This legislation, titled the "Data Center Tax Accountability and Disclosure Act of 2026," introduces significant changes to how artificial intelligence (AI) data centers are treated under tax law and imposes new reporting requirements on large data centers. A primary provision of the bill is to exempt AI data centers from bonus depreciation , amending the Internal Revenue Code to exclude property used in such facilities from this accelerated depreciation benefit. An AI data center is defined as a structure dedicated to IT and telecommunications equipment, including at least one graphics processing unit, with at least 20 percent of its use for developing or operating artificial intelligence. However, this exemption does not apply to AI data centers that achieve LEED Green Building Rating System certification at the Platinum or Gold level , or an equivalent standard established by the Secretary of Energy and the Administrator of the Environmental Protection Agency. The bill also specifies that certain leased property rules will apply to these AI data centers. These tax-related amendments will take effect for property placed in service after the bill's enactment. Beyond tax policy, the bill mandates extensive disclosure requirements for covered data centers , defined as those with a power demand of 25 megawatts or more, excluding dedicated federal facilities. New data centers must submit initial disclosures 180 days before commencing operations, while existing ones must do so within 180 days of enactment. Annually, by December 31st, operators must submit detailed reports on water access and usage, including total gallons, sources, and water usage effectiveness (WUE). The annual reports also require comprehensive information on electricity access and usage , such as total contracted or consumed megawatt-hours, peak demand, greenhouse gas emissions, and power usage effectiveness (PUE). Details on backup power, including types, capacity, fuel storage, operating hours, and associated emissions, must also be provided. Additionally, data centers must disclose property setback requirements in their operating State. These disclosures are submitted to either an electing State or directly to the Secretary of Energy and the EPA Administrator, who are then responsible for compiling and publishing an annual public report. The Director of the Office of Management and Budget is tasked with establishing similar disclosure standards for federal and dual-use data centers, balancing transparency with national security concerns. Crucially, the bill prohibits non-disclosure agreements from preventing or penalizing required disclosures , rendering such provisions void and unenforceable. To ensure compliance, the legislation establishes civil penalties for violations, with negligent failures incurring fines of up to $50,000 per day and knowing violations or false reports facing penalties of up to $100,000 per day. Electing States are also empowered to enforce these provisions. Finally, the Secretary of Energy and the EPA Administrator are directed to jointly promulgate regulations within 180 days to standardize disclosure formats and submission procedures.