Exempting AI data centers from bonus depreciation

(a) In general Section 168(k) of the Internal Revenue Code of 1986 is amended— (1) in paragraph (9)— (A) in subparagraph (A), by striking or at the end, (B) in subparagraph (B), by striking the period at the end and inserting, or, and (C) by adding at the end the following new subparagraph: (C) any property used in an AI data center., and (2) by adding at the end the following new paragraph: (11) AI data center (A) In general For purposes of paragraph (9)(C), the term AI data center means a permanent or semipermanent structure, or group of such structures, which— (i) is dedicated to— (I) the centralized accommodation, interconnection, and operation of information technology and network telecommunications equipment (including not less than 1 graphics processing unit), and (II) providing data storage, processing, and transport services, and (ii) at least 20 percent of which is used for developing or operating artificial intelligence. (B) Exclusion (i) In general For purposes of paragraph (9)(C), the term AI data center shall not include any structure or group of structures described in subparagraph (A) which has obtained the LEED Green Building Rating System certification at the Platinum or Gold level. (ii) Alternate standard The Secretary of Energy and the Administrator of the Environmental Protection Agency may jointly— (I) establish or identify an alternate standard that is equivalent to or exceeds the standard described in clause (i), and (II) as an alternative to the standard described in clause (i), allow the use of such alternate standard for purposes of the exclusion provided under such clause. (C) Definitions For purposes of this paragraph— (i) Artificial intelligence The term artificial intelligence has the meaning given such term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401). (ii) Graphics processing unit The term graphic processing unit means a specialized electronic circuit designed to accelerate image rendering, graphics processing, and parallel computation tasks. (iii) LEED Green Building Rating System The term LEED Green Building Rating System means the most recent version of the Leadership in Energy and Environmental Design green building rating system for— (I) Building Design and Construction, or (II) Operations and Maintenance, as developed by the U.S. Green Building Council.. (b) Application of leased property rules to AI data centers Section 168 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (o) Application of leased property rules to AI data centers In the case of any AI data center (as defined in subsection (k)(11)) which is subject to a lease, the depreciation deduction provided by section 167(a) shall be determined pursuant to the rules under section 1.167(a)–11(e)(3)(iii) of title 26, Code of Federal Regulations (as in effect on the date of enactment of this subsection).. (c) Effective date The amendments made by this section shall apply to property placed in service after the date of enactment of this Act.