DeWine halts new sales-tax breaks for data centers
Ohio Governor Mike DeWine has paused new sales-tax breaks for data centers while lawmakers study their financial impact, citing $1.57 billion in exemptions last year—far exceeding initial projections. The move follows legislative scrutiny and a vetoed attempt to eliminate the exemption last summer, with existing breaks for companies like Amazon, Google, Microsoft, and Meta remaining unaffected.
Ohio Governor Mike DeWine announced on Wednesday that the Ohio Tax Credit Authority will halt consideration of new sales-tax break requests for data centers until state lawmakers complete their review of the industry’s growth. The decision comes after data revealed the state provided nearly $1.57 billion in sales-tax exemptions for data center equipment and construction materials in 2024—12 times higher than initial estimates. Local sales-tax breaks for data centers totaled an additional $446.3 million last year, according to Ohio Department of Taxation figures. DeWine acknowledged the importance of data centers to Ohio’s technology-driven economy, noting they help attract businesses and jobs. However, he emphasized the need for a thorough assessment before approving new exemptions. A joint legislative committee in Columbus began reviewing the issue with its first hearing on Wednesday. The governor’s pause does not affect existing tax breaks for companies such as Amazon, Google, Microsoft, and Meta. The Ohio Tax Credit Authority will still consider a pending request at its June 1 meeting, but no new applications will be approved. Last summer, lawmakers attempted to eliminate the exemption in a budget bill, but DeWine vetoed it, citing the economic benefits of data center projects.
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