,,ii #aaith ,,congress #b;d ,session ,s4 #efhi ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,october #ae1 #bjbf,mr4 ,moreno1 under authority of the order of the ,senate of ,september #cj1 #bjbf1 introduced the following bill2 which was ordered read twice and referred to the ,committee on ,finance ,a ,,bill ,to prohibit ,federal and ,state incentives for the development or commercial operations of data centers4 #a4 ,short title ,this ,act may be cited as the ,recapturing ,excessive ,corporate ,largesse through ,accountability and ,incentive ,measures ,act or the ,,reclaim ,act4 #b4 ,prohibition on incentives for covered data centers 7a7 ,no ,federal incentives ,a covered data center 7as defined in section #ejjj;,e7b7 of the ,internal ,revenue ,code of #aihf1 as added by subsection 7b77 shall not be eligible for any ,federal grant1 loan1 loan guarantee1 cooperative agreement1 tax credit or deduction1 exclusion1 exemption1 abatement1 or other form of ,federal financial assistance or tax incentive for the development or commercial operations of such covered data center4 7b7 ,excise tax on prohibited state and local incentives 7#a7 ,in general ,subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new chapter3 #ej;,b ,prohibited state and local incentives for data centers ,sec4 #ejjj;,e4 ,prohibited state and local incentives for data centers4 #ejjj;,e4 ,prohibited state and local incentives for data centers 7a7 ,in general ,in the case of any covered data center1 there is imposed a tax in an amount equal to #ajj percent of the amount of any prohibited ,state or local incentive received by the data center operator during the taxable year with respect to such data center4 7b7 ,definitions ,in this section-- 7#a7 ,artificial intelligence ,the term artificial intelligence has the meaning given such term in section #ejjb of the ,national ,artificial ,intelligence ,initiative ,act of #bjbj 7#ae ,u4,s4,c4 #idja74 7#b7 ,covered data center 7,a7 ,in general ,subject to subparagraph 7,b71 the term covered data center means any facility or integrated campus of facilities-- 7i7 that has or is designed to have a contracted peak power demand of not less than #ajj megawatts1 and 7ii7 within which not less than #ej percent of the installed compute accelerators are ,,ai accelerator chips attributed to artificial intelligence training1 fine-tuning1 or inference4 7,b7 ,regulations 7i7 ,in general ,not later than #a year after the date of enactment of this section1 the ,secretary 7in conjunction with the ,secretary of ,commerce7 shall promulgate regulations that define the term ,,ai accelerator chip for purposes of subparagraph 7,a77ii74 7ii7 ,required considerations ,in promulgating the regulations required under clause 7i71 the ,secretary 7in conjunction with the ,secretary of ,commerce7 shall consider whether the definition of the term ,,ai accelerator chip should include graphics processing units1 tensor processing units1 application-specific integrated circuits1 and other semiconductor devices designed primarily for artificial intelligence training or inference4 7iii7 ,adjustments ,the ,secretary 7in conjunction with the ,secretary of ,commerce7 may promulgate regulations-- 7,i7 adjusting the thresholds described in clauses 7i7 and 7ii7 of subparagraph 7,a7 for high-density facilities optimized for artificial intelligence1 and 7,,ii7 excluding de minimis computing sites sitting on the edge of those thresholds4 7#c7 ,data center operator ,the term data center operator means the person that enjoys the economic benefits from1 and bears a majority of the economic burdens related to1 ownership of the covered data center4 7#d7 ,prohibited ,state or local incentive ,the term prohibited ,state or local incentive means any ,state or local grant1 loan1 loan guarantee1 cooperative agreement1 tax credit or deduction1 exclusion1 exemption1 abatement1 or other form of ,state or local financial assistance or tax incentive for the development or commercial operations of a covered data center4 7c7 ,regulations and guidance ,not later than the date that is #ab months after the date of enactment of this section1 the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including any regulations or guidance for purposes of-- 7#a7 determining the value of any prohibited ,state or local incentive1 7#b7 coordinating the tax imposed under subsection 7a7 with any other relevant ,federal tax liability associated with a covered data center1 including rules to prevent double taxation or double counting with respect to any prohibited ,state or local incentive1 and 7#c7 the timing of recognition of a prohibited ,state or local incentive as received1 including rules addressing incentives received in installments or contingent on future performance4 4 7#b7 ,clerical amendment ,the table of chapters for subtitle ,d of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to chapter #ej;,a the following new item3 ,chapter #ej;,b--,prohibited state and local incentives for data centers 4 7c7 ,sense of ,congress ,it is the sense of ,congress that ,states and political subdivisions thereof should promptly repeal or reform any tax incentive programs that are specific to data centers in order to restore tax neutrality1 protect public revenues1 and eliminate distortions in business location decisions that disadvantage domestic manufacturing and other job-creating investments4 7d7 ,effective dates ,the provisions of this section1 and any amendment to the ,internal ,revenue ,code of #aihf made by this section1 shall take effect on the day after the date on which final regulations are issued by the ,secretary pursuant to section #ejjj;,e7c7 of the ,internal ,revenue ,code of #aihf 7as added by subsection 7b774 #c4 ,severability ,if any provision of this ,act or amendment made by this ,act or the application of such provision or amendment to any person or circumstance is held to be unconstitutional1 the remainder of this ,act and the amendments made by this ,act1 and the application of the provision or amendment to any other person or circumstance1 shall not be affected4