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2h ago

DeWine Pauses New Data‑Center Sales‑Tax Exemptions

A legislative and tax-review will examine soaring exemption costs, infrastructure strain plus terms for future incentives before new breaks resume.

FILE - The Portsmouth Gaseous Diffusion Plant, a decommissioned uranium enrichment plant, is visible after the U.S. Department of Energy announced a new data center at the site March 20, 2026, in Piketon, Ohio. (AP Photo/Joshua A. Bickel, File)
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FILE - Gov. Mike DeWine, R-Ohio, arrives to an event at the National Governors Association Winter Meeting on Feb. 19, 2026, in Washington. (AP Photo/Allison Robbert, File)
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Overview

  • Gov. Mike DeWine ordered the Ohio Tax Credit Authority to stop taking new sales‑and‑use tax exemption requests for data centers after its next meeting, a move announced Wednesday that does not block construction or cancel existing exemptions.
  • The Authority will still consider already filed requests, including one scheduled for its June 1 meeting, while a new joint legislative committee has started hearings to gather facts on the industry.
  • Ohio Department of Taxation figures show exemptions jumped far above prior estimates, reaching roughly $554 million in 2024 and about $1.57–1.6 billion in 2025, numbers first highlighted in recent reporting that prompted the review.
  • Lawmakers and regulators are focusing on how to assign the costs of grid upgrades and water use to large data‑center users, with utility officials warning buildout can outpace transmission upgrades and industry groups saying operators will cover incremental costs.
  • The pause raises political and economic stakes for Ohio: local opposition and a citizen drive to place a statewide ban on the ballot are pressing lawmakers, while business groups warn a prolonged halt could weaken the state’s competitiveness for future projects.