HR 9262

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IN THE HOUSE OF REPRESENTATIVES

June 11, 2026

Mr. Bresnahan introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To protect the authority of local governments to make zoning decisions regarding data center development, and to require community benefit agreements as a condition for Federal tax incentives.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Local Control Protection Act”.

SEC. 2. PROTECTION OF LOCAL GOVERNMENTS.

A court of the United States shall not have jurisdiction to hear any challenge to the determination of a unit of local government to preclude the development of a covered data center, if the determination was made by a recorded vote along with documented findings.

SEC. 3. FEDERAL AGENCY ACTION PROHIBITION.

No Federal agency may approve permits related to the construction or operation of a covered data center if the owner, operator, or developer of such covered data center has initiated or is maintaining a legal action in any court seeking to challenge, overturn, or otherwise override a zoning denial issued by a unit of local government with respect to that covered data center, if the determination was made by a recorded vote along with documented findings.

SEC. 4. COMMUNITY BENEFIT REQUIREMENT FOR TAX CREDIT ELIGIBILITY.

(a) In General.—Part IV of subchapter A of chapter 1 of subtitle A of the Internal Revenue Code of 1986 is amended by adding at the end the following new subpart:

“Subpart H—Community Benefit Requirement for Credits for Data Centers

“SEC. 54. COMMUNITY BENEFIT REQUIREMENT FOR CREDITS FOR DATA CENTERS.

“(a) In General.—No credit against the tax imposed by this chapter for any taxable year shall be allowed under this part to a taxpayer developing a covered data center (as defined in section 5 of the Local Control Protection Act) during such taxable year if such taxpayer does not include on their return of tax for such taxable year and make publicly available an executed legally enforceable agreement with the chief executive of the unit of local government in which the covered data center will be developed that includes terms related to local tax liabilities, infrastructure mitigation measures addressing road, water, stormwater, and utility impacts, environmental and noise monitoring protocols, and that is accompanied by a Local Workforce Utilization Plan that—

“(1) documents the good-faith efforts of the developer to recruit and hire workers from the region in which the covered data center is located before sourcing labor from outside the region;

“(2) identifies partnerships with registered apprenticeship programs, career and technical education centers, community colleges, and local workforce development organizations serving the region; and

“(3) demonstrates a preference for local contractors and subcontractors whenever qualified local firms are available. The Local Workforce Utilization Plan shall be publicly filed as part of the agreement required under this subsection and shall be updated annually for the duration of the construction period.

“(b) Related Party.—All persons which are treated as a single employer under subsections (a) and (b) of section 52 shall be treated as a single taxpayer for purposes of this section.”.

(b) Clerical Amendment.—The table of subparts for part IV of subchapter A of chapter 1 of subtitle A of such Code is amended by adding at the end the following new item:

subpart h. community benefit requirement for credits for data centers.

(c) Effective Date.—The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

SEC. 5. DEFINITION.

In this Act, the term “covered data center” means—

(1) a data center (as defined in section 453(a) of the Energy Independence and Security Act of 2007 (42 U.S.C. 17112(a))) with a power demand of 20 megawatts or more; or

(2) any group of facilities—

(A) under common ownership or control;

(B) the majority of which primarily contain electronic equipment used to process, store, and transmit digital information;

(C) located on a contiguous or proximate site within the same municipality or county; and

(D) that, in the aggregate, have a power demand of 20 or more megawatts. <all>