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S. 5418Senate119th Congress (2025-2027)In Committee

No Tax Breaks for Data Centers Act

A bill to amend the Internal Revenue Code of 1986 to exclude data centers from the definition of qualified opportunity zone businesses.

Sponsored by Josh HawleySen. Josh Hawley (R-MO)
Introduced September 16, 2026

AI-Generated Summary

Updated October 1, 2026 at 3:21 AM UTC

The bill changes the tax code so that data centers are no longer considered qualified opportunity zone businesses. This means that owners of data centers and investors cannot claim the tax benefits that are normally available for businesses operating in designated opportunity zones. The change applies to any related stock, capital, profit interests, or property acquired after the law takes effect.

Key Provisions

  • Amends the definition of a qualified opportunity zone business to add the phrase “and is not a data center,” explicitly excluding data centers.
  • Updates related language to refer to “qualified opportunity zone trade or business” instead of just “trade or business.”
  • Specifies that the amendment applies only to interests and property acquired after the law’s enactment.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

Finance Committee

September 16, 2026

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SenateIntro Referral

Introduced in Senate

September 16, 2026

SenateIntro Referral

Read twice and referred to the Committee on Finance.

Finance Committee

September 16, 2026

Bill Text

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Introduced in SenateIssued September 16, 2026

II

119th CONGRESS

2d Session

S. 5418

IN THE SENATE OF THE UNITED STATES

September 16, 2026

Mr. Hawley introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to exclude data centers from the definition of qualified opportunity zone businesses.

1.

Short title

This Act may be cited as the No Tax Breaks for Data Centers Act.

2.

Data centers excluded from definition of opportunity zone business

(a)

In general

Section 1400Z–2(d)(3)(A)(iii) of the Internal Revenue Code of 1986 is amended by inserting and is not a data center after section 144(c)(6)(B).

(b)

Conforming amendment

Section 1400Z–2(d)(2)(D)(i) of such Code is amended by striking trade or business and inserting qualified opportunity zone trade or business.

(c)

Effective date

The amendments made by this section shall apply to stock, capital or profits interests, and property acquired after the date of the enactment of this Act.