An Act amending the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971, repealing provisions relating to Computer Data Center Equipment Incentive Program; and, in general provisions, providing for data centers.
HB 2198 repeals the Computer Data Center Equipment Incentive Program from Pennsylvania's Tax Reform Code of 1971. This bill eliminates tax exemptions and refunds previously available for investments in data center equipment, such as servers, cooling systems, and energy infrastructure. The repeal directly affects computer data centers and their owners/operators who previously qualified for these tax benefits under Article XXIX-D. The policy change removes a specific tax incentive program without creating new provisions. This is a procedural change to the tax code, ending an existing program for data center equipment investments.
Bill status
passed
3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Jun 2026
House Passage
Jun 2026
Senate Passage
Governor
Introduced Feb 5, 2026
Last action Jun 26, 2026
Maddy AI version diff · 1 comparison
What changed between versions
Printer's No. PN2889
→
Printer's No. PN3694
·
5 edits
MODERATE
This bill update significantly expands the list of sponsors and amends the Computer Data Center Equipment Incentive Program to include broader definitions of equipment and operational requirements. It adds new provisions to restrict tax benefits for data centers not certified by a specific early date and clarifies the effective date of the act.
Scope change
The bill's scope was expanded to include more legislators as sponsors and to explicitly address data centers in relation to other tax benefit programs like Keystone Opportunity Zones.
SCOPE
Added numerous new sponsors to the bill, including CEPEDA-FREYTIZ, DONAHUE, MULLINS, and others.
DEFINITION
Expanded the definition of 'computer data center equipment' to include mechanical equipment, refrigerant piping, and adiabatic systems, ensuring a broader range of infrastructure is covered.
ELIGIBILITY
Added a new Section 3003.26 stating that computer data centers must be certified under the new program by February 3, 2026, to remain eligible for other tax benefits like Keystone Opportunity Zones.
TIMELINE
Changed the effective date of the act from '60 days' to 'immediately' to accelerate implementation.
REQUIREMENT
Added a deadline preventing the department from certifying any new computer data centers after December 31, 2032.
Floor votes · House Jun 24, 2026
How they voted
201–0
Passed
Total votes 201
Jun 24, 2026
D
Democratic102
100% Yea
R
Republican99
100% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
11
Key actions
5
Committee
7
Jun 26, 2026
Committee
Referred to Finance
upper
Jun 25, 2026
Lower · Passed
Third consideration and final passage
lower
Jun 25, 2026
Lower · Passed
Re-reported as committed
lower
Jun 24, 2026
House · Passed
House Vote: pass (201-0)
house
Jun 24, 2026
Committee
Re-committed to Appropriations
lower
Jun 24, 2026
Lower · Passed
Re-reported as committed
lower
Jun 23, 2026
Committee
Re-committed to Rules
lower
Jun 23, 2026
Lower · Passed
Reported as committed
lower
Feb 5, 2026
Committee
Referred to Finance
lower
1 primary · 33 co-sponsors
Sponsors
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