Key facts
- The bill is named the Recapturing Excessive Corporate Largesse through Accountability and Incentive Measures Act, or RECLAIM Act.
- It would tax loans, grants, cooperative agreements, tax deductions, credits, and abatements given to covered data centers.
- The bill follows a similar proposal from Senator Josh Hawley last month.
Senator Bernie Moreno (R-Ohio) has introduced a bill that would impose a 100% tax on any state or local incentives provided to artificial intelligence-powering data centers. The proposed legislation, named the Recapturing Excessive Corporate Largesse through Accountability and Incentive Measures Act (RECLAIM Act), aims to address growing public concern over the proliferation of data centers across the nation. The bill would apply the tax to various forms of financial support, including loans, grants, cooperative agreements, tax deductions, credits, and abatements. This initiative follows a similar proposal by Senator Josh Hawley (R-Missouri) last month, which sought to prevent tech companies from utilizing tax breaks intended for low-income area investments for data center construction.