Nebraska governor restricts data center tax incentives

Governor Jim Pillen has announced an executive order ending access to ImagiNE Nebraska Act tax incentives for data centers and creating a review process for future proposals.

• The order prohibits data center applications from being approved under the ImagiNE Nebraska Act and requires DED, Revenue and DWEE to review proposals collaboratively to determine whether projects are in Nebraska’s best interest.
• The order also requires a data center task force through DWEE to protect natural resources; Gov. Pillen said it is not a moratorium and noted the state will assess impacts on land, water and electricity.
• The announcement was made in Lincoln, Nebraska on 2026-07-21 and referenced LB1261 and its “behind the meter” legislation for industrial power facilities.