The Data Center Community Reinvestment Act of 2026 imposes a federal excise tax of one cent per kilowatt-hour on electricity consumed by data centers with a peak power load exceeding one megawatt. The revenue generated from this tax is divided equally among five specific government funds: the Land and Water Conservation Fund, the Housing Trust Fund, the Hazardous Substance Superfund, the Highway Trust Fund, and a newly established Energy Technology Trust Fund. This legislation directly affects large-scale data center operators by adding a cost to their energy usage, while directing the collected funds toward infrastructure, environmental cleanup, housing, and energy technology initiatives.
The AI Tax and Work Protection Act imposes a new excise tax on companies that develop or sell artificial intelligence foundation models, with rates that increase based on the national unemployment level. The revenue generated from this tax is placed into a dedicated trust fund to finance a new federal jobs program administered by a newly created Office of Job Creation within the Department of Labor. This program awards grants to state, local, and tribal governments to hire permanent, full-time workers for specific public service roles, such as in education, healthcare, infrastructure, and community safety. To ensure the jobs created do not replace existing workers, the bill includes strict nondisplacement rules and mandates that grant recipients provide employees with strong labor protections, including collective bargaining rights, competitive wages, and paid leave. Additionally, the legislation directs the Bureau of Labor Statistics to study the impact of AI on the workforce and establishes an advisory committee to guide the implementation of the job creation initiatives.
The Curtailing Executive Overcompensation (CEO) Act imposes a new excise tax on large companies where the highest-paid CEO earns significantly more than the median worker. This tax applies to employers with over $100 million in annual revenue and over $10 million in wages, charging a fee equal to the lesser of 1% of the pay gap or 1% of the company's gross receipts. The law defines the pay gap as the difference between the CEO's average compensation and 50 times the median wage of all employees earning at least $5,000, with thresholds adjusted for inflation after 2027. Companies found to be manipulating their workforce to avoid the tax could face joint liability, and the IRS will issue regulations to prevent such avoidance.
The Small Business and Consumer Credit Act of 2026 changes how certain financial institutions can use tax losses to offset future profits. It allows these banks to carry forward net operating losses for up to 20 years, with additional rules allowing them to carry losses back to previous years starting in 2028. The law specifically applies to independent banks and certain affiliated groups, requiring them to make an irrevocable election on their tax returns to use these new provisions.
This bill creates the American A.I. Sovereign Wealth Fund by imposing an excise tax on large artificial intelligence companies, requiring them to transfer 50% of their equity to a new government trust. The legislation defines "applicable AI companies" as those with over $200 million in annual revenue from AI data centers, computing infrastructure, services, or advanced robotics. A newly established Independent Commission for Democratic AI would manage the fund's assets and use its voting rights to influence corporate governance, aiming to ensure the technology benefits the public. Additionally, the bill mandates that these companies undergo structural separation to operate solely in AI-related activities and prohibits the fund from using its resources to bail out any struggling firms.
The Business Activity Tax Simplification Act of 2026 updates federal rules to clarify when states can tax businesses operating across state lines, primarily affecting interstate companies and digital service providers. It expands the definition of taxable activities to include digital goods and services while clarifying that independent contractors do not create tax liability for their principal companies. The bill also establishes a minimum physical presence requirement, stating that states generally cannot tax businesses unless they have employees, agents, or property in the state for at least 15 days. Additionally, the law extends existing federal protections against state taxation to various "other business activity taxes" and provides specific guidelines for how states should calculate taxes on groups of affiliated companies. These changes are designed to take effect for taxable periods starting on or after January 1, 2026.
The Stock Buyback Accountability Act of 2026 raises the federal excise tax on corporate stock repurchases from 1 percent to 4 percent, directly affecting corporations that buy back their own shares. This change also modifies existing tax rules to exclude stock issued to high-income executives and employees earning over $1 million from the tax calculation. The new provisions apply to stock repurchases occurring after the law is enacted, with specific transition rules for partial-year transactions, while the adjustments to tax exemptions take effect for taxable years ending more than 90 days after enactment.
This bill proposes to exempt qualified religious institutions from a federal excise tax on excess investment income. To qualify for this exemption, an institution must be established after 1776, have at least 25% of its governing body appointed by or required to be members of a recognized religious organization, and maintain a mission statement based on religious beliefs. The changes would take effect for tax years beginning after December 31, 2025, with the Treasury Department required to issue guidance by the end of 2026.
The Modern, Clean, and Safe Trucks Act of 2026 repeals the 12 percent federal excise tax on new heavy trucks, tractors, and trailers. By removing this tax, the bill aims to lower the purchase price of these vehicles and encourage the replacement of older, less efficient models with newer, cleaner technology. The legislation directly affects truck manufacturers, dealerships, and fleet operators by eliminating a specific line item in the Internal Revenue Code that currently applies to the first retail sale of these items. Additionally, the act includes technical amendments to related tax sections to ensure consistency after the main tax is removed.
This bill, titled the Gas Tax Relief Act, temporarily eliminates the federal excise tax on gasoline and other taxable fuels for a period of up to 215 days starting after its enactment. The tax holiday directly affects drivers and businesses that purchase fuel, removing the specific tax rates that currently apply to these purchases. To maintain federal revenue, the law requires the Treasury Secretary to transfer an amount equal to the tax savings into the Highway Trust Fund and the Leaking Underground Storage Tank Trust Fund. Additionally, the President has the authority to extend the tax suspension or gradually reintroduce the tax over time based on economic conditions.
