H.R. 10448 — Reverse Big Ugly Tax Breaks for Data Centers Act

This section excludes qualified data center property from eligibility for bonus depreciation under section 168(k). It defines such property as any property used in or dedicated to a covered data center, meaning a permanent or semipermanent structure exceeding 50 megawatts in maximum rated power capacity or total peak power load and dedicated to data storage, processing, transport, or artificial intelligence operations. The change applies to property placed in service in taxable years beginning after the date of enactment.

This section excludes covered data centers and qualified data center property from the definition of qualified opportunity zone business property eligible for tax deferral and exclusion benefits under the opportunity zones program. The change applies to property acquired in taxable years beginning after the date of enactment.