Rep. Sykes Cosponsors Bill to Rein In Tax Giveaways to Data Centers
WASHINGTON, D.C. — U.S. Representative Emilia Sykes (OH-13) cosponsored the Reverse Big Ugly Tax Breaks for Data Centers Act, which would rein in tax giveaways for data center development.
Last year, the One Big Beautiful Bill Act (OBBBA) significantly expanded tax breaks that have helped spur the construction of AI data centers; that same legislation cut over $1 trillion from Medicaid and SNAP food assistance. The Reverse Big Ugly Tax Breaks for Data Centers Act would exclude data centers from benefiting from those OBBBA tax breaks. Specifically, the bill would exclude data centers from being able to take the 100% bonus depreciation tax deduction, and from being eligible for Opportunity Zone tax benefits.
“While families struggle to pay for gas, groceries, housing and healthcare, we should not give big tax breaks to data centers,” said Rep. Sykes. “I support this commonsense bill that prevents tax giveaways at the expense of cutting healthcare and food assistance for children and seniors. We must rein in the blank checks being written to data centers and ensure they pay their fair share for energy and water usage.”
The bill text can be found HERE, and a one-pager on the bill can be found HERE.
This bill was introduced by Representatives Don Davis (NC-01) and Kristen McDonald Rivet (MI-08), with the support of Representatives Emilia Sykes (OH-13), Kathy Castor (FL-14), Sharice Davids (KS-03), Madeleine Dean (PA-04), Chris Deluzio (PA-17), Vicente Gonzalez (TX-34), Adelita Grijalva (AZ-07), Greg Landsman (OH-01), Rick Larsen (WA-02), Mike Levin (CA-49), John Mannion (NY-22), April McClain Delaney (MD-06), Betty McCollum (MN-04), Jimmy Panetta (CA-19), Chris Pappas (NH-01), Deborah Ross (NC-02), Andrea Salinas (OR-06), Greg Stanton (AZ-04), Dina Titus (NV-01), Norma Torres (CA-35), Derek Tran (CA-45), Gabe Vasquez (NM-02), Eugene Vindman (VA-07), and Debbie Wasserman Schultz (FL-25).