Ohio suspends data center tax break as tech firms face pressure to pay the cost to power AI
The pause follows a review of tax breaks that reached nearly $1.6 billion last year, far above state projections, officials said.
- On Wednesday, Governor Mike DeWine ordered a temporary pause on new tax exemptions for data centers, effective June 1, citing the need to review the industry's rapid expansion and rising costs.
- The suspension follows a dramatic surge in tax breaks, which cost Ohio $1.5 billion last year, far exceeding the $135 million originally forecasted by state projections.
- Lawmakers expressed shock at the discrepancy; State Representative David Thomas noted lost revenue reached $1.6 billion, while State Senator Kent Smith called it "the worst tax break in Ohio's history."
- Dorsey Hager, executive secretary-treasurer of the Columbus/Central Ohio Building and Construction Trades Council, expressed concern the pause could cause developers to reconsider pending projects affecting union work.
- Residents are pushing a citizen-led referendum for November's ballot to ban hyperscale data centers, facing a July 1 deadline for more than 400,000 signatures, as the gubernatorial race between Republican Vivek Ramaswamy and Democratic nominee Amy Acton intensifies.
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State axes data center tax break after forecasts were off by a billion dollars * WorldNetDaily * by Arianna Hooker, Daily Caller News Foundation
Source link Ohio Republican Gov. Mike DeWine is pausing a tax break for data centers after it end up costing more than $1 billion more than lawmakers expected. The Ohio Department of Taxation forecasted that the state would give up $136 million in tax revenue in 2025, but it ended up being around $1.5 billion,
$136 Million Or $1.5 Billion? Ohio Freezes Data Center Tax Breaks After Math Goes Missing - Tampa Free Press
Ohio Governor Mike DeWine ordered a sudden halt Thursday to new tax exemptions for data centers after the state discovered the program cost over $1 billion more than anyone predicted. The Ohio Department of Taxation originally projected the state would lose $136 million in tax revenue for 2025. Instead, the actual cost soared to roughly […] $136 Million Or $1.5 Billion? Ohio Freezes Data Center Tax Breaks After Math Goes Missing
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Ohio axes data center tax break after billion-dollar forecasting error
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DeWine Announces Tax Exemption Pause on Data Centers
As lawmakers study the impact of data centers in Ohio, Republican Gov. Mike DeWine on Wednesday announced a pause in consideration of new tax exemptions for data centers. Despite the directive, DeWine’s statement praised data centers, including how they have contributed to Ohio’s success. “Data centers are a critical component to today’s technology-driven economy, which depends on the virtual, large-scale exchange of information. One of the reas…
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