Wisconsin voters have heard a claim that Republican Rep. Tom Tiffany, who is now running for governor, voted to give data‑center operators a $68 billion tax break. The ad, funded by a group backed by the Democratic Governors Association, points to Tiffany’s yes vote on the 2025 federal budget known as the One Big Beautiful Bill Act.
What the vote actually covered
The One Big Beautiful Bill Act was a nearly 900‑page omnibus spending and tax package. It contained hundreds of individual provisions, ranging from infrastructure spending to a variety of tax incentives. One of those incentives is a 100 percent depreciation allowance, which lets businesses immediately deduct the cost of qualifying capital investments.
That depreciation rule is not limited to data centers. It is available to any qualified business that makes capital investments, including manufacturers, retailers, and service providers. The rule therefore benefits a broad swath of the economy, not a single industry.
Where the $68 billion figure comes from
A left‑leaning think tank estimated that four large technology companies—Microsoft, Meta, Alphabet and Amazon—could avoid roughly $68 billion in taxes in 2025 by using the depreciation provision and three other tax breaks included in the bill. The estimate reflects the potential savings for those specific firms, not a direct grant or subsidy to data‑center operators as a class.
Because the depreciation provision is a standard tax policy tool, it does not constitute a targeted $68 billion “tax break” for data centers. The figure represents a possible reduction in tax liability for certain companies under existing tax law, not a new, earmarked benefit.
Why the claim is misleading
Voting yes on an omnibus budget does not equal a yes vote on every line item. Lawmakers often support a package because the overall priorities align with their goals, even if they may disagree with specific provisions. In this case, Tiffany’s vote was for the broader budget, not a separate, dedicated data‑center tax break.
The ad’s wording suggests a direct, intentional giveaway to data‑center operators, which the legislative record does not support. No separate amendment or earmarked provision was added to the bill that would allocate $68 billion specifically to data‑center owners.
What the Trump administration says
The current administration has emphasized the importance of a competitive tax environment that encourages investment across all sectors, including technology. The depreciation provision aligns with that philosophy, offering businesses a tool to accelerate investment without singling out any one industry.
Administration officials have noted that broad‑based tax incentives can spur job creation and economic growth, especially in regions like northern Wisconsin where data‑center development has been a point of interest for local leaders.
Bottom line
Tom Tiffany’s vote on the 2025 federal budget does not equate to a $68 billion tax break specifically for data‑center operators. The depreciation rule is a general tax provision that applies to many businesses, and the $68 billion figure is an estimate of potential savings for a handful of large tech firms, not a direct subsidy. Voters should consider the broader context of the omnibus bill rather than a single, misleading claim.
Original reporting: Wisconsin Watch — read the source article.