Artificial intelligence is fueling an unprecedented surge in demand for hyperscale data centers—massive, billion-dollar projects at the center of a high-stakes interstate competition. In this article, Stephen Long in Dallas and Doug Wick in Chicago examine how Texas has emerged as a national leader by pairing an expansive incentive framework with a business-friendly environment to build one of the largest data center footprints in the country. But recent legislative signals suggest the state may recalibrate…
Artificial intelligence, or more commonly AI, seems to be what everyone is talking about nowadays. Businesses are investing hundreds of billions into AI research and, in parallel, integrating AI products into their day-to-day operations in order to maximize business savings and obtain a competitive advantage over their competitors. It is no secret the tax treatment of AI could have profound consequences for businesses. However, most states have not made their position on the taxability of…
Data processing gets top billing in Texas regarding internet taxation, but it is not the only relevant taxable service in this context. If data processing is Batman, information services has long been its Robin. The two are often thought of together because of their similarities. Both taxable services are defined broadly and potentially catch a wide range of services in their nets. Both were also enacted simultaneously in the same legislation. In fact, while the…
On October 17, 2022, a Maryland state judge in the Circuit Court of Anne Arundel County struck down the state’s Digital Advertising Tax (“Digital Ad Tax”) as violating the Internet Tax Freedom Act (“ITFA”) and the Commerce Clause and First Amendment of the U.S. Constitution. Comcast of California/Maryland/Pennsylvania/Virginia/West Virginia LLC, et al. v. Comptroller of the Treasury of Maryland, Case No. C-02-CV-21-000509 (Md. Cir. Ct. Anne Arundel Cnty.). The judge issued her ruling from the…