Scope
Wis. Stat. 238.40 directs the Wisconsin Economic Development Corporation to certify a qualified data center for purposes of the sales and use tax exemption under s. 77.54(70). A qualified data center is one or more buildings owned, leased or operated by the same business entity or its affiliate, rehabilitated or constructed to house networked server computers, that create a minimum qualified investment within 5 years from certification of $150,000,000 in a county of more than 100,000 people, $100,000,000 in a county of more than 50,000 and not more than 100,000, or $50,000,000 in a county of not more than 50,000. The corporation must revoke a certification if the investment requirement is not met, the contract must include recapture provisions, and the corporation may grant an extension of time.
- Geographic scope
- Wisconsin
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- Wisconsin Legislature
Dates
- Adopted
- 5 July 2023
- Effective
- 1 October 2023
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The opened section states no end date.
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
Section 238.40 of the Wisconsin Statutes, created by 2023 Wisconsin Act 19, sets out who qualifies for the state sales and use tax exemption for qualified data centers. The Wisconsin Economic Development Corporation certifies a data center that commits to a minimum investment within five years, ranging from $50 million to $150 million depending on county population, and must revoke the certification, with recapture under its contract, if the investment is not made. The section took effect on 1 October 2023.
What this does not establish
- The enactment date (5 July 2023) and effective date (1 October 2023) come from 2023 Wisconsin Act 19, a supporting source: SECTION 9437(3) makes the treatment of ss. 77.54(70) and 238.40 effective on the first day of the 3rd month beginning after publication, and the act was published on 6 July 2023; the codified text independently prints 1 October 2023.
- The list of data centers the corporation has certified, and their certification dates, was not reviewed.
- This section defines who qualifies for the exemption in the separate record wi-stat-77-54-70-qualified-data-center-exemption.
- Failed 2025 Assembly Bill 722 and Senate Bill 729 would have amended this section; they did not become law and are separate records.
Unresolved questions
None recorded.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement 2025 Wisconsin Act 16: data center tax incremental district exception (In effect)
- Related, not a replacement Department of Revenue guidance on the qualified data center exemption (Fact Sheet 2114) (Informational—not binding)
- Related, not a replacement Qualified data center sales and use tax exemption (Wis. Stat. 77.54(70)) (In effect)
Sources
https://docs.legis.wisconsin.gov/statutes/statutes/238/ii/40
- 2023 Wisconsin Act 19 (enrolled act) Enacting act: SECTION 437 creates s. 238.40; SECTION 9437(3) sets the effective date · 5 July 2023