Data Center Community Reinvestment Act of 2026

The Data Center Community Reinvestment Act of 2026 creates a mandatory excise tax on the electricity consumed by large data centers. It distributes the collected tax revenues equally across five federal funds, including a newly created trust fund dedicated to energy technology loan guarantees.

This bill affects: * **Data centers** that meet both of the following criteria: 1. Primarily house electronic equipment used to process, store, or transmit digital information. 2. Have a peak power load or maximum rated power capacity greater than 1 megawatt. * **Federal trust funds and agencies** receiving the allocated tax revenue (including the U.S. Treasury, which will manage the new fund).

If enacted, the bill would institute the following changes: * **New Mandatory Tax:** Covered data centers must pay an excise tax of 1 cent ($0.01) for every kilowatt-hour of electricity they use. * **Creation of a New Trust Fund:** The U.S. Treasury must establish the "Energy Technology Trust Fund." Money in this fund will be earmarked to support loan guarantees provided under Title XVII of the Energy Policy Act of 2005. * **Revenue Distribution:** All tax revenue collected will be automatically split into five equal parts (20% each) and deposited into: 1. The Land and Water Conservation Fund 2. The Housing Trust Fund 3. The Hazardous Substance Superfund 4. The Highway Trust Fund 5. The Energy Technology Trust Fund * **Effective Date:** The tax applies to electricity consumed after the bill becomes law, and revenues will be allocated as soon as taxes are received.

* **Tax Rate:** 1 cent ($0.01) per kilowatt-hour of electricity used by qualifying data centers. * **Revenue Allocation:** Collected funds are split equally (20% each) among the five specified trust funds. * **Spending Authority:** Money placed into the new Energy Technology Trust Fund cannot be spent automatically; actual spending is subject to future appropriations approved by Congress.

* **Facility Size Threshold:** Facilities with a maximum rated power capacity or total peak power load of 1 megawatt or less are exempt from the tax. * **Primary Use Requirement:** Facilities are only taxed if their primary purpose is processing, storing, or transmitting digital data. * **Appropriations Requirement:** Funds in the Energy Technology Trust Fund require future congressional action before they can be disbursed. * **Unspecified Penalties:** The provided summary does not detail specific enforcement mechanisms or penalties for failing to pay the tax.

This bill places a 1-cent-per-kilowatt-hour tax on electricity used by large data centers (over 1 megawatt in capacity) and splits the revenue evenly among five federal programs, including a new Treasury fund aimed at supporting energy technology loans.