Artificial intelligence excess profits tax

(a) In general Chapter 50B of subtitle D of the Internal Revenue Code of 1986, as added by this Act, is amended by adding at the end the following new section: 5000E–3. Excess profits from artificial intelligence development (a) In general In addition to any other tax imposed under this title, there is hereby imposed on any covered taxpayer a tax of 50 percent of the excess (if any) of— (1) the taxable income of such covered taxpayer for any taxable year, over (2) an amount equal to 40 percent of the gross receipts of such covered taxpayer for such taxable year. (b) Definitions For purposes of this section— (1) Covered taxpayer (A) In general The term covered taxpayer means, with respect to any taxable year, any taxpayer— (i) for which total revenue during such taxable year exceeded $100,000,000, and which— (I) was engaged in— (aa) developing and training an artificial intelligence model that is machine learning, deep learning, or generative artificial intelligence, or (bb) developing artificial intelligence technology based on a trained artificial intelligence model, or (II) was a covered AI electricity user for the taxable year preceding such taxable year, or (ii) which, during such taxable year, derived greater than $100,000,000 in revenue from providing computing for— (I) the development and training of an artificial intelligence model, (II) the development of artificial intelligence technology based on a trained artificial intelligence model, or (III) the deployment or use of— (aa) an artificial intelligence model, or (bb) technologies based on an artificial intelligence model, including autonomous systems that can perceive, understand, perform, or orchestrate complex actions in the physical world. (B) Aggregation rules (i) In general All persons treated as a single employer under subsection (a) or (b) of section 52 or subsection (m) or (o) of section 414, shall be treated as 1 person for purposes of this paragraph. (ii) Inclusion of foreign corporations For purposes of clause (i), in applying subsections (a) and (b) of section 52 to this paragraph, section 1563 shall be applied without regard to subsection (b)(2)(C) thereof. (2) Covered AI electricity user (A) In general The term covered AI electricity user means any person which, for any taxable year— (i) consumed electricity for any of the activities described in subclause (I) or (II) of subparagraph (A)(i), and (ii) with respect to such activities— (I) had an average electrical load of greater than 50 megawatts during any period of 30 consecutive days during such taxable year, or (II) consumed greater than 400,000,000 kilowatt hours of electricity. (B) Additional aggregation rules Pursuant to such rules as are prescribed by the Secretary, any electricity consumed for any of the activities described in subclause (I) or (II) of subparagraph (A)(i)— (i) by any entities under common control (within the meaning of subsections (a) and (b) of section 52), or (ii) through a data center, cloud computing service, colocation agreement, or other third-party computing arrangement, shall be aggregated for purposes of subparagraph (A). (c) Regulations and guidance The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section, including any regulations or guidance with respect to the filing of the return of tax imposed by this section.. (b) Clerical amendment The table of sections for chapter 50B of subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new item: Sec. 5000E–3. Excess profits from artificial intelligence development.. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2026.