DeWine pauses new data center tax exemption requests in Ohio
Ohio Governor Mike DeWine has directed the Ohio Tax Credit Authority to temporarily halt processing new data center tax exemption requests. This pause will allow the Ohio General Assembly's Joint Data Center Committee to study the statewide impact of data center growth and the benefits communities receive from tax exemptions. The action suspends new requests but does not ban data center development in the state.
Ohio Governor Mike DeWine announced a directive pausing the consideration of new data center tax exemption requests by the Ohio Tax Credit Authority. The Governor stated this action is intended to provide time for the Ohio General Assembly's Joint Data Center Committee to thoroughly study the rapid growth of data centers across the state.
The committee's review will focus on understanding the local impacts of data center development and evaluating the economic benefits communities gain when tax exemptions are granted. Data centers that have previously received sales and use tax benefits in Ohio have reported a substantial total capital investment of $27.2 billion by 2025, according to DeWine's office.
The Ohio Tax Credit Authority will cease accepting new tax exemption proposals after its upcoming scheduled meeting, though an existing request is expected to be reviewed at that session. Governor DeWine clarified that this directive only suspends new tax exemption applications and does not impose a ban on data center development in Ohio. He emphasized his support for the General Assembly's work to gather facts on the issue, believing a pause is appropriate during this comprehensive review.