Ohio
Senator Bernie Moreno Introduces Legislation Targeting RECLAIM Act Data Centers
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Key points
- Senator Bernie Moreno introduced legislation to eliminate tax incentives for AI data centers.
- The bill imposes a 100 percent tax on state and local subsidies provided to data centers.
- The Senate referred S. 5689 to the Senate Committee on Finance for review.
NewsWK — U.S. Senator Bernie Moreno introduced new federal legislation to curb public subsidies for massive technology facilities. Also, the Republican from Ohio introduced the RECLAIM Act data centers measure. He wants to ensure tax dollars do not fund private corporate expansion.
What does the Bernie Moreno data center bill mean for taxpayers?
The Bernie Moreno data center bill protects local communities from bearing the burden of corporate tax breaks, rather than subsidizing profitable corporate developments.
How would S 5689 restrict corporate subsidies?
Under S 5689, the federal government would effectively block public funding for computational facilities. Specifically, the Senate data center bill imposes a 100 percent federal tax on state and local financial incentives. Then, this rule applies to tax credits, grants, and abatements given to artificial intelligence facilities.
Why are Ohio data center incentives under review? RECLAIM Act Data Centers
Lawmakers are re-evaluating Ohio data center incentives and national tax breaks to protect government budgets. Consequently, the proposal includes several key provisions:
- A complete ban on new federal data center tax incentives.
- A full federal tax offset on state tax deductions and loans for AI projects.
- A resolution urging state leaders to repeal local tax abatements.
Senator Moreno introduced the bill in October 2026 without cosponsors. Meanwhile, the Senate referred the legislation to the Senate Committee on Finance for initial review. However, lawmakers have not scheduled a final vote on the measure yet.
This article was produced with the assistance of AI and reviewed by our editorial team.
Sources
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