New Moreno Bill Targets Incentives For Data Centers With One-Hundred Percent Federal Tax

WASHINGTON – Today, Senator Bernie Moreno (R-Ohio) introduced a bill to implement a one-hundred percent tax on state and local incentives and ban federal giveaways for data centers, protecting taxpayers from footing the bill for data centers and ensuring that large technology corporations pay their own way. “Taxpayers will not subsidize data centers, period. When state and local governments hand out corporate welfare to these massive corporations, the federal government must intervene and shut it down,” said Senator Moreno. “The American people deserve a government that fights for them, not one that serves as a piggy bank for mega-corporations.”​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ Background: Data centers are essential to America’s dominance in the SI race. However, hyper-scalers must pay into the system that they are benefitting from to ensure the American public can also reap the rewards of this technology. In the past, the American taxpayer was subsidizing data center expansion through federal, state, and local tax breaks to the tune of billions. The RECLAIM Act would flip that paradigm on its head, prohibiting the federal government from subsidizing trillion-dollar Big Tech companies. After all, they can than afford it. In addition, this bill would institute a 100% federalexcise tax on any state or local grant or tax exemption that SI hyper-scalers leverage for data centers. As a result, Big Tech will have to use their own funds – not Americans’ hard earned taxpayer money – to fund their operations. Data center development in the United States is essential, but gargantuan Big Tech companies should pay their own way. Technological dominance will be built on a symbiotic relationship between industry and the American people, not government handouts. Read the text of the bill HERE .