In computer data center equipment incentive program, further providing for application for certification and for eligibility requirements.
HB2061 amends Pennsylvania’s Tax Reform Code provisions governing the computer data center equipment incentive program. The bill adds a new requirement for owners or operators seeking certification for a computer data center project: for construction, expansion, rehabilitation, renovation, site work, and related on-site work beginning on or after July 1, 2025, the applicant must affirm that all contractors and subcontractors will pay workers at least the prevailing minimum wage and benefit rates under the Pennsylvania Prevailing Wage Act. The bill applies this requirement to a broad set of on-site activities, including construction, demolition, alteration, repair, and reconstruction, while excluding routine maintenance work.
The same prevailing wage affirmation is added both to the application for certification and to the eligibility requirements for certification under the incentive program. In practical terms, the bill ties access to the state’s data center tax incentive to compliance with prevailing wage standards, and it specifies that the wage requirement applies even if the project would not otherwise meet the usual coverage thresholds under the Prevailing Wage Act. The bill takes effect immediately.
HB2061 would change the conditions for participation in Pennsylvania’s computer data center equipment incentive program by making prevailing wage compliance a certification and eligibility requirement. It would affect data center owners, operators, qualified tenants, contractors, and subcontractors involved in covered projects, and it would expand the reach of prevailing wage obligations to certain data center construction-related work regardless of other statutory coverage limits. The Department of Revenue would continue to administer the incentive program, while the Department of Labor and Industry would determine and enforce the applicable wage and benefit rates under the Prevailing Wage Act.
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the measure appears to be framed as a labor standards and tax incentive policy change rather than a controversial procedural bill. Its sponsors are all House Democrats, suggesting support from members favoring prevailing wage protections and labor conditions tied to public incentives. No contrary positions, amendments, or recorded votes are provided, so the overall sentiment can only be characterized as supportive among sponsors and neutral-to-unknown in the broader legislative process.
The main point of contention likely concerns whether the state should condition a tax incentive for data centers on prevailing wage requirements. Supporters would view the bill as ensuring that publicly supported projects pay fair wages and benefits on construction-related work. Opponents, if any, would likely argue that the added labor requirement could increase project costs, reduce competitiveness for data center investment, or impose obligations beyond the normal scope of the Prevailing Wage Act. The bill also explicitly extends prevailing wage coverage regardless of other statutory thresholds, which may be a focal point for debate.