Yesterday, the U.S. House of Representatives’ Energy and Commerce Committee released its draft reconciliation bill. This bill, which will go through markup today, includes the “Artificial Intelligence and Information Technology Modernization Initiative.” The Committee proposes a 10-year moratorium on states and political subdivisions “enforc[ing] any law or regulation regulating artificial intelligence models, artificial intelligence systems, or automated decision systems.”
While the term “regulating” is not defined, an exception within the provision implies the proposal will limit state and local taxation of AI unless the tax is “imposed in the same manner on models and systems, other than [AI], that provide comparable functions to [AI].” This prohibition is similar to the Internet Tax Freedom Act’s ban on “discriminatory taxes” (which is defined differently).
We will continue to monitor the proposed bill.