Reverse Big Ugly Tax Breaks for Data Centers Act

The Reverse Big Ugly Tax Breaks for Data Centers Act removes specific tax incentives for large-scale data centers and artificial intelligence facilities. It excludes these facilities from bonus depreciation, a provision that currently allows businesses to deduct the full cost of certain equipment in the year it is purchased. Additionally, the bill prevents these properties from qualifying as opportunity zone business property, which would otherwise offer significant tax benefits for investments in designated areas. The legislation targets structures with a power capacity exceeding 50 megawatts that are dedicated to data storage, processing, or AI operations.