DeWine abruptly pauses a major tax break for data centers in Ohio
Ohio Governor Mike DeWine has announced a pause in the state's sales tax exemption program for data centers. This decision follows a report revealing the tax break cost Ohio $1.6 billion, significantly more than the initial estimate of $136 million. A newly formed legislative committee will study the growth of data centers and the program's impact.
Ohio Governor Mike DeWine announced a pause in the state's sales tax exemption program for data centers after a report by Signal Ohio revealed the tax break cost the state $1.6 billion, eleven times the original estimate for 2025. The exemption, which allows data centers meeting certain conditions to avoid Ohio's 5.75% sales tax, also cost localities an additional $166.8 million.
Governor DeWine directed the chair of the Ohio Tax Credit Authority to halt consideration of new tax exemption requests while a newly formed legislative body, the General Assembly's Select Committee on Data Centers, studies the program's growth and impact. The committee, which met for the first time on Wednesday, will hear testimony from various stakeholders in the coming weeks. The pause on accepting new proposals will take effect after the committee's June 1 meeting, where an existing exemption request is scheduled for consideration.