Ohio halts data center tax breaks, review underway
Ohio Governor Mike DeWine has directed the state's Tax Credit Authority to halt new data center tax exemption requests. This decision is temporary and coincides with a review of data center growth by the Ohio General Assembly's Joint Data Center Committee. The action is a suspension of the ability to request tax exemptions, not a ban on data centers.
Ohio Governor Mike DeWine has issued a directive to the Ohio Tax Credit Authority, instructing them to pause the consideration of any new tax exemption requests from data centers. This statewide decision comes as the Ohio General Assembly's Joint Data Center Committee is actively reviewing the overall growth and impact of data centers across the state.
The governor clarified that this action is a suspension of the application process for tax benefits, not an outright ban on data center development in Ohio. The Ohio Tax Credit Authority will cease accepting new proposals after its next scheduled meeting, though one existing request will be processed at that meeting before the pause takes effect.
Data centers that have previously received sales and use tax benefits in Ohio have reported a substantial capital investment totaling $27.2 billion by 2025. Governor DeWine acknowledged the importance of data centers, stating they are a "critical component to today's technology-driven economy."
Amazon is currently developing a data center in Sidney, with another planned for Piqua, highlighting the ongoing data center activity within the Miami Valley region, even as the state reviews its incentive policies.