Bill > S4825

This bill, titled the "American A.I. Sovereign Wealth Fund Act," proposes to amend the Internal Revenue Code of 1986 to establish an excise tax on "systemically important AI activity" conducted by "applicable AI companies," which are defined as corporations or partnerships with over $200 million in gross receipts from AI data centers, AI computing infrastructure, AI services, or advanced robotics. The tax is structured such that the Secretary of the Treasury will receive 50% of the outstanding equity interests of the applicable AI company, effectively transferring ownership to the government. These collected equity interests will then be transferred to a newly established "American A.I. Sovereign Wealth Fund," managed by an "Independent Commission for Democratic AI," whose commissioners will be appointed by the President and confirmed by the Senate, with specific qualifications to ensure diverse representation and prevent conflicts of interest. The Fund's assets are intended to be used for direct payments to the American people and to support a decent standard of living, including healthcare, education, and housing, with annual distributions set at 5% of the Fund's average market value. Additionally, the bill mandates that applicable AI companies undergo "structural separation," meaning they must operate solely as AI businesses, without engaging in other commercial activities or sharing officers and directors with non-AI entities, within 90 days of the bill's enactment or upon meeting the definition of an applicable AI company. The bill also includes provisions for information reporting on purchases from AI businesses and addresses rules for expatriated entities to prevent them from avoiding these new tax and structural requirements.