Politics
Ohio senator’s RECLAIM Act would erase public incentives for data centers
Sen. Bernie Moreno introduced legislation that would impose a 100% tax on state and local support for data centers built to power artificial intelligence. The proposal arrives as lawmakers respond to voter concerns about the facilities’ rapid expansion and public subsidies for them.
U.S. Sen. Bernie Moreno of Ohio introduced a bill Thursday, Oct. 15, that would impose a 100% tax on state and local incentives provided to covered data centers, including facilities that support artificial intelligence.
The proposal, called the RECLAIM Act, would apply to a range of public assistance: loans, grants, cooperative agreements, tax deductions, credits and abatements. A tax set at 100% of an incentive’s value could effectively eliminate the financial benefit of receiving that support.
Moreno’s bill comes amid growing voter unease about the nationwide expansion of data centers. The facilities require substantial computing infrastructure, and debates over their construction increasingly involve the use of public money to attract private investment.
The proposal follows a bill introduced last month by Republican Sen. Josh Hawley of Missouri. Hawley’s measure would prevent data center companies from using tax breaks designed to encourage investment in low-income communities.
The proposals signal a push among some Republicans to scrutinize public incentives for data centers, even as states and local governments weigh whether such projects merit subsidies. The available details of Moreno’s measure do not specify how “covered” data centers would be defined or provide estimates of the bill’s effects on local budgets and development plans.