Congress Passed 2025 Federal Budget Package
The legislation authorized broad tax measures that were later attributed to specific data center tax breaks.
Updated on Sept. 24, 2026 in Data Centers
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In 2025, Congress passed the nearly 900-page federal budget package known as the One Big Beautiful Bill Act. The legislation included broad business tax provisions, such as 100% depreciation, that apply across many sectors of the economy.
Why it matters
The bill became the subject of political debate after a think tank report claimed major technology firms avoided $68 billion in taxes using these provisions. No standalone vote occurred regarding data center-specific tax incentives.
The One Big Beautiful Bill Act introduced a 100% depreciation rate, allowing companies to deduct the full cost of capital investments immediately rather than over time. This measure applies to a broad range of businesses rather than being restricted to data centers.
The players
Tom Tiffany
U.S. Representative for Wisconsin who voted in favor of the 2025 federal budget package.
Microsoft
Global technology company specializing in cloud infrastructure, enterprise software, and AI platform development.
Meta
A social media conglomerate focusing on advertising, VR hardware, and large-scale data center infrastructure.
Alphabet
The parent company of Google, maintaining an extensive global network of data centers for search and cloud operations.
Amazon
A cloud computing and e-commerce giant that operates the AWS cloud platform, one of the world's largest consumers of data center capacity.
The details
The mechanism of the tax benefit relies on 100% depreciation, a tax accounting method where a company deducts the total cost of an asset in the year of purchase. By accelerating these deductions, businesses can significantly reduce their immediate taxable income. The provision was embedded within a 900-page federal budget package rather than enacted through legislation targeting specific industries.
Timeline
Congress passed the One Big Beautiful Bill Act in 2025.
Four tech companies allegedly avoided $68 billion in taxes in 2025.
The Wisconsin gubernatorial election occurs on November 3, 2026.
The Tech Race
The One Big Beautiful Bill Act established broad capital expenditure incentives that were later recontextualized as industry-specific tax relief. This story clarifies the scope of the 2025 legislation by distinguishing general tax provisions from the specific, unpassed tax breaks attributed to data centers in political discourse.
Taxpayers can view the political impact of the 2025 budget package through the lens of ongoing state-level election cycles, such as the upcoming gubernatorial race in Wisconsin. The legislative provisions remain in effect for corporate tax filings, influencing how companies structure infrastructure investments nationwide.
The takeaway
The 2025 budget package implemented broad depreciation rules that affected corporate tax liabilities across the economy. Observers should track upcoming political campaigns for continued usage of these tax figures in campaign messaging.
Further reading
For more on the infrastructure and fiscal environment surrounding large-scale computing, visit our Data Centers section.
Source note: This article includes information reported by Green Bay Press-Gazette.
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