Media Mention: Peter Ledford Offers Perspective on NC Data Center Tax Exemption in WUNC News

Energy and utilities attorney Peter Ledford was recently featured in a WUNC News article that examines growing bipartisan scrutiny of North Carolina’s data center sales tax exemption.

Titled “Gov. Stein asks energy task force to consider overhaul or elimination of NC’s data center tax breaks,” the article covers the Governor’s request to eliminate or restructure a tax break that exempts qualifying data centers from paying sales and use taxes on equipment and electricity.

According to WUNC News, state officials estimate that existing data centers are currently avoiding between $45 and $57 million in annual sales taxes, a figure that could climb to more than $450 million per year if all planned data center construction in the state moves forward. Stein argued that the incentives are no longer necessary.

Peter, who previously served as Governor Roy Cooper’s clean energy director and now represents the Carolinas Industrial Group for Fair Utility Rates on the Governor’s Energy Policy Task Force in his role at Ward and Smith, urged policymakers to consider the full picture before acting:

“We can’t have (this conversation) in a vacuum. We need to look at both sides of the ledger about what costs would be, but also what benefits are provided.”

As the debate moves toward the N.C. General Assembly, where any changes to the tax structure would ultimately need to be passed, the conversation is likely to intensify, especially with billions of dollars in planned data center construction on the line. Ward and Smith’s Energy and Utilities team will be closely following the developments. Until then, read the full article on WUNC News to get a look at both sides of the debate.