
How are data centers taxed? Key strategies for structuring, incentives, and compliance.
As data centers power AI and cloud growth, they bring complex tax issues. Learn how to navigate tax, incentives, and structuring from day one.
December 2024
Treasury and the IRS on December 23 released technical corrections to the proposed regulations on the corporate alternative minimum tax (CAMT). Enacted in 2022, the Inflation Reduction Act (IRA) imposes a 15% minimum tax based on the adjusted financial statement income (AFSI) of an ‘applicable corporation.’ The CAMT is effective for tax years beginning after December 31, 2022. The proposed regulations were issued in September 2024.
The technical corrections address depreciation methods, tax-exempt adjustments, and Section 351 transactions, and cover AFSI adjustments, entity classification, and basis recalculations. The technical corrections also include adjustments to pages and paragraphs (e.g., correcting numerical references and terminology) and effective dates (e.g., certain provisions are retroactively clarified to tax years ending after December 31, 2019).
Comments on the technical corrections are due January 16, 2025.
As data centers power AI and cloud growth, they bring complex tax issues. Learn how to navigate tax, incentives, and structuring from day one.
Explore key state tax shifts, including the impact of the recently enacted federal tax changes, and planning insights tailored for financial services firms.
H.R. 1 contains significant tax law changes affecting taxpayers in the energy, utilities, and resources sectors with various effective dates.
H.R. 1, signed into law on July 4, 2025, used a scalpel, not a sledgehammer, to refine tax credits and incentives enacted by the Inflation Reduction Act (IRA) in 2022.