Moreno Bill: 100% Tax on State Incentives for 100 MW AI Data Centers - CRE AI Briefing, Oct 16, 2026

AI campus pro formas built on sales tax exemptions and property tax abatements face a new federal threat: Sen. Bernie Moreno's RECLAIM Act would levy an excise tax equal to the full value of any state or local incentive for campuses with 100 MW or more of contracted peak power, and bar federal incentives outright. In Denton, Texas, a 4-0 council vote ended by-right data centers, adding a specific use permit, a 300-foot setback and up-front PUC and ERCOT approvals, with an Oct 27 hearing on a 90-day moratorium. Subsidy and entitlement for AI data centers are both getting harder to underwrite.

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Sources:
https://www.politico.com/news/2026/10/15/moreno-data-center-incentive-tax-bill-01120599
https://www.moreno.senate.gov/wp-content/uploads/2026/10/Data-Center-Bill.pdf
https://www.forth.news/lists/ussen-moreno/Cg4b9yJsf22mQua7TPUgD
https://focalnews.org/politics/ohio-senators-reclaim-act-would-erase-public-incentives-for-data-centers
https://dentonrc.com/news/council-amends-development-code-to-make-it-tougher-to-build-a-data-center-in-denton/article_ea8be9ab-c200-4f86-a3ff-8e4971008b4e.html
https://denton.city/article/data-centers-now-need-a-council-approved-permit-after-a-4-0-vote-and-one-application-was-already-turned-away
https://txgazette.com/articles/denton-votes-4-0-to-require-council-permit-for-data-centers