House Democrats Target Data Center Tax…House Democrats Target Data Center Tax Breaks

House Democrats introduced the Reverse Big Ugly Tax Breaks for Data Centers Act, H.R. 10448, to exclude data centers from 100% bonus depreciation and Opportunity Zone tax benefits expanded under the One Big Beautiful Bill Act. Sponsors argue that these incentives are accelerating AI data center construction while shifting electricity, water, infrastructure, and tax costs onto communities. The proposal follows related Senate and state-level efforts to condition or offset data center incentives, but its legislative prospects remain unclear.