Representative Mannion Cosponsors Bill to Stop Tax Giveaways for Data Centers

WASHINGTON, D.C. - Representative John W. Mannion (NY-22) today announced he is an original cosponsor of new legislation to stop data centers from claiming special federal tax breaks included in Donald Trump's partisan budget bill.

Last year, the One Big Beautiful Bill Act (OBBBA) significantly expanded tax breaks that have helped spur the construction of AI data centers; that same legislation cut over $1 trillion from Medicaid and SNAP food assistance. The Reverse Big Ugly Tax Breaks for Data Centers Act would exclude data centers from benefiting from those OBBBA tax breaks. Specifically, the bill would exclude data centers from being able to take the 100% bonus depreciation tax deduction, and from being eligible for Opportunity Zone tax benefits.

Representative John W. Mannion said, "Data centers need to pay their own way, and siting decisions must be transparent, locally driven, and centered on the people who live in these communities. It's wrong to hand out tax breaks and public resources to data centers, especially while cutting over $1 trillion in food assistance, Medicaid, and health care."

The legislation is being led by Representatives Kristen McDonald Rivet (MI-08) and Don Davis (NC-01.)

Earlier this week, Representative Mannion also voted for the bipartisan Ratepayer Protection Act. That legislation would require state utility regulators to consider policies ensuring data centers cover the full cost of the new power generation and transmission upgrades required to serve them instead of shifting those costs onto families and small businesses.

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