Ohio lawmakers react to $1.5 billion in unexpected data center tax breaks
Ohio lawmakers are reacting to an unexpected $1.5 billion in tax breaks given to data centers, significantly exceeding initial state forecasts. Governor Mike DeWine has ordered a temporary pause on new exemptions, sparking bipartisan calls to make the pause permanent, while industry leaders defend the tax breaks as vital for the state's economic competitiveness.
The state of Ohio unexpectedly granted $1.5 billion in tax breaks to data centers last year, a figure more than tenfold the initial forecast of $135 million. This revelation has stunned lawmakers on both sides of the aisle.
In response, Governor Mike DeWine has ordered a temporary pause on new data center tax exemptions. This decision follows criticism against the Governor for vetoing a bill last year that would have eliminated these tax breaks.
The issue has reignited bipartisan calls within the legislature to make the temporary pause on exemptions permanent. However, leaders within the data center industry argue that their substantial investments in Ohio, totaling tens of billions of dollars, are contingent on these tax breaks, which they claim are essential for the state's economic competitiveness.
Governor DeWine stated his belief that pausing new exemptions is appropriate while the full impact of data center growth in Ohio is studied. Lawmakers are considering moving to override the Governor’s previous veto or passing a standalone bill in the Senate to eliminate the tax breaks, though the path forward remains unclear.