Introduction
In 2025, California is making another bold move toward clean tech. A newly proposed bill offers green energy tax credits for data centers, specifically targeting companies that adopt solar, battery storage, and AI cooling systems.
This blog explores the proposed California Clean Infrastructure Act of 2025, who qualifies, how to claim these credits, and what this means for AI, SaaS, and blockchain businesses.
Tax Code & Legislative References
- Cal. R&TC §23649.2 (proposed) – Green Infrastructure Credit for Data Centers
- IRS §48 (Investment Tax Credit) – Federal solar & clean tech tax credit
- California Senate Bill SB 2174 (2025) – In-progress bill creating the credit
What the 2025 Bill Proposes
If passed, SB 2174 would:
- Offer a 15% state credit for clean energy upgrades in CA data centers
- Include equipment like solar panels, lithium battery storage, eco HVAC
- Require at least 60% renewable sourcing for eligibility
- Allow carryforward for unused credits up to 5 years
Example: Blockchain Server Farm in Sacramento
Example: HashCore Inc., a blockchain data center in Sacramento, installs:
- $1.2M solar infrastructure
- $300K in lithium battery racks
If SB 2174 passes, they may qualify for:
- $225,000 California state credit (15% of $1.5M)
- $450,000 Federal Investment Tax Credit (30%)
Total savings: $675,000 in combined energy credits
Step-by-Step: How to Claim If the Bill Passes
- Confirm Eligibility Criteria
Must operate a data center or server facility within California. - Document Renewable Energy Upgrades
Include invoices, solar and HVAC specs, installer certifications. - Track Renewable Energy Percentages
60% of operational power must come from clean sources. - File with CA Franchise Tax Board
Credit form and application process TBD post-legislation. - Pair with Federal Credit (Form 3468)
Coordinate both credits in your annual filings.
Conclusion
With massive power usage and climate scrutiny, data centers are now a tax strategy frontier.
California’s 2025 energy credit may reward AI, blockchain, and SaaS firms for going green with state and federal synergy reaching 45% of project costs.
Call to Action
Considering solar, battery, or cooling upgrades to your server infrastructure?
Schedule a clean-tech tax review with Anshul Goyal, CPA, EA, FCA
Anshul can help you:
- Assess if your project qualifies under SB 2174
- Coordinate federal & CA clean energy tax credits
- Optimize timing of investment and carryforward use
Turn your clean energy spend into tax savings:
https://calendly.com/anshulcpa/
Anshul Goyal, CPA, EA, FCA
Anshul brings 15+ years of U.S. and international tax experience. He specializes in helping online sellers, foreign founders, and U.S. residents with IRS and multi-state compliance. Known for his deep knowledge in Shopify and Amazon seller tax strategy, Anshul has helped hundreds of entrepreneurs minimize taxes and scale legally.
Disclaimer
This blog is for informational purposes only and does not constitute legal or tax advice. Please consult a qualified tax professional regarding your individual tax situation.
Top 5 High-Searched FAQs for 2025
1. Is SB 2174 passed yet in California?
As of June 2025, the bill is still under review in the state senate.
2. What qualifies as a clean energy upgrade?
Solar panels, energy-efficient HVAC, batteries, and AI cooling systems.
3. Can startups with small data centers claim this credit?
Yes, there is no minimum infrastructure size as per current draft.
4. Can I claim both CA and federal credits?
Yes, if your upgrades qualify under both jurisdictions.
5. What happens if I don’t meet the 60% threshold?
You won’t qualify for the California credit under SB 2174.