SB5418: No Tax Breaks for Data Centers Act

What the bill says

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

From the introduced text, September 16, 2026:

A BILL To amend the Internal Revenue Code of 1986 to exclude data centers from the definition of qualified opportunity zone businesses. SECTION 1. Short title This Act may be cited as the No Tax Breaks for Data Centers Act . SECTION 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.

Read the full official text

Sponsors

• Hawley, Josh (R, SD-MO) · primary sponsor

Latest actions

1. September 16, 2026: Read twice and referred to the Committee on Finance.
2. September 16, 2026: Introduced in Senate

Common questions

What is SB5418?

SB5418 is a bill in Congress (119th Congress): No Tax Breaks for Data Centers Act.

What does SB5418 do?

In its own words: To amend the Internal Revenue Code of 1986 to exclude data centers from the definition of qualified opportunity zone businesses.

What is the status of SB5418?

In committee as of September 16, 2026. Latest action: Read twice and referred to the Committee on Finance. (September 16, 2026).

Who sponsored SB5418?

Hawley, Josh (R, SD-MO).

Where is the official record for SB5418?

On the Congress website: https://www.congress.gov/bill/119th-congress/senate-bill/5418