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) are 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) Definitions For purposes of subparagraph (A)— (i) Graphics processing unit For purposes of subparagraph (A), the term graphic processing unit means a specialized electronic circuit designed to accelerate image rendering, graphics processing, and parallel computation tasks. (ii) 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).. (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) Transfer to National Workforce Transition Fund (1) In general The Secretary of the Treasury (or the Secretary’s delegate) shall, on an annual basis, transfer to the National Workforce Transition Fund (as established under section 304 of the Workforce Innovation and Opportunity Act), from amounts in the general fund of the Treasury of the United States, an amount determined by the Secretary of the Treasury (or the Secretary’s delegate) to be equal to the increase in revenue for the preceding 12-month period by reason of the amendments made by subsections (a) and (b). (2) Termination Paragraph (1) shall not apply after the date which is 5 years after the date of enactment of this Act. (d) Effective date The amendments made by this section shall apply to property placed in service after the date of enactment of this Act.