Advertising and AI taxes would fund training and worker support

The Labor Department would manage a fund that could support paid community-service placements. States receiving grants could enroll people age 18 or older. Service grants would require allocated funding and an approved state application. Host organizations would pay participants for service, training, and other required program activities. The wage floor would receive annual inflation adjustments starting in the first fiscal year beginning after enactment.

Large businesses meeting the revenue thresholds would pay a 5 percent tax on revenue from digital ads shown to U.S. users. Businesses would need more than $50 billion in worldwide revenue or more than $1 billion in U.S. revenue. They would also need more than $50 million in revenue from digital ads shown to U.S. users. Related businesses would be counted together under the bill's grouping rules. The tax would apply to tax years beginning after December 31, 2026.

People generating content through covered AI services would pay a tax beyond their annual exemption. The rate would be $1.10 per million processing units, with each unit defined as 10 kilobytes of data. Each user's first million processing units per calendar year would be exempt. Providers would collect the tax unless they choose to pay it for users. The tax would apply to covered services used after December 31, 2026.

Covered AI businesses would pay a 50 percent tax on taxable income above 40 percent of gross receipts. Coverage would include businesses with more than $100 million in total revenue that develop AI or met the AI electricity-use threshold in the prior tax year. It would also include businesses earning more than $100 million from providing computing for AI development or use. The electricity threshold would be more than 50 megawatts of average load during any 30 consecutive days or more than 400 million kilowatt-hours consumed for covered AI activities. The tax would apply to tax years beginning after December 31, 2026.

States would meet minimum rules for unemployment benefit duration and weekly payments. States would provide at least 26 weeks of benefits or a total allowance worth at least 26 weekly payments. Weekly payments would replace at least 75 percent of average weekly earnings in the worker's highest-paid quarter, capped at the state's maximum. The rules would apply to unemployment weeks beginning on or after state compliance or six months after council recommendations declaring an actual or likely major job-market disruption, whichever comes first.