Data Center Tax Accountability and Disclosure Act of 2026

This bill removes bonus depreciation for AI data centers and requires data center operators to disclose water and electricity usage. Section 2, Exempting AI data centers from bonus depreciation: It amends the Internal Revenue Code to exclude property used in an AI data center from bonus depreciation. An AI data center is defined as a structure dedicated to IT equipment with at least one GPU, where at least 20% is used for developing or operating AI. The exclusion does not apply to data centers with LEED Platinum or Gold certification, or an equivalent standard set by the Secretary of Energy and EPA Administrator. Leased AI data centers must follow specific depreciation rules. The changes apply to property placed in service after enactment. Section 3, Data center disclosures: Operators of covered data centers (power demand of 25 megawatts or more, excluding dedicated federal data centers) must submit initial disclosures and annual reports to the applicable recipient (an electing state, or the Secretary of Energy and EPA Administrator). Reports must include water usage and sources, electricity consumption and peak demand, greenhouse gas emissions, backup power details, and property setback requirements. Electing states must compile and submit these to the Secretary and Administrator, who will publish them. The Director of OMB must set standards for federal data center disclosures, balancing transparency and national security. Nondisclosure agreements cannot prevent required disclosures. Penalties for noncompliance are up to $50,000 per day for negligent violations and $100,000 per day for knowing violations. The Secretary and Administrator must issue regulations within 180 days.