As the public in many communities pushes back on data center development, lawmakers are considering new tax policies for these enterprises. In the U.S. Senate, there’s a proposal to eliminate federal tax incentives for data centers, including ending eligibility for 100% bonus depreciation. This proposal would also introduce an excise tax on data centers’ gross receipts. In the U.S. House, the Data Center Community Reinvestment Act would impose a 1-cent-per-kilowatt-hour tax on electricity used by certain data centers. Critics of these proposals, however, suggest they’d only push data centers — and their economic benefits — overseas.
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