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Narrow server farm vote shows legislative rift on tax breaks

A razor-thin legislative vote on tax breaks for a Grand Rapids-area data center could portend problems for other companies or industries hoping to secure economic incentives in Michigan.

A divided state House this past week passed legislation that would give additional tax exemptions to Switch.

The company opened a mega-campus of computer servers in 2017.

The Senate may vote when it returns next year.

The dispute comes as lawmakers declined to extend Michigan's "Good Jobs" tax incentives for large-scale business expansions.

Lawmakers also left the Pure Michigan tourism campaign unfunded amid a budget impasse.