U.S. Senator Josh Hawley has introduced the No Tax Breaks for Data Centers Act to prevent Big Tech companies from taking advantage of tax incentives previously authorized by Congress to encourage investment in low-income communities.
The Opportunity Zone program, originally enacted by Congress in 2017, provides eligible taxpayers substantial tax breaks for qualifying investments in low-income communities. Unfortunately, some companies have hijacked the program to purchase and construct data centers. One report found that between 14 percent and 17 percent of data centers in the United States have been built, or will be built, in qualifying opportunity zones — permitting tech companies to qualify for tax incentives that were not intended for them.
This legislation follows Senator Hawley’s bipartisan GRID Act, which prevents data centers from driving up energy costs and ensures that American consumers are not carrying the burden of the increased electricity usage.
