Reverse Big Ugly Tax Breaks for Data Centers Act

This bill would change federal tax law so that property used in large data centers can no longer qualify for bonus depreciation, which lets businesses deduct the cost of certain property faster. A covered data center is a permanent or semipermanent structure with a power capacity or peak load above 50 megawatts that houses computer and network equipment for data storage, processing, transport, or artificial intelligence. Property located outside the data center but dedicated to running it would also be excluded. The bill would also bar these data centers and their property from counting as qualified opportunity zone business property. The changes would apply to property placed in service or acquired in tax years beginning after the bill becomes law.

Full text and official record on Congress.gov

Sponsors

• Kristen McDonald Rivet Democrat sponsor
• 32 cosponsors