A Republican tax bill unveiled late Sunday could prevent states from regulating artificial intelligence (AI) models for the next ten years.
The legislation, as detailed by the House Energy and Commerce Committee, bars the enforcement of any laws or regulations related to AI models, AI systems, or automated decision-making systems.
It includes exemptions aiming to “eliminate legal hurdles” and to “promote deployment or operation” of AI systems, along with easing procedures like licensing, zoning, and reporting.
However, it does permit state laws that do not impose significant restrictions related to design, performance, data processing, or civil liabilities on AI systems.
This bill emerges as Republicans gear up to support President Trump’s legislative agenda, highlighting AI innovation over regulation.
Shortly after his inauguration, Trump reversed an executive order from former President Biden that had established parameters for AI, also announcing his forthcoming “AI Action Plan.”
During his initial international trip in February, Vice President Vance criticized “overregulation” in the AI sector.
“We worry that excessive limitations could stifle transformative industries just as they’re gaining traction,” Vance stated at the AI Action Summit in Paris. “I hope to see deregulation be a key theme in discussions from this meeting.”
As federal regulations regarding AI remain in flux, states are eager to create laws around rapidly evolving technology.
According to the Business Software Alliance, last year state legislatures reviewed nearly 700 AI-related bills, with 113 eventually becoming law.
California initiated a contentious effort to regulate high-risk AI applications last year, which faced significant opposition from lawmakers.
State SB 1047 mandated that secure AI models undergo safety testing before release and held developers accountable for serious harm, but it was ultimately vetoed by California Governor Gavin Newsom.
