Local Control Protection Act
- Sponsor
- Rep. Bresnahan, Robert P. [R-PA-8]
- Committees
- Judiciary Committee (primary)
- Last action
- Jun 11, 2026
Bottom line
This bill empowers local governments in regulating data center development and ties federal tax incentives for data centers to local community benefit and workforce commitments.
What it actually does
This bill aims to strengthen local government authority over data center development by removing federal court jurisdiction for challenges to local zoning denials and prohibiting federal agencies from approving permits if a developer is actively challenging such a denial. Additionally, it conditions federal tax credit eligibility for data centers on the execution and public filing of legally enforceable community benefit agreements and local workforce utilization plans.
Proponents argue
Supporters argue the bill restores essential local control over land use decisions, preventing large corporations from overriding community wishes regarding significant infrastructure projects like data centers. They contend it ensures that communities hosting these resource-intensive facilities receive tangible benefits, such as local tax revenue, necessary infrastructure improvements, and job opportunities for local residents, making federal tax incentives more equitable and accountable.
Opponents contend
Opponents might argue that the bill creates unnecessary regulatory hurdles and uncertainty for data center development, potentially hindering technological advancement and economic growth. They could also claim it introduces a patchwork of local regulations that makes it difficult for developers to plan and invest efficiently, ultimately driving up operational costs for data services and potentially impacting consumers.
The bill is concise and clearly written, allowing an informed reader to understand its provisions and implications within a short timeframe.
Section 2
Federal Court Jurisdiction Limitation on Local Zoning
This section removes the jurisdiction of United States federal courts to hear any legal challenges against a local government's decision to prevent the development of a 'covered data center.' This applies only if the local government's determination was made by a recorded vote and supported by documented findings. Essentially, it means local zoning denials for data centers cannot be appealed in federal courts.
Supporters argue
Supporters argue this provision is crucial for upholding the principle of local control, allowing communities to make decisions about land use that directly impact their residents without fear of being overturned by federal courts. It prevents powerful corporations from using legal challenges to bypass local democratic processes and community wishes.
Critics contend
Opponents might contend that this provision could lead to arbitrary or politically motivated local zoning decisions, potentially stifling economic development and technological infrastructure growth. They may argue that federal courts provide an essential check against local abuses of power or discriminatory practices, which this bill removes.
Tradeoffs
This provision balances local democratic control over land use with the potential for uniform application of development standards and the broader economic interests associated with national data center infrastructure.
Section 3
Federal Permit Prohibition for Challenging Developers
This section prohibits any federal agency from approving permits related to the construction or operation of a 'covered data center' if the owner, operator, or developer of that data center has initiated or is maintaining a legal action in any court to challenge or overturn a zoning denial issued by a local government. This prohibition applies only if the local zoning denial was made by a recorded vote with documented findings.
Section 4, amending the Internal Revenue Code
Mandatory Community Benefit Agreements for Tax Credit Eligibility
This section amends the Internal Revenue Code to make federal tax credits for data centers conditional. To receive any federal tax credit, a data center developer must execute and publicly file a legally enforceable agreement with the chief executive of the local government where the data center is located. This agreement must cover local tax liabilities, infrastructure mitigation (addressing road, water, stormwater, and utility impacts), and environmental/noise monitoring protocols. It also requires a 'Local Workforce Utilization Plan' detailing efforts to recruit local workers, partner with local education/training programs, and prioritize local contractors.
Section 5
Definition of 'Covered Data Center'
This section defines what constitutes a 'covered data center' for the purposes of this Act. It includes either a single data center with a power demand of 20 megawatts or more, or any group of facilities under common ownership/control that primarily process, store, and transmit digital information, are located on a contiguous or proximate site within the same municipality or county, and collectively have a power demand of 20 megawatts or more. This definition determines which data centers are subject to the bill's provisions.