Governor Jim Pillen Ends Data Center Tax Subsidies in Nebraska

Governor Jim Pillen signed an executive order on July 20, 2026, suspending state tax incentives for new large-scale data centers. The order blocks new projects from receiving sales and use tax refunds, personal property tax exemptions, and wage credits under the ImagiNE Nebraska Act. Pillen clarified the measure is not a moratorium on construction but a necessary step to protect Nebraska's low-cost public power system and water resources from excessive consumption.

The order establishes a Data Center Task Force, led by the Nebraska Department of Water, Energy, and Environment and the Nebraska Department of Economic Development. This task force will develop long-term strategies and resource safeguards to present to the state Legislature. This action follows the June signing of LB 1261, which prevents data centers from using power funded by ratepayers, and comes as at least a dozen Nebraska counties implemented their own local moratoriums.

Democratic gubernatorial candidate Lynne Walz criticized the move, alleging that Pillen had lobbied senators to pass these same incentives less than four months prior. Pillen defended the decision by stating the state must attract "givers, not takers" who invest in the community rather than extracting resources without contributing to job creation or infrastructure.