Mahoning County
For Mahoning County, see Ohio’s statewide laws and regulations below. No additional county-specific measures are listed in our research.
Mixed Data Center Policies
Ohio offers qualifying data centers significant sales-tax exemptions on equipment, subject to investment, payroll, reporting, and other conditions, while fees apply to participants. New exemption requests are paused, which may raise costs for new projects; data centers are not banned.
Incentives
Tax benefits2
The statute itself authorizes complete or partial sales-and-use-tax exemptions on computer data-center equipment at eligible facilities, through tax-credit-authority agreements. The exemption also covers delivery, installation and repair charges.
Defines the equipment eligible for the computer data center tax exemption for original and supplemental grantees, including incorporated building materials, electrical equipment, computers and servers.
Tax benefitsGrants and cash rebatesPreferential financing
Enacts a five-year property-tax exemption for qualifying electricity or natural-gas transmission property in priority investment areas; expands brownfield grants to priority investment area eligible projects; and enacts school-district energy-efficiency loans at two percent annual interest. These are energy-infrastructure, redevelopment and school benefits, not a data-center-specific incentive program.
current law · StatewideEstablishes fees for Ohio data-center tax-exemption agreements, effective February 8, 2021, requiring each original grantee to pay a $400 annual servicing fee and each added affiliated taxpayer to pay the same fee.Ohio Administrative Code Rule 122:28-1-05
What this means
This rule adds modest fees for data centers using Ohio’s tax-exemption program: a yearly servicing fee and fees for some amendments, with larger penalties for late reports. It applies only to businesses seeking the tax exemption, so the added costs are limited rather than a broad barrier to building or operating data centers.
Restrictions & requirementsHide restrictions & requirements6
Each original grantee must pay a servicing fee of $400 per year for the duration of the data center tax exemption agreement. A separate fee applies to each original grantee, and the same fee applies for each affiliated taxpayer added later.
A grantee requesting an amendment to an approved data center tax exemption project, including adding a supplemental grantee, must pay a $300 amendment fee, except when the amendment is determined to be ministerial.
An original grantee that does not submit a complete annual report or annual certification by March 1 must pay a $500 late fee for each month until the complete submission is received.
If an annual report or certification is incomplete, the grantee has 30 days after notice to provide supplemental information, but the monthly late fee continues during that 30-day period.
Failure to comply with reporting requirements constitutes a breach of the data center tax exemption agreement and may result, after any applicable cure period, in reduction of the exemption or termination of the tax exemption.
A tax exemption certificate will not be issued to an original or supplemental grantee with unpaid fees under the rule.
Benefits & exceptionsHide benefits & exceptions1
Certain amendments avoid the $300 amendment fee: adding affiliated taxpayers after initial approval is subject only to the applicable servicing fee unless the amendment also changes other agreement terms, and ministerial amendments are exempt from the amendment fee. The executive director's determination of whether an amendment is ministerial or substantive is final.
Sources
current law · StatewideDefines terms used in Ohio’s computer data center tax-exemption rules 122:28-1-02 through 122:28-1-05 and was effective February 8, 2021.Ohio Administrative Code Rule 122:28-1-01
What this means
The measure would offer eligible data centers a potentially large sales-and-use-tax break on equipment, including delivery, installation, and repairs (equipment exemption). But eligibility requires at least $100 million in investment and $1.5 million in annual employee compensation, plus ongoing operating and reporting commitments (investment and payroll thresholds). Overall, it is a substantial incentive for qualifying projects, with significant conditions.
People behind it
- Tax credit authority
Administers the computer data center tax exemption program, reviews applications, and may enter into exemption agreements.
- Director of development
Prescribes the application form, reviews applications, verifies compliance, and adopts rules necessary to implement the tax exemption.
- Tax commissioner
Reviews applications, administers direct payment permits and tax assessments, and consults on implementing rules.
Restrictions & requirementsHide restrictions & requirements11
An eligible data center must involve at least $100 million in capital investment at the project site, generally within three consecutive calendar years for projects beginning in or after 2015. (at least one hundred million dollars)
An eligible data center must pay at least $1.5 million in annual employee compensation subject to Ohio withholding for each agreement year beginning after the 25th month following execution of the agreement. (at least one million five hundred thousand dollars)
A tax exemption is not automatic: the applicant must apply to the Tax Credit Authority, and the application is subject to economic-impact reviews by the Tax Commissioner and the Director of Development before the authority may approve an agreement. (may apply to the tax credit authority)
Before approving an exemption, the authority must determine that the project will increase payroll and withholding, that the applicant is economically sound and able to complete the project, that it can maintain operations for the agreement term, and that the exemption is a major factor in the project decision. (the applicant is economically sound)
The data center must remain eligible and maintain operations throughout the agreement term. A cessation of operations is allowed only if operations resume within 18 months, and no exemption may be claimed for equipment purchased during the interruption. (resumes those operations within eighteen months)
Each taxpayer covered by the agreement must annually report employment, tax withholding, capital investment, and other information required by the Director of Development, and the director must review the reports and issue a verification certificate. (annually report to the director of development)
Covered taxpayers must submit tax returns identifying exempt equipment, other taxable purchases, the otherwise applicable tax, the exemption percentage, and the resulting tax due, and must include the director's verification certificate or provide it within the prescribed period. (shall submit to the tax commissioner a return)
A taxpayer may not relocate a substantial number of jobs from elsewhere in Ohio to the project site unless the Director of Development determines that the relevant county, township, or municipality was notified, subject to the statute's replacement-job exception. (may not relocate a substantial number of employment positions)
If a taxpayer fails to satisfy an agreement condition, the Tax Credit Authority may reduce the exemption percentage or shorten the exemption term, potentially effective in the current calendar year. (may amend the agreement to reduce)
If the data center no longer maintains required operations, the authority may terminate the agreement and require repayment of all or part of the taxes previously avoided on exempt equipment; the Tax Commissioner may then assess that amount without the ordinary assessment time limits. (may terminate the agreement and require)
A tenant or other co-location participant can receive the exemption only by electing to become a party to the tax exemption agreement and obtaining approval from the Tax Credit Authority. (elects to become a party)
Benefits & exceptionsHide benefits & exceptions10
Ohio may completely or partially exempt the sale, storage, use, or consumption of qualifying computer data center equipment from state sales and use taxes. The exemption may also cover delivery, installation, and repair charges for the exempt equipment. The tax exemption for computer data center equipment
The exemption can apply to equipment purchased by the applicant or by other taxpayers operating a computer data center business at the same project site, allowing multiple businesses to benefit under one agreement. any other taxpayer that operates a computer data center business at the project site
Eligible equipment is defined broadly to include equipment used to operate the data center, cooling systems, electrical generation and distribution equipment, and building or construction materials incorporated into the data center. computer data center equipment
The exemption may last for a term set by the Tax Credit Authority and may cover up to 100 percent of the otherwise applicable taxes. the amount of the exemption shall not exceed one hundred per cent
A data center qualifies as an eligible computer data center if the project satisfies both the required capital investment and employment-compensation thresholds: generally at least $100 million in investment and at least $1.5 million in annual employee compensation subject to Ohio withholding. at least one hundred million dollars at least one million five hundred thousand dollars
A taxpayer may join an existing data-center tax exemption agreement and receive the agreement's benefits while accepting its obligations. This permits tenants and other co-location participants to become supplemental grantees with authority approval. may be made a party to an existing agreement Supplemental grantee
Each taxpayer covered by an agreement receives a direct-payment permit, allowing it to pay applicable sales and use taxes directly to the Tax Commissioner and claim the agreed exemption through its tax returns. The tax commissioner shall issue a direct payment permit
A temporary shutdown does not automatically violate the operating requirement if operations resume within 18 months. However, the taxpayer cannot claim the exemption for equipment purchased during the shutdown period. resumes those operations within eighteen months
Capital leases are treated under generally accepted accounting principles, and a capital lease is included in the capital investment project for purposes of the data-center program. a capital lease is included in the capital investment project
Financial statements and other information submitted for the exemption program are generally exempt from Ohio public-records disclosure, subject to limited uses by state officials for program reports, tax administration, or court proceedings. are not public records
Sources
current law · StatewideAuthorizes Ohio’s tax credit authority to grant a complete or partial sales and use tax exemption for qualifying computer data center equipment, including delivery, installation, and repair charges, at eligible centers effective September 30, 2025.Ohio Revised Code § 122.175
What this means
The statute provides substantial but conditional equipment-tax savings for eligible data centers. Investment, payroll, operating, reporting, and approval requirements limit eligibility; the October 1, 2025 cutoff was vetoed. A separate 2026 administrative pause affects consideration of new requests and is tracked as its own action.
People behind it
- Brian Stewart
Primary sponsor of the bill.
- Andrew O. Brenner
Senate cosponsor.
- Jerry C. Cirino
Senate cosponsor.
Show 51 more peopleShow fewer people
- Theresa Gavarone
Senate cosponsor.
- Terry Johnson
Senate cosponsor.
- George F. Lang
Senate cosponsor.
- Kristina D. Roegner
Senate cosponsor.
- Mark Romanchuk
Senate cosponsor.
- Adam C. Bird
House cosponsor.
- Gary Click
House cosponsor.
- Rodney Creech
House cosponsor.
- Jack K. Daniels
House cosponsor.
- Steve Demetriou
House cosponsor.
- Michael D. Dovilla
House cosponsor.
- Haraz N. Ghanbari
House cosponsor.
- Thomas Hall
House cosponsor.
- Marilyn John
House cosponsor.
- Riordan T. McClain
House cosponsor.
- Kevin D. Miller
House cosponsor.
- Melanie Miller
House cosponsor.
- Phil Plummer
House cosponsor.
- Nick Santucci
House cosponsor.
- David Thomas
House cosponsor.
- Josh Williams
House cosponsor.
- Bernard Willis
House cosponsor.
- Tom Young
House cosponsor.
- Tax credit authority
May approve, enter into, amend, or terminate agreements granting the tax exemption and administer compliance.
- Director of development
Administers the tax-exemption section, including application forms, reports, verification certificates, and implementing rules.
- Tax commissioner
Reviews applications, issues direct payment permits, receives tax returns, and assesses taxes or amounts owed as required.
- Chief of the Division of Wildlife
Approves trapper education and administers fishing-license rules and exemptions.
- Chief of the Division of Parks and Watercraft
Administers state-park and watercraft rules, permits, fees, and registrations.
- Director of Natural Resources
Approves specified parks and watercraft rules and determines and certifies foregone watercraft-registration fee revenue.
- Chief of the Division of Mineral Resources Management
Administers examinations, certifications, and related rules for mining positions.
- Chancellor of Higher Education
Administers higher-education requirements, including authorization standards, grants, loan repayment, institutional oversight, and reporting.
- Director of Health
Administers the second chance trust fund and receives and reports abortion-related data.
- Department of Children and Youth
Administers foster-youth, adoption, child-welfare, child-abuse-prevention, and preschool-program provisions.
- Director of Children and Youth
Adopts rules, forms, and procedures and administers specified child-welfare and prevention responsibilities.
- Public children services agencies
Receive and investigate child-abuse and neglect reports and perform specified child-protection and case-review duties.
- State Board of Education
Administers educator licensing, school certification, and related rules and actions.
- Department of Education and Workforce
Administers education programs, standards, assessments, data and reporting requirements, community-school oversight, and school funding.
- Department of Rehabilitation and Correction
Administers specified prison, transitional-control, and post-release-control provisions.
- Adult Parole Authority
Supervises offenders and administers specified post-release-control and transitional-control responsibilities.
- Division of Parole and Community Services
Licenses and oversees halfway houses and other residential centers and administers transitional control.
- Department of Job and Family Services
Administers specified child-support collection and data-match responsibilities.
- Office of Child Support
Collects, withholds, and deducts support payments under specified provisions.
- Division of Securities
Administers the Ohio investor recovery fund and restitution-assistance awards.
- Supreme Court Administrative Director
Processes specified county reimbursement requests for assigned-judge compensation.
- Treasurer of State
Administers the nonchartered educational savings account program, including accounts, fund disbursements, and compliance.
- Ohio Elections Commission
Hears complaints concerning campaign-related violations involving elections to the state teachers retirement board and school employees retirement board.
- Ohio Facilities Construction Commission
Administers school facilities assistance provisions and oversees related construction projects.
- Secretary of State
Administers election-related provisions, including election rules, ballot procedures, and voter-registration programs.
- Ohio Arts Council
Administers provisions concerning the Ohio poet laureate and regional arts and cultural districts.
- Auditor of State
Conducts audits required by the measure, including audits of school and higher-education entities.
- Office of Budget and Management
Consults on higher-education fiscal oversight and certifies fiscal circumstances relevant to conservator appointments.
Restrictions & requirementsHide restrictions & requirements13
To qualify for the sales-and-use-tax exemption, a project must make at least $100 million in investment at the site within the applicable period: six consecutive years for projects beginning in 2013, four years for projects beginning in 2014, or three years for projects beginning in or after 2015.
For each agreement year beginning on or after the first day of the 25th month, the project must pay at least $1.5 million in annual employee compensation subject to Ohio withholding to qualify for the exemption.
The exemption requires an application and review. The authority may approve it only after making specified findings, including that the project will increase payroll and withholding, the applicant can complete the project and maintain operations, and the exemption is a major factor in the project decision.
Exemption recipients must remain eligible and maintain operations during the agreement term. Operations may cease temporarily if resumed within 18 months, but equipment purchased during the shutdown does not qualify for the exemption.
Recipients must annually report employment, withholding, investment, and other required information for review of continued eligibility, and must obtain a verification certificate for their tax return.
Recipients must obtain a direct-payment permit and file returns accounting for purchases, the applicable exemption, and taxes due.
An agreement may prohibit relocating a substantial number of jobs from elsewhere in Ohio to the project site unless the required local authority notification and development-director determination are made. Moves confined to the project site and transfers where the original position is replaced are exceptions.
Recipients must waive limitations periods for assessments or adjustments arising from failure to comply with the agreement.
Rules may charge exemption recipients fees to cover administrative costs.
For failure to meet agreement conditions, the authority may reduce the exemption percentage or term. If the center no longer meets the continued-operations requirement, the authority may terminate the agreement and require repayment of some or all previously exempted taxes, after giving taxpayers an opportunity to explain.
Related HB 96 provision outside section 122.175: For data centers needing an air permit to install, the measure raises listed permit fees for sources including fuel-burning equipment, turbines and engines, process equipment, storage tanks, and fuel-dispensing facilities. For example, the listed fee for fuel-burning capacity under 10 million Btu per hour increases from $200 to $300.
Related HB 96 provision outside section 122.175: Owners of synthetic minor air facilities face higher annual fees through June 30, 2028, in addition to the existing $5,000 annual fee. For facilities emitting under 10 combined tons per year, the emissions-based fee increases from $170 to $255.
Related HB 96 provision outside section 122.175: State solid-waste transfer and disposal fees are extended through June 30, 2028; a data center incurs these charges if its waste is subject to the fees.
Benefits & exceptionsHide benefits & exceptions13
The Tax Credit Authority may grant a full or partial sales-and-use-tax exemption, up to 100%, for qualifying data-center equipment, equipment used to manage necessary electricity, incorporated construction materials, and related delivery, installation, and repair charges. The project generally must meet a $100 million investment threshold and, beginning in the agreement’s 25th month, an annual $1.5 million employee-compensation threshold subject to Ohio withholding; the authority must make required findings and sets the exemption’s percentage and term.
The sales-and-use-tax incentive can apply to projects involving acquisition, construction, renovation, expansion, replacement, or repair of a data center or its equipment, subject to the agreement’s eligibility requirements.
An additional taxpayer operating a data-center business at a project site may join an existing tax-exemption agreement and receive its benefits, but must also accept its obligations and meet the statutory requirements.
A taxpayer covered by a data-center agreement receives a direct-payment permit for remitting sales and use taxes directly to the tax commissioner. The permit does not itself exempt purchases not covered by the agreement.
A temporary shutdown does not breach the agreement’s operating requirement if operations resume within 18 months. Equipment purchased during the shutdown is not eligible for the agreement’s exemption.
Related HB 96 provision outside section 122.175: A data-center project that qualifies as an eligible project may receive development assistance, such as inducements, loans, loan guarantees, or payment of allowable acquisition, construction, renovation, and equipment costs. Eligibility depends on statutory criteria, including job creation or preservation and benefits to Ohio’s economic welfare; facilities consisting solely of point-of-final-purchase retail are excluded.
Related HB 96 provision outside section 122.175: A data-center project that independently qualifies as an innovation or research-and-development project may receive separate assistance, including inducements, loans, loan guarantees, or research-and-development tax credits, subject to the criteria for those project types.
Related HB 96 provision outside section 122.175: For a data-center project qualifying as a megaproject, a township zoning amendment concerning the project takes effect immediately upon adoption and is exempt from referendum procedures.
Related HB 96 provision outside section 122.175: Eligible commercial or industrial property in a community reinvestment area may receive a real-property-tax exemption for new construction or increased value from remodeling. The exemption may last up to 15 years generally, or up to 30 years for qualifying property owned or occupied by a megaproject operator or supplier. A written agreement is required before construction or remodeling, and school-board approval is generally required unless an exception applies.
Related HB 96 provision outside section 122.175: For a data center that is an air-permitted source, the measure bars requiring community air monitoring before issuing or renewing an air permit, and bars permit conditions requiring that monitoring unless the owner or operator agrees. It also limits additional monitoring requirements where another applicable rule already specifies monitoring.
Related HB 96 provision outside section 122.175: For an air-permitted data center, community air-monitoring data cannot support specified environmental enforcement actions and generally cannot be used in rulemaking or air-permit decisions unless the source’s owner or operator requests that use.
Related HB 96 provision outside section 122.175: The director must remove air-nuisance rules from Ohio’s state implementation plan and may not rely on those rules to implement or enforce federal ambient air-quality standards.
Applicants’ and recipients’ financial statements and other submitted information generally are not public records, subject to specified exceptions including official reports, court proceedings, and disclosure to the tax commissioner, who must preserve confidentiality.
Sources
- codes.ohio.gov
- content.govdelivery.com
- content.govdelivery.com
- www.legislature.ohio.gov
- codes.ohio.gov
- codes.ohio.gov
- search-prod.lis.state.oh.us
- www.legislature.ohio.gov
- www.legislature.ohio.gov
- www.legislature.ohio.gov
- codes.ohio.gov
- search-prod.lis.state.oh.us
- ohiosenate.gov
- codes.ohio.gov
- codes.ohio.gov
- www.legislature.ohio.gov
- ohiohouse.gov
- www.lsc.ohio.gov
current law · StatewideEstablishes remedies for noncompliance with data center tax exemption agreements under Ohio Administrative Code Rule 122:28-1-04, applying to original and supplemental grantees and effective February 8, 2021.Ohio Administrative Code Rule 122:28-1-04
People behind it
- Brian Stewart
Primary sponsor of House Bill 96
- Andrew O. Brenner
Senate cosponsor of House Bill 96
- Jerry C. Cirino
Senate cosponsor of House Bill 96
Show 26 more peopleShow fewer people
- Theresa Gavarone
Senate cosponsor of House Bill 96
- Terry Johnson
Senate cosponsor of House Bill 96
- George F. Lang
Senate cosponsor of House Bill 96
- Kristina D. Roegner
Senate cosponsor of House Bill 96
- Mark Romanchuk
Senate cosponsor of House Bill 96
- Adam C. Bird
House cosponsor of House Bill 96
- Gary Click
House cosponsor of House Bill 96
- Rodney Creech
House cosponsor of House Bill 96
- Jack K. Daniels
House cosponsor of House Bill 96
- Steve Demetriou
House cosponsor of House Bill 96
- Michael D. Dovilla
House cosponsor of House Bill 96
- Haraz N. Ghanbari
House cosponsor of House Bill 96
- Thomas Hall
House cosponsor of House Bill 96
- Marilyn John
House cosponsor of House Bill 96
- Riordan T. McClain
House cosponsor of House Bill 96
- Kevin D. Miller
House cosponsor of House Bill 96
- Melanie Miller
House cosponsor of House Bill 96
- Phil Plummer
House cosponsor of House Bill 96
- Nick Santucci
House cosponsor of House Bill 96
- David Thomas
House cosponsor of House Bill 96
- Josh Williams
House cosponsor of House Bill 96
- Bernard Willis
House cosponsor of House Bill 96
- Tom Young
House cosponsor of House Bill 96
- The authority
Administers the computer data center tax exemption remedies, including reducing or terminating exemptions and requiring refunds
- The director
Administers compliance actions, including notifying grantees and amending exemption agreements
- Grantor
Responsible for issuing or withholding tax exemption certificates under the exemption agreement
Restrictions & requirementsHide restrictions & requirements4
Data-center tax-exemption grantees must satisfy statutory minimums on time; failure allows the authority to terminate the exemption agreement and require repayment of all or part of the exemption claimed. Grantees are to satisfy the statutory minimums
During the exemption term, grantees must continue operating as an eligible computer data center, meet the specified investment target, and satisfy employment and payroll obligations, including creating and retaining full-time-equivalent employees and meeting new payroll targets. failed to meet the agreement metrics
If a grantee becomes noncompliant with those operating, investment, employment, or payroll requirements, the authority may reduce the exemption rate or term for the current or future years or terminate the exemption, after notice and an opportunity for the grantee to explain the noncompliance. The grantees will have the opportunity to explain the noncompliance
A grantee that fails to meet any condition or requirement in its exemption agreement may have the exemption percentage or exemption term reduced for equipment used, or to be used, at the data center; the reduction may apply in the current calendar year. the director may amend the exemption agreement to reduce the percentage of the exemption or term
Benefits & exceptionsHide benefits & exceptions3
Provides a data-center tax exemption under an exemption agreement, with tax-exemption certificates available to original and supplemental grantees. The grantees must satisfy statutory minimums and the agreement’s investment, operations, employment, and payroll requirements. (Ohio Administrative Code Rule 122:28-1-04: https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-04)
Creates procedural and proportional protections when a data center later fails to meet agreement metrics: the director must notify the grantees and give them an opportunity to explain, and the authority may consider market conditions, the grantee’s other Ohio operations, and each grantee’s responsibility for the failure before reducing or terminating the exemption. (Ohio Administrative Code Rule 122:28-1-04: https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-04)
Allows the director to amend an exemption agreement to reduce the exemption percentage or term, rather than necessarily terminating the entire exemption, when a grantee fails to satisfy an agreement condition; the reduction may apply in the current calendar year. (Ohio Administrative Code Rule 122:28-1-04: https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-04)
Sources
current law · StatewideEstablishes reporting, tax-compliance, and operational-notice requirements for Ohio computer data center tax-exemption grantees and has been effective since February 8, 2021 (Rule 122:28-1-03).Ohio Administrative Code Rule 122:28-1-03
What this means
The rules support a substantial tax benefit by exempting qualifying data-center equipment from sales and use taxes (“Exempt equipment includes”). The benefit is conditional: projects must meet investment and payroll minimums and follow annual reporting requirements, so the rules encourage development but add compliance obligations (“statutory minimums”; “annual report is due by March first”).
People behind it
- Tax Credit Authority
Administers the data center tax exemption agreement, including approving supplemental grantees and imposing remedies for noncompliance.
- Director of the Ohio Development Services Agency
Receives annual reports, oversees compliance, may amend exemption agreements, and administers related fees and remedies.
- Tax Commissioner of the Ohio Department of Taxation
Receives sales-tax exemption reports, processes direct-payment permits, and administers use-tax reporting and payment requirements.
Show 2 more peopleShow fewer people
- Ohio Development Services Agency
Receives servicing, amendment, and late-reporting fees associated with the data center tax exemption program.
- Ohio Department of Taxation
Administers the tax-reporting and use-tax requirements associated with the data center tax exemption.
Restrictions & requirementsHide restrictions & requirements12
To qualify for the data-center tax exemption, the project must meet statutory minimums of $100 million in capital investment and $1.5 million in annual payroll. Statutory minimums
The original grantee must submit a certified annual report by March 1 covering new payroll, new full-time-equivalent employees, capital investment, and other information reasonably requested by the director. The annual report is due by March first
If the original grantee relies on supplemental grantees to meet the statutory minimums, it must provide a compliance supplement explaining how it obtains and verifies their information when requested. Relying on supplemental grantees
Each grantee must file an annual sales-tax-exemption report by March 1, provide information needed for a direct-payment permit, and file use-tax returns even when no tax is due. Timely file the use tax returns
An original grantee must notify the director of a suspension of operations before the suspension when possible, or within five business days afterward, and must notify the director and tax commissioner within five business days after operations are re-established. Within five business days
Failure to meet the statutory minimums can result in termination of the tax-exemption agreement, denial of tax-exemption certificates, and repayment of all or part of the exemption claimed. May terminate the data center tax exemption agreement
During the exemption term, grantees must maintain eligible data-center operations, meet the investment target, and satisfy employment and payroll obligations; noncompliance may lead to a reduced exemption rate or term, or termination. Maintaining operations as an eligible computer data center
A grantee that violates an exemption-agreement condition may have the exemption percentage or term reduced, including for the current calendar year. Reduce the percentage of the exemption or term
Each original grantee must pay a servicing fee of $400 for each year of the exemption agreement; adding affiliated taxpayers after initial approval incurs the same fee for each added party. Four hundred dollars per year
Requests to amend an approved project, including to add a supplemental grantee, generally require a $300 fee, unless the amendment is ministerial. A three hundred dollar fee
A late or incomplete annual report or certification triggers a $500 fee for each month it remains outstanding; the grantee has 30 days after notice of deficiencies to provide supplemental information, but the monthly fee continues during that period. A late fee of five hundred dollars for each month
Tax-exemption certificates will not be issued to an original or supplemental grantee with unpaid fees under the rule. A tax exemption certificate will not be issued
Benefits & exceptionsHide benefits & exceptions7
Provides a sales-tax exemption for tangible personal property incorporated into a data center or used primarily to conduct its business, including qualifying building materials, infrastructure, machinery, wiring, cabling, and equipment. Contractor-consumed tools and equipment that are not incorporated are excluded. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-02#:~:text=Any%20building%20or%20construction%20materials)
Extends the exemption to property that generates, transforms, transmits, distributes, or manages electricity used to operate the data center business. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-02#:~:text=Any%20tangible%20personal%20property%20generating)
Covers core data-center technology and supporting systems, including computers, servers, networking equipment, racks, cabling, storage batteries, backup generators, uninterruptible power supplies, environmental-control equipment, redundant power equipment, and prewritten software used to operate, manage, or maintain the business. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-02#:~:text=Any%20computers%2C%20servers%2C%20routers)
Also exempts certain operational property, such as video monitors, security systems, and tools consumed by the grantee for installing or repairing data-center equipment. Property unrelated to the data-center business—such as exercise equipment, general office supplies, office furniture, janitorial equipment, and accounting, payroll, or human-resources software—is excluded. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-02#:~:text=Any%20other%20tangible%20personal%20property%20used)
Allows tenants and other co-location participants to become supplemental grantees under the tax-exemption agreement, subject to approval by the tax credit authority, and to provide data-center services to themselves or third parties. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-01#:~:text=Supplemental%20grantee%20means%20a%20tenant)
Counts a capital lease as part of the capital investment project when determining eligibility, consistent with generally accepted accounting principles. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-01#:~:text=a%20capital%20lease%20is%20included)
Provides for direct payment permits for original and supplemental grantees, subject to supplying the information requested by the tax commissioner on the permit application. (https://codes.ohio.gov/ohio-administrative-code/rule-122:28-1-03#:~:text=In%20order%20to%20process%20and%20provide)
Sources
current law · StatewideEstablishes rules for Ohio computer data center tax exemption agreements, with all five rules effective February 8, 2021, for original grantees and approved supplemental grantees such as tenants or other co-location participants.Ohio Administrative Code Chapter 122:28-1 (2021)
What this means
The measure offers a substantial incentive: eligible data centers may receive a full or partial sales and use tax exemption on qualifying equipment. The benefit is limited to projects meeting major investment and payroll thresholds, with annual reporting and possible penalties for noncompliance, so it supports development but does not come without conditions.
People behind it
- Brian Stewart
Primary sponsor of House Bill 96. Primary sponsor
- Andrew O. Brenner
Senate co-sponsor of House Bill 96. Senate co-sponsors
- Jerry C. Cirino
Senate co-sponsor of House Bill 96. Senate co-sponsors
Show 27 more peopleShow fewer people
- Theresa Gavarone
Senate co-sponsor of House Bill 96. Senate co-sponsors
- Terry Johnson
Senate co-sponsor of House Bill 96. Senate co-sponsors
- George F. Lang
Senate co-sponsor of House Bill 96. Senate co-sponsors
- Kristina D. Roegner
Senate co-sponsor of House Bill 96. Senate co-sponsors
- Mark Romanchuk
Senate co-sponsor of House Bill 96. Senate co-sponsors
- Adam C. Bird
House co-sponsor of House Bill 96. House co-sponsors
- Gary Click
House co-sponsor of House Bill 96. House co-sponsors
- Rodney Creech
House co-sponsor of House Bill 96. House co-sponsors
- Jack K. Daniels
House co-sponsor of House Bill 96. House co-sponsors
- Steve Demetriou
House co-sponsor of House Bill 96. House co-sponsors
- Michael D. Dovilla
House co-sponsor of House Bill 96. House co-sponsors
- Haraz N. Ghanbari
House co-sponsor of House Bill 96. House co-sponsors
- Thomas Hall
House co-sponsor of House Bill 96. House co-sponsors
- Marilyn John
House co-sponsor of House Bill 96. House co-sponsors
- Riordan T. McClain
House co-sponsor of House Bill 96. House co-sponsors
- Kevin D. Miller
House co-sponsor of House Bill 96. House co-sponsors
- Melanie Miller
House co-sponsor of House Bill 96. House co-sponsors
- Phil Plummer
House co-sponsor of House Bill 96. House co-sponsors
- Nick Santucci
House co-sponsor of House Bill 96. House co-sponsors
- David Thomas
House co-sponsor of House Bill 96. House co-sponsors
- Josh Williams
House co-sponsor of House Bill 96. House co-sponsors
- Bernard Willis
House co-sponsor of House Bill 96. House co-sponsors
- Tom Young
House co-sponsor of House Bill 96. House co-sponsors
- Ohio Development Services Agency
Agency responsible for administering the data-center exemption rules. Director of the Ohio development services agency
- Director of Development
Adopts rules implementing the exemption, receives annual reports, and reviews compliance. Adopt rules necessary to implement this section
- Tax Credit Authority
Reviews applications and may enter into exemption agreements and impose remedies. The tax credit authority may
- Tax Commissioner
Reviews applications and administers tax reporting and direct-payment permits for the exemption. The tax commissioner shall issue a direct payment permit
Restrictions & requirementsHide restrictions & requirements11
Eligibility requires at least $100 million in capital investment within the applicable period—three consecutive calendar years for projects beginning in or after 2015—and at least $1.5 million in annual employee compensation subject to Ohio withholding for each agreement year beginning on or after month 25. The investment and payroll thresholds
An exemption requires an application and tax-credit-authority approval; the authority reviews economic-impact assessments and must find, among other things, that the applicant is economically sound, can complete the project and maintain operations, and considers the exemption a major factor in its decision. The approval criteria
The center must remain eligible and maintain operations during the agreement. A temporary shutdown does not violate that requirement if operations resume within 18 months, but the grantees cannot claim the exemption on equipment purchased while operations are suspended. The operations and resumption conditions
Grantees may not relocate a substantial number of in-state employment positions to the project site unless the director determines that the relevant local legislative authority was notified. The relocation restriction
The original grantee must submit a certified annual report to the director by March 1, covering new payroll, full-time-equivalent employees, and investment payments; the director may also require additional information in a written request sent at least 60 days before the due date. If the original grantee relies on supplemental grantees to meet minimums, it must provide a compliance supplement when requested. The annual-report requirements
Original and supplemental grantees must file a yearly report to the tax commissioner by March 1 estimating the taxes that would have applied without the exemption, provide information needed for direct-payment permits, and file use-tax returns and pay applicable tax on nonexempt purchases—even when they have no tax liability for the period. The tax reporting and filing duties
The original grantee must notify the director of a suspension before it occurs if possible, or within five business days afterward if advance notice is not possible; resumption must be reported to both the director and tax commissioner within five business days. The suspension and resumption notice deadlines
Fees add costs: an original grantee pays $400 per agreement year; a request to amend an approved project generally costs $300, except for ministerial amendments; and an incomplete or late annual report or certification triggers a $500 monthly late fee. The grantee has 30 days after notice to supplement an incomplete filing, but late fees continue during that period. The fee and late-fee provisions
A tax-exemption certificate will not be issued to an original or supplemental grantee with unpaid fees. The unpaid-fee restriction
Failure to meet statutory minimums can lead to termination, denial of exemption certificates, and repayment of all or part of the exemption. Later failure to meet agreement metrics—including maintaining eligible operations, investment targets, or employment and payroll obligations—can result in a reduced exemption or termination. The available remedies
The exemption is limited to tangible property incorporated into the center or used primarily for data-center business; the rule excludes property not part of that business, such as general office furniture, office supplies, and accounting, payroll, or human-resources software. The equipment limits and exclusions
Benefits & exceptionsHide benefits & exceptions5
The tax credit authority may approve a complete or partial sales-and-use-tax exemption for computer data center equipment at an eligible center, including delivery, installation, and repair charges. Eligibility requires at least $100 million in project investment within the applicable period and, beginning after the agreement’s first 24 months, at least $1.5 million in annual employee compensation subject to withholding; the authority sets the exemption’s term and it cannot exceed 100%. The exemption may be complete or partial and is subject to investment and payroll thresholds.
The exempt equipment category includes construction materials incorporated into the center, property used to generate or manage its electricity, and computers, servers, networking, backup power, environmental-control, and related equipment used to operate the data center business. Contractor tools and equipment not incorporated into the center, and general office or other non-data-center property, are excluded. Covered property includes electricity-related equipment.
A tenant or other co-location participant may join an existing exemption agreement as a supplemental grantee, subject to authority approval. It then receives the agreement’s benefits and is bound by its obligations; it may provide data center services to itself or third parties. A taxpayer may be made a party to an existing agreement.
An applicant that stops operations during the agreement term does not violate the continuing-operations requirement if it resumes within 18 months. However, it and other participating taxpayers cannot claim the exemption on equipment purchases made during the shutdown. Operations may resume within eighteen months.
Each taxpayer subject to an agreement receives a direct-payment permit, allowing it to pay applicable sales and use taxes directly to the tax commissioner in accordance with the agreement. This is a payment mechanism, not an exemption from taxes otherwise due. The permit authorizes direct payment to the tax commissioner.
Sources
current law · StatewideOhio HB 15 reforms competitive retail electricity markets, utility regulation, power-siting procedures, renewable-energy requirements, and public-utility taxation, while repealing specified provisions of H.B.Ohio HB 15 (2025)
What this means
The measure may modestly help data centers by recognizing customer-side generation systems and allowing certain energy-intensive customer programs, which could support large electricity users (mercantile customer self-power systems). But it does not offer data-center-specific incentives or impose new data-center building rules, and it limits which utility-owned behind-the-meter facilities can qualify (facilities filed by March 31, 2025).
People behind it
- Roy Klopfenstein
Primary sponsor of House Bill 15
- Nickie J. Antonio
Senate co-sponsor of House Bill 15
- Willis E. Blackshear, Jr.
Senate co-sponsor of House Bill 15
Show 84 more peopleShow fewer people
- Andrew O. Brenner
Senate co-sponsor of House Bill 15
- Brian M. Chavez
Senate co-sponsor of House Bill 15
- Jerry C. Cirino
Senate co-sponsor of House Bill 15
- Hearcel F. Craig
Senate co-sponsor of House Bill 15
- Al Cutrona
Senate co-sponsor of House Bill 15
- William P. DeMora
Senate co-sponsor of House Bill 15
- Theresa Gavarone
Senate co-sponsor of House Bill 15
- Paula Hicks-Hudson
Senate co-sponsor of House Bill 15
- Stephen A. Huffman
Senate co-sponsor of House Bill 15
- Terry Johnson
Senate co-sponsor of House Bill 15
- Kyle Koehler
Senate co-sponsor of House Bill 15
- Al Landis
Senate co-sponsor of House Bill 15
- George F. Lang
Senate co-sponsor of House Bill 15
- Nathan H. Manning
Senate co-sponsor of House Bill 15
- Rob McColley
Senate co-sponsor of House Bill 15
- Sandra O'Brien
Senate co-sponsor of House Bill 15
- Thomas F. Patton
Senate co-sponsor of House Bill 15
- Bill Reineke
Senate co-sponsor of House Bill 15
- Michele Reynolds
Senate co-sponsor of House Bill 15
- Mark Romanchuk
Senate co-sponsor of House Bill 15
- Tim Schaffer
Senate co-sponsor of House Bill 15
- Kent Smith
Senate co-sponsor of House Bill 15
- Jane M. Timken
Senate co-sponsor of House Bill 15
- Casey Weinstein
Senate co-sponsor of House Bill 15
- Steve Wilson
Senate co-sponsor of House Bill 15
- Munira Abdullahi
House co-sponsor of House Bill 15
- Tim Barhorst
House co-sponsor of House Bill 15
- Adam C. Bird
House co-sponsor of House Bill 15
- Sean P. Brennan
House co-sponsor of House Bill 15
- Karen Brownlee
House co-sponsor of House Bill 15
- Gary Click
House co-sponsor of House Bill 15
- Rodney Creech
House co-sponsor of House Bill 15
- Jack K. Daniels
House co-sponsor of House Bill 15
- Levi Dean
House co-sponsor of House Bill 15
- Steve Demetriou
House co-sponsor of House Bill 15
- Michael D. Dovilla
House co-sponsor of House Bill 15
- Tex Fischer
House co-sponsor of House Bill 15
- Chris Glassburn
House co-sponsor of House Bill 15
- Michele Grim
House co-sponsor of House Bill 15
- Jennifer Gross
House co-sponsor of House Bill 15
- Derrick Hall
House co-sponsor of House Bill 15
- Thomas Hall
House co-sponsor of House Bill 15
- Mark Hiner
House co-sponsor of House Bill 15
- Adam Holmes
House co-sponsor of House Bill 15
- Marilyn John
House co-sponsor of House Bill 15
- Angela N. King
House co-sponsor of House Bill 15
- Matthew Kishman
House co-sponsor of House Bill 15
- Brian Lampton
House co-sponsor of House Bill 15
- Meredith R. Lawson-Rowe
House co-sponsor of House Bill 15
- Beth Lear
House co-sponsor of House Bill 15
- Brian Lorenz
House co-sponsor of House Bill 15
- Adam Mathews
House co-sponsor of House Bill 15
- Ty D. Mathews
House co-sponsor of House Bill 15
- Riordan T. McClain
House co-sponsor of House Bill 15
- Joseph A. Miller, III
House co-sponsor of House Bill 15
- Melanie Miller
House co-sponsor of House Bill 15
- Ismail Mohamed
House co-sponsor of House Bill 15
- Johnathan Newman
House co-sponsor of House Bill 15
- Beryl Brown Piccolantonio
House co-sponsor of House Bill 15
- Phil Plummer
House co-sponsor of House Bill 15
- Tristan Rader
House co-sponsor of House Bill 15
- Sharon A. Ray
House co-sponsor of House Bill 15
- Kevin Ritter
House co-sponsor of House Bill 15
- Monica Robb Blasdel
House co-sponsor of House Bill 15
- Bill Roemer
House co-sponsor of House Bill 15
- Elgin Rogers, Jr.
House co-sponsor of House Bill 15
- Jodi Salvo
House co-sponsor of House Bill 15
- Mark Sigrist
House co-sponsor of House Bill 15
- Anita Somani
House co-sponsor of House Bill 15
- Brian Stewart
House co-sponsor of House Bill 15
- Eric Synenberg
House co-sponsor of House Bill 15
- Cecil Thomas
House co-sponsor of House Bill 15
- David Thomas
House co-sponsor of House Bill 15
- Daniel P. Troy
House co-sponsor of House Bill 15
- Terrence Upchurch
House co-sponsor of House Bill 15
- Josh Williams
House co-sponsor of House Bill 15
- Bernard Willis
House co-sponsor of House Bill 15
- Tom Young
House co-sponsor of House Bill 15
- Ohio General Assembly
Legislative body that enacted House Bill 15
- Director of Development
Administers the brownfield remediation program and designates priority investment areas under the measure
- Public Utilities Commission of Ohio
Administers and enforces numerous utility, certification, rate, procurement, reporting, and transmission provisions under the measure
- Power Siting Board
Administers certification and accelerated review provisions for major utility facilities under the measure
- Ohio Facilities Construction Commission
Administers the school energy performance contracting loan fund and related loans under the measure
- Treasurer of State
Administers transfers and remittances involving the Solar Generation Fund under the measure
Restrictions & requirementsHide restrictions & requirements10
A data center that builds or relies on a major electric generating facility, high-voltage transmission line, or qualifying gas pipeline must obtain a certificate from the Ohio Power Siting Board. The thresholds are at least 50 megawatts for an electric generating plant, at least 100 kilovolts for a transmission line, and a gas pipeline over 500 feet long, more than nine inches in diameter, and designed for pressure above 125 pounds per square inch.
The Power Siting Board certificate process requires an application, environmental-impact and facility-need information, service of the application on affected governments and agencies, newspaper notice, an application fee, and potentially supplemental fees.
A major utility facility cannot receive a certificate unless the Power Siting Board makes findings concerning need, environmental impact, minimum adverse impact, grid consistency and reliability, legal compliance, public interest, agricultural-land impacts, and maximum feasible water conservation practices.
For a standard major-utility-facility application, the Power Siting Board must hold a public hearing and generally schedule it 45 to 60 days after receiving a compliant application; the Board must decide the application within 150 days after it is complete, although failure to decide within that period results in approval by operation of law.
A data center's utility-scale generation or transmission project may be subject to accelerated-review rules rather than ordinary review, but the project still requires a construction-certificate application and compliance with the Board's requirements. Certain short transmission lines, facilities primarily serving specified customers, certain natural-gas or waste-heat facilities, and facilities in designated priority investment areas have special accelerated-review procedures with 45- or 60-day decision deadlines.
An electric distribution utility may provide behind-the-meter generation service only using behind-the-meter generation facilities that were filed with the Public Utilities Commission under the former law by March 31, 2025, limiting access to that utility service for facilities not timely filed.
Costs of a utility's behind-the-meter generation service, its associated facilities, and stranded costs from closing those facilities or a customer's shutdown may not be recovered from retail customers that do not receive that service; the utility also may not offer direct associated inducements for contracting for the service.
A mercantile customer using a self-power system must receive the system's electricity directly on the customer's side of the meter without using an electric distribution utility's or cooperative's distribution or transmission system. The system may be located on adjacent land only if it connects directly to the customer.
A mercantile customer's self-power system does not eliminate charges for distribution or transmission service that the customer uses, so a data center using such a system may still incur those utility charges.
A self-generator's electricity is excluded from the certified-territory electric-service obligations only when the generation facility connects directly to the owner's side of the meter and delivers electricity without using an electric distribution utility's or cooperative's distribution or transmission system.
Benefits & exceptionsHide benefits & exceptions19
A municipality, township, or county may request designation of a brownfield or former coal mine as a priority investment area. The designation can make qualifying electricity- or natural-gas transmission property placed in the area exempt from taxation for the year after it is placed in service and the following four tax years.
The brownfield remediation program may award grants of up to $10 million for priority-investment-area projects involving environmental assessments, cleanup, demolition, site work, reuse planning, or development or operation of an energy-generation or battery-storage site. Grants may not pay for construction or operation of electric-generating infrastructure.
The Power Siting Board must create an accelerated review process for electric generating plants, transmission lines, and gas-pipeline infrastructure located in a designated priority investment area. The chairperson has 45 days to determine application compliance, and the board has 45 days after compliance; failure to act within those periods results in approval by operation of law.
The Power Siting Board must create an accelerated review process for a major utility facility located entirely on applicant-owned property, property leased for at least 25 years, or an easement or right-of-way. The board must decide within 60 days, with approval by operation of law if it does not act; the process is unavailable when additional third-party consent is required.
Certain smaller or customer-specific electric transmission lines, rebuilding projects, qualifying natural-gas facilities, and generating facilities using waste heat or natural gas must receive accelerated-review procedures. Applications not suspended for good cause within 90 days are automatically certified.
A public utility may provide behind-the-meter electric-generation service to an eligible customer if the generation facilities were filed with the Public Utilities Commission by March 31, 2025. Costs of that service and related facilities may not be recovered from retail customers who do not receive the service.
Mercantile customers may use a mercantile customer self-power system consisting of on-site or adjacent electric-generation or storage facilities. The system may be owned or operated by the customer, a group of customers, or another entity, and may serve one or more mercantile customers without using the electric distribution or transmission system.
The Public Utilities Commission may approve nondiscriminatory programs for all energy-intensive customers involving economic development, job growth or retention, interruptible rates, and improved transmission or distribution reliability.
Competitive suppliers may offer mercantile customers alternative billing arrangements, including daily, weekly, or milestone payments, online-only billing, and prepayment structures. The Commission may not prohibit electronic-payment requirements in those nontraditional agreements.
A mercantile customer may authorize an expedited return from a competitive supplier to an electric distribution utility's standard service offer. The utility must complete a certified request within three business days and may recover reasonable administrative costs through supplier fees.
Electric distribution utilities must provide a standard service offer of competitive retail electric services, including a firm supply of generation service, and must establish the offer through a market-rate competitive bidding process. This creates a required default supply option for customers if a supplier fails.
A supplier's failure, bankruptcy, loss of capability, inability to deliver, or loss of certification causes its customers, after reasonable notice, to default to the utility's standard service offer until they select another supplier.
An electric distribution utility may recover transmission, ancillary, congestion, and related costs through a reconcilable rider on distribution rates, including costs imposed by federal regulators or regional transmission organizations.
Each electric distribution utility must publish quarterly-updated distribution hosting-capacity maps by May 31, 2026. The maps must show capacity for new loads, distributed-energy-resource capacity, circuit and substation locations, queued loads or generation above one megawatt, and available circuit and substation capacity.
Entities owning in-state transmission facilities, other than regional transmission organizations, must create heat maps showing additional load capacity at major transmission lines and substations and the amount of localized generation that can be hosted. The maps must be published unless they are critical electric infrastructure information.
Transmission and generation applicants must evaluate cost-effective advanced transmission technologies, including grid-enhancing technologies and advanced conductors. The Power Siting Board must consider such technologies for transmission facilities, and the Public Utilities Commission may approve congestion-mitigation implementation plans and cost recovery.
No person may enter into a settlement to abandon, close, or shut down a base-load electric generating facility or a generating plant owned or operated by a public utility, helping preserve existing generation resources available to large electricity users.
Energy facilities using renewable resources may receive exemption from taxation on qualifying tangible personal property, and corresponding real property, subject to certification, construction-timing, county-approval, and other statutory requirements. Clean-coal, advanced-nuclear, and cogeneration facilities placed in service before January 1, 2021 may receive similar exemptions.
For tax year 2027 and later, certain taxable production and energy-conversion equipment first subject to Ohio taxation in 2027 or later, or equipment that is converted or repowered, is assessed at seven percent for qualifying electric, energy, and rural-electric companies. The reduced assessment applies to the specified utility or energy-company property, not automatically to ordinary data-center equipment.
Sources
current law · StatewideEffective September 30, 2025, Ohio HB 96 authorizes the tax credit authority to grant a partial or complete sales and use tax exemption for computer data center equipment, including related delivery, installation, and repair charges, at qualifying data centers.Ohio HB 96 (2025-2026)
What this means
The measure would preserve tax breaks for data centers with agreements already in place, but new agreements would have to be made before October 1, 2025. This could make later projects more expensive to build or expand, though it does not ban data centers or end existing agreements.
People behind it
- Tax credit authority
May approve complete or partial sales and use tax exemptions and enter into exemption agreements for eligible computer data centers.
- Director of development
Prescribes the application form, reviews proposed projects, verifies annual compliance, issues eligibility certificates, adopts implementing rules, and submits annual reports.
- Tax commissioner
Reviews applications for economic impact, issues direct payment permits, administers tax returns, and makes assessments for recovered taxes.
Show 1 more peopleShow fewer people
- Taxpayer proposing a capital improvement project
May apply to the tax credit authority for an exemption agreement for an eligible computer data center.
Restrictions & requirementsHide restrictions & requirements11
A data center must qualify as an eligible computer data center to receive the exemption. For projects beginning in or after 2015, taxpayers at the site must collectively make at least $100 million in qualifying capital-investment payments during three consecutive calendar years. Costs incurred before the date set by the tax credit authority and certain payments to related or consolidated entities do not count.
Beginning on or after the first day of the twenty-fifth month after the agreement is entered into, taxpayers operating at the site must collectively pay at least $1.5 million in annual employee compensation subject to Ohio withholding for each year of the agreement.
The exemption is not automatic. A taxpayer must apply to the tax credit authority, and the authority must review economic-impact information from the tax commissioner and the director of development before it may enter into an exemption agreement.
Before approving an agreement, the tax credit authority must determine that the project will increase payroll and Ohio income-tax withholding, that the applicant is economically sound and able to complete the project, that it can maintain operations for the agreement term, and that the exemption is a major factor in the project decision.
The agreement must require the computer data center to remain eligible and the applicant to maintain operations throughout the agreement term. If operations cease, the applicant may avoid violating this requirement only by resuming operations within eighteen months; no exemption may be claimed for equipment purchased during the shutdown period.
Each taxpayer subject to an agreement must annually report employment, tax withholding, capital investment, and other required information to the director of development, whose annual verification is required for the taxpayer to remain eligible for the exemption.
Taxpayers may not relocate a substantial number of employment positions from elsewhere in Ohio to the project site unless the director of development determines that the appropriate taxpayer notified the legislative authority of the county, township, or municipality from which the positions would be relocated. Transfers between political subdivisions generally count as relocations, subject to specified replacement and same-site exceptions.
Failure to satisfy an agreement condition may allow the tax credit authority to reduce the exemption percentage or shorten the exemption term, with the reduction taking effect in the current calendar year.
If the data center no longer satisfies the operating requirements, the tax credit authority may terminate the agreement and require repayment of all or part of the taxes previously avoided on exempt equipment. The tax commissioner may then assess the certified amount without the ordinary assessment time limits, provided the assessment is made within one year after certification.
Recipients may be charged administrative fees under rules adopted by the director of development, with the fees credited to the tax incentives operating fund.
Taxpayers covered by an agreement must use a direct payment permit and file returns reporting exempt equipment, other taxable purchases, the tax that would otherwise be due, the exemption percentage, and the resulting tax due. Each return must include the director of development's verification certificate, subject to a limited period for submitting a missing certificate.
Benefits & exceptionsHide benefits & exceptions7
The tax credit authority may fully or partially exempt the sale, storage, use, or consumption of qualifying computer data center equipment from Ohio sales and use taxes. The exemption also covers delivery, installation, and repair charges for that equipment.
Qualifying equipment includes property used to operate the data center business, cooling systems, equipment that generates or manages necessary electricity, and building and construction materials sold to contractors for incorporation into the data center.
An exemption agreement may cover qualifying equipment purchased by the applicant or by other taxpayers operating a computer data center business at the project site, allowing multiple operators at the site to benefit.
The exemption may be as high as 100 percent of the otherwise applicable sales and use taxes, with the tax credit authority determining the agreement's term.
Each taxpayer covered by an exemption agreement receives a direct payment permit allowing it to pay applicable sales and use taxes directly to the tax commissioner and claim the agreed exemption through its tax returns.
A taxpayer may join an existing exemption agreement and receive its benefits, provided it accepts all obligations and requirements of the agreement.
An applicant may temporarily cease operations without violating the agreement's operating requirement if it resumes operations within eighteen months. However, no exemption may be claimed for qualifying equipment purchased during the shutdown period.
Sources
current law · StatewideDefines the tangible personal property exempt under Ohio’s computer data center program, covering property incorporated into a data center or used primarily to operate its business, including infrastructure, servers, networking equipment, power systems, environmental controls, security systems, and related software and tools.Ohio Administrative Code Rule 122:28-1-02
What this means
The bill would stop new data-center sales-tax exemptions, removing a meaningful cost benefit for new projects. It would not ban building or operating data centers, but equipment such as servers and power systems is included in the exemption rules, so losing the exemption could make projects more expensive (covered equipment).
Timing
- Ends
- Oct 1, 2027
The measure prohibits new data center sales-tax exemption agreements after October 1, 2027; the tax credit authority may enter such agreements only before that date. Existing agreements and their obligations are not expressly terminated.
People behind it
- Senator Smith
Bill sponsor of S.B. 374
- Senator Blessing
Bill sponsor of S.B. 374
- Senator Antonio
Bill co-sponsor of S.B. 374
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- Senator Blackshear
Bill co-sponsor of S.B. 374
- Senator DeMora
Bill co-sponsor of S.B. 374
- Senator Weinstein
Bill co-sponsor of S.B. 374
- Ohio General Assembly
Legislative body identified as enacting the measure
- Development Services Agency
State agency responsible for filing and administering the data center tax exemption rules
- Director of Development
Official authorized to administer the data center tax exemption program and adopt implementing rules
- Tax Credit Authority
Authority empowered to enter into and administer data center tax exemption agreements
- Tax Commissioner
Official responsible for reviewing applications, issuing permits, administering tax returns, and assessing taxes under the measure
Restrictions & requirementsHide restrictions & requirements12
New data-center tax-exemption agreements may be entered into only before October 1, 2027, limiting access to the exemption after that date. before October 1, 2027
To qualify as an eligible computer data center, the project generally must involve at least $100 million in capital investment over three consecutive calendar years, or over four or six years for projects beginning in 2014 or 2013, respectively. at least one hundred million dollars
The data center must pay at least $1.5 million in annual employee compensation subject to Ohio withholding for each agreement year beginning on or after the first day of the 25th month after the agreement is entered. at least one million five hundred thousand dollars
The tax-credit authority may approve an exemption only if it finds that the project will increase payroll and withholding, the applicant is economically sound, the applicant can complete the project, the applicant can maintain operations for the agreement term, and the exemption is a major factor in the project decision. if the authority determines all of the following
An exemption agreement must require the data center to remain eligible and the applicant to maintain operations throughout the agreement term. A shutdown does not violate the requirement if operations resume within 18 months, but exempt equipment cannot be claimed for purchases made during the shutdown. resumes those operations within eighteen months
Each taxpayer covered by an agreement must annually report employment, tax withholding, capital investment, and other information required by the development director, and the director must verify compliance and issue a certificate. annually report to the director of development
Covered taxpayers may not relocate a substantial number of jobs from elsewhere in Ohio to the project site unless the development director determines that the affected county, township, or municipality was notified. Job movement between political subdivisions generally counts as relocation, subject to exceptions for movement confined to the site or replacement positions. may not relocate a substantial number of employment positions
If a taxpayer fails to satisfy an agreement condition, the tax-credit authority may reduce the exemption percentage or shorten the exemption term, with the reduction taking effect in the current calendar year. may amend the agreement to reduce the percentage of the exemption or term
If the data center no longer meets the operating requirement, the authority may terminate the agreement and require taxpayers to repay all or part of the taxes previously avoided through the exemption. terminate the agreement and require each such taxpayer to pay
The development director may charge exemption recipients fees to cover administrative costs. charged fees to cover administrative costs
The data-center equipment exemption does not cover contractor tools and equipment consumed rather than incorporated into the facility, such as hammers, bulldozers, cranes without operators, job trailers, portable toilets, generators, scaffolding, and vehicles. does not include tools and equipment that is considered to be consumed by the contractor
The equipment exemption does not cover property unrelated to the computer-data-center business, including exercise equipment, accounting, payroll, or human-resources software, general office supplies, office furniture, or janitorial supplies and equipment. does not include tangible personal property not part of the computer data center business
Benefits & exceptionsHide benefits & exceptions8
Allows the tax credit authority to grant a complete or partial sales and use tax exemption for computer data center equipment used at an eligible data center, including taxes on delivery, installation, and repair charges.
Permits an applicant to seek an exemption agreement covering equipment purchased by the applicant or by other taxpayers operating data center businesses at the same project site.
Allows an exemption agreement to specify the exemption percentage, its duration, and the date on which the exemption begins; the exemption may cover up to 100 percent of otherwise applicable taxes.
Provides a direct payment permit for each taxpayer covered by an agreement, allowing the taxpayer to pay applicable sales and use taxes directly to the tax commissioner and calculate the exemption through required returns.
Allows a taxpayer to join an existing data center exemption agreement and receive all benefits while assuming the agreement's obligations; each participating taxpayer may receive its own direct payment permit.
Permits an eligible data center to remain compliant if operations temporarily cease and resume within eighteen months, although no exemption may be claimed for equipment purchased during the shutdown.
Protects financial statements and other information submitted for the exemption from being public records, subject to specified uses by state officials for reports, tax administration, or court proceedings.
Requires annual review of each taxpayer's reported employment, withholding, capital investment, and other information, followed by a certificate verifying compliance and continued eligibility for the exemption.
Sources
current law · StatewidePauses new data-center tax-exemption requests while the General Assembly’s Joint Data Center Committee studies data-center growth and its effects, including community benefits from exemptions, following Governor DeWine’s direction.Ohio Governor DeWine pause on new data-center tax exemption requests
What this means
The measure pauses new requests for a state sales-and-use-tax exemption while a legislative committee studies data centers; it does not ban building or operating them, and the source gives no end date for the pause (pause its consideration of new data center tax exemptions). Because the exemption can cover some or all taxes on data center equipment, losing access could meaningfully raise costs for new projects (completely or partially exempt).
Timing
- Ends
- While the Ohio General Assembly’s Joint Data Center Committee studies the growth of data centers in Ohio
The pause applies to consideration of new exemption requests; the announcement gives no calendar expiration date. The Ohio Tax Credit Authority will stop accepting new proposals after its currently scheduled Monday meeting. The pause is while the committee studies data center growth.
People behind it
- Brian Stewart
Primary sponsor of House Bill 96.
- Andrew O. Brenner
Senate cosponsor of House Bill 96.
- Jerry C. Cirino
Senate cosponsor of House Bill 96.
Show 28 more peopleShow fewer people
- Theresa Gavarone
Senate cosponsor of House Bill 96.
- Terry Johnson
Senate cosponsor of House Bill 96.
- George F. Lang
Senate cosponsor of House Bill 96.
- Kristina D. Roegner
Senate cosponsor of House Bill 96.
- Mark Romanchuk
Senate cosponsor of House Bill 96.
- Adam C. Bird
House cosponsor of House Bill 96.
- Gary Click
House cosponsor of House Bill 96.
- Rodney Creech
House cosponsor of House Bill 96.
- Jack K. Daniels
House cosponsor of House Bill 96.
- Steve Demetriou
House cosponsor of House Bill 96.
- Michael D. Dovilla
House cosponsor of House Bill 96.
- Haraz N. Ghanbari
House cosponsor of House Bill 96.
- Thomas Hall
House cosponsor of House Bill 96.
- Marilyn John
House cosponsor of House Bill 96.
- Riordan T. McClain
House cosponsor of House Bill 96.
- Kevin D. Miller
House cosponsor of House Bill 96.
- Melanie Miller
House cosponsor of House Bill 96.
- Phil Plummer
House cosponsor of House Bill 96.
- Nick Santucci
House cosponsor of House Bill 96.
- David Thomas
House cosponsor of House Bill 96.
- Josh Williams
House cosponsor of House Bill 96.
- Bernard Willis
House cosponsor of House Bill 96.
- Tom Young
House cosponsor of House Bill 96.
- Mike DeWine
Directed a pause in consideration of new data center tax-exemption requests.
- Chair of the Ohio Tax Credit Authority
Directed to pause consideration of new data center tax-exemption requests.
- Ohio Tax Credit Authority
Administers the exemption agreements and was directed to pause consideration of new requests.
- Director of Development
Prescribes applications, reviews project impacts, verifies compliance, and adopts implementation rules.
- Tax Commissioner
Reviews applications and administers tax payments and assessments under the exemption program.
Restrictions & requirementsHide restrictions & requirements7
To qualify for the exemption, a data center project beginning in 2015 or later must make at least $100 million in capital investment at the site within three consecutive calendar years; projects beginning in 2013 or 2014 have six- or four-year periods, respectively. It must also pay at least $1.5 million in annual compensation subject to Ohio withholding for each agreement year beginning after month 24. These are conditions for the tax exemption, not general construction limits. Investment and compensation thresholds
The Tax Credit Authority may approve an exemption only after reviewing the project’s economic impact and determining that it will increase payroll and withholding, the applicant is financially sound and able to complete the project, it can maintain operations at the site, and the exemption is a major factor in its decision. Required authority determinations
An exemption agreement requires the center to remain eligible and maintain operations during the agreement. If operations cease, the applicant may resume within 18 months without violating that requirement, but cannot claim the exemption on equipment purchased during the downtime. Operations and the 18-month exception
A taxpayer covered by an agreement may not relocate a substantial number of jobs from elsewhere in Ohio to the project site unless the director determines the relevant local legislative authority was notified. A move is not treated as a relocation if the original position is replaced by another position. Job-relocation condition
Taxpayers receiving the exemption must annually report employment, withholding, capital investment, and other required information; the director reviews the reports and issues a verification certificate. Taxpayers must also file specified tax returns and include the certificate to claim the exemption, subject to a deadline to provide a missing certificate. Annual reporting and verification
If an agreement’s conditions are not met, the Tax Credit Authority may reduce the exemption’s percentage or term. If a center no longer meets the operating requirement, the authority may terminate the agreement and require repayment of all or part of previously exempted taxes; it must consider specified factors, including market conditions and the taxpayer’s responsibility. Possible reductions and repayment
Rules may require exemption recipients to pay fees to cover administrative costs. Permitted administrative fees
Benefits & exceptionsHide benefits & exceptions2
The Tax Credit Authority may grant a partial or complete sales-and-use-tax exemption for data-center equipment at an eligible center, including qualifying cooling and electrical equipment and construction materials; the exemption can also cover delivery, installation, and repair charges, and may last for a term set by the Authority. Eligibility generally requires at least $100 million in project investment over three consecutive calendar years for projects beginning in 2015 or later, plus at least $1.5 million in annual employee compensation subject to Ohio withholding beginning in the 25th month of the agreement. The Authority must also find, among other conditions, that the project increases payroll and withholding, the applicant can complete it and maintain operations, and the exemption is a major factor in the project decision. The Authority may completely or partially exempt qualifying equipment.
An operator can temporarily cease operations at an eligible center and resume within 18 months without violating the agreement’s continued-operations requirement; however, it cannot claim the exemption for equipment purchases made while operations are suspended. Resumes those operations within eighteen months.
Sources
pending · StatewideWould prohibit new sales- and use-tax exemption agreements for data centers after September 30, 2027, while retaining the existing exemption framework for agreements entered into by that date.Ohio SB 374 (2025-2026)
What this means
The bill would stop new data-center sales-tax exemption agreements after October 1, 2027, removing a potentially significant financial benefit for later projects (agreements may be made before October 1, 2027). It would not ban building or operating data centers, so the main effect is a meaningful added cost for projects that lose access to the exemption.
Timing
The measure functions as a moratorium on new data-center sales-tax exemptions by permitting agreements only before 2027-10-01. The prohibition on granting new exemptions has no stated expiration; existing agreements and their obligations remain.
People behind it
- Kent Smith
Primary sponsor of Senate Bill 374
- Louis W. Blessing, III
Primary sponsor of Senate Bill 374
- Nickie J. Antonio
Cosponsor of Senate Bill 374
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- Willis E. Blackshear, Jr.
Cosponsor of Senate Bill 374
- William P. DeMora
Cosponsor of Senate Bill 374
- Casey Weinstein
Cosponsor of Senate Bill 374
- Ohio General Assembly
Legislative body identified as enacting the measure
- Tax Credit Authority
Administers data center tax exemption agreements under the amended statute
- Director of Development
Administers applications, compliance reviews, certificates, rules, and annual reporting under the measure
- Tax Commissioner
Reviews applications, administers tax permits and assessments, and receives required taxpayer information under the measure
Restrictions & requirementsHide restrictions & requirements6
The tax credit authority may enter into a new agreement granting a data-center equipment sales and use tax exemption only before October 1, 2027; after that date, new exemptions cannot be granted, increasing the tax cost of qualifying equipment.
To qualify for the exemption before the deadline, a data center generally must involve at least $100 million in capital investment over three consecutive calendar years for projects beginning in or after 2015.
To qualify and remain eligible, data-center operators must collectively pay at least $1.5 million in annually taxable employee compensation beginning with the year that starts on or after the 25th month after the exemption agreement is executed.
An exemption agreement must require the data center to remain eligible and maintain operations throughout the agreement term. A temporary shutdown is permitted only if operations resume within 18 months; equipment purchased during the shutdown cannot receive the exemption.
Businesses receiving an exemption must submit annual employment, tax-withholding, capital-investment, and other reports, undergo annual verification by the development director, and provide verification certificates with their tax returns.
If an operator fails to satisfy the agreement, the tax credit authority may reduce the exemption percentage or term, and if the center no longer remains eligible, the authority may terminate the agreement and require repayment of some or all previously exempted taxes.
Benefits & exceptionsHide benefits & exceptions9
The tax credit authority may grant a complete or partial exemption from Ohio sales and use taxes for computer data center equipment used at an eligible data center, including charges for delivery, installation, and repair. The authority may enter new agreements only before October 1, 2027.
The exempt equipment may include cooling systems; equipment used to generate, transform, transmit, distribute, or manage electricity needed for the data center; and building and construction materials sold to contractors for incorporation into the data center.
An eligible data center generally must involve at least $100 million in qualifying capital investment over the applicable investment period and at least $1.5 million in annual employee compensation subject to Ohio income-tax withholding beginning no later than the 25th month after the agreement is entered.
The exemption agreement may cover equipment purchased by the applicant or by other taxpayers operating a data center business at the same project site, allowing multiple operators to benefit from one agreement.
The exemption may last for a term set by the tax credit authority and may cover up to 100 percent of the otherwise-owed sales and use taxes on qualifying equipment.
Each taxpayer covered by an exemption agreement must receive a direct payment permit allowing it to pay applicable sales and use taxes directly to the tax commissioner and claim the agreed exemption through its tax returns.
A data center operator may stop operations temporarily without violating the agreement if it resumes operations within 18 months. It cannot claim the exemption for equipment purchased during the shutdown period.
A taxpayer may join an existing data center exemption agreement and receive all of its benefits while assuming all obligations and requirements under the agreement.
Financial statements and other information submitted for a data center exemption are not public records under Ohio's public-records law, subject to limited use by state officials for reports, tax administration, or court proceedings.
Sources
unknown · State measure: AEP Ohio’s service territory; eligible data center loads covered by the tariffSchedule DCT covers qualifying Ohio Power data centers with aggregate monthly maximum demand greater than 25,000 kW.PUCO Ohio Power Company Data Center Rate Class and Tariff (2025-2026)
What this means
For new or expanding data centers over 25 MW in AEP Ohio’s service area, the measure would require long contracts, minimum payments, and possibly financial collateral, making projects costlier and less flexible. It would also end the utility’s service moratorium and allow queued requests to move forward, so the added burdens are meaningful but do not amount to a ban.
Timing
- Ends
- upon approval and effectiveness of Schedule DCT (the compliance tariff)
AEP Ohio must end the moratorium and process queued service requests when Schedule DCT takes effect. No calendar date is specified.
People behind it
- Ohio Power Company (AEP Ohio)
Filed the application proposing the tariffs and co-filed the stipulation recommending tariff terms.
- Public Utilities Commission of Ohio Staff
Co-filed and signed the stipulation recommending the tariff terms.
- Ohio Energy Group
Co-filed and signed the stipulation recommending the tariff terms.
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- Office of the Ohio Consumers’ Counsel
Co-filed and signed the stipulation recommending the tariff terms.
- Walmart Inc.
Co-filed and signed the stipulation recommending the tariff terms.
- Ohio Partners for Affordable Energy
Co-filed and signed the stipulation recommending the tariff terms.
- Public Utilities Commission of Ohio
Administered the proceeding and approved the stipulation, as modified, authorizing revised tariffs.
Restrictions & requirementsHide restrictions & requirements20
Schedule DCT applies to new data-center loads or expansions exceeding 25,000 kW in aggregate. Loads of affiliated or commonly owned companies and multiple facilities at one location are aggregated. Existing loads with a pre-effective-date service agreement are generally grandfathered, but an expansion exceeding 25,000 kW above contracted capacity triggers the tariff; if the added load cannot be separately metered, the existing load also loses its exemption.
Until Schedule DCT takes effect, AEP Ohio’s moratorium keeps new data-center service requests in the queue. When the tariff takes effect, AEP Ohio must end the moratorium and process the queued requests.
Data-center service requests must be submitted through the required application process. To request a load study, a customer must control the property and identify the site, load ramp, and final load. Study fees are $10,000 for requests above 25,000 kW and below 50,000 kW, $50,000 for 50,000 to below 100,000 kW, and $100,000 for 100,000 kW or more; payment is due within 45 days or the request loses its queue position.
AEP Ohio may group queued customers into tranches tied to expected regional transmission upgrades. Studies are to be completed within 45 days, or 60 days when upgrades are needed, as a reasonable-efforts target. Service cannot begin until the necessary infrastructure and capacity are available.
After receiving the proposed Letter of Agreement and Electric Service Agreement, a customer has 60 days to sign them. The Letter of Agreement requires reimbursement of 100% of AEP Ohio’s buildout costs if the customer cancels or delays the project by more than 12 months before its target energization date.
A covered customer must accept a contract term of at least the load-ramp period, which may not exceed four years, plus eight years. During the initial term, minimum charges remain payable even if the customer curtails, reduces, suspends, or terminates service. Early exit is available only after the fifth year following the ramp and requires payment equal to 36 months of minimum charges; after the initial term, termination or capacity changes generally require three years’ notice.
During the ramp, contract capacity must be at least 50%, 65%, 80%, and 90% of full contract capacity in years one through four, respectively; monthly billing demand must be at least 85% of ramp-period contract capacity. After the ramp, minimum monthly billing demand is subject to the tariff’s prior-demand and contract-capacity formulas, including an 85% prior-peak floor and a cap of 85% of total contract capacity.
Customers that do not meet the specified credit-rating and liquidity tests must provide a qualifying guarantee, letter of credit, or cash collateral equal to 50% of minimum charges for the full contract term. The tariff provides for reductions based on years of energized service with on-time payments.
A customer must designate a specific project site and own or have the exclusive right to use the land. Before energization, it must sign the required agreement for network or customer-specific investment, or a contribution-in-aid-of-construction agreement where applicable.
At a site with data-center and non-data-center load, Schedule DCT generally applies to all distribution service unless the loads can be separately metered into separate accounts. The customer pays the metering and other separation costs.
Any load addition exceeding 100 kW requires a new contract, and AEP Ohio is not required to supply capacity beyond contract capacity without mutual agreement.
For non-residential line extensions, the customer pays 40% of eligible extension costs, incremental premium-service costs before construction, and costs for land clearance, trenching, and backfilling on its property.
The tariff includes a $20,000 supplemental charge for transmission-voltage service. It does not apply to existing load.
A customer choosing or returning to the Company’s standard-service-offer supply must give at least 180 days’ advance written notice and pay the cost of separate procurement. If notice is not given and AEP Ohio must serve the load, the customer bears the cost of interim spot-market purchases and related administrative costs.
New loads under Schedule DCT cannot participate in AEP Ohio’s 1CP or 6CP Basic Transmission Cost Rider programs or successor programs, subject to stated grandfathering for existing participants.
Before connecting a power source other than the contracted delivery point, a customer must enter an interconnection agreement. If behind-the-meter generation is used to offset contract capacity, the customer must maintain equipment that can instantly curtail load by at least the generation output and meet applicable technical requirements.
Customers must attest that they will follow applicable technical operating requirements, including restrictions on load cycling that could create unacceptable system-frequency conditions. AEP Ohio may disconnect service for activity outside those requirements.
With Commission approval, AEP Ohio may suspend service if a customer’s usage exceeds contract capacity by more than 1,000 kW.
A customer seeking to reduce contract capacity may request reassignment of up to 25% to another Schedule DCT customer. Reassignment is subject to electrical feasibility, costs, collateral requirements, and protections against shifting stranded costs to other ratepayers.
Before receiving service, a mobile data center must provide a sworn statement that it and its parent and affiliates are not affiliated with or acting for a foreign adversary. AEP Ohio may disconnect it if the company has a good-faith belief the statement is false.
Benefits & exceptionsHide benefits & exceptions18
New or expanded data-center load at or below 25 MW in the aggregate is outside Schedule DCT; affiliated companies and facilities are aggregated when calculating the threshold.
A data center with an LOA or ESA in place before Schedule DCT takes effect is grandfathered and may expand up to 25 MW above its existing contracted capacity without moving to the tariff. Larger expansions are subject to the tariff; separate metering may preserve grandfathering if technically feasible, with metering costs borne by the customer.
New tariff customers may ramp up over as many as four years, with contract-capacity levels of 50%, 65%, 80%, and 90% in years one through four. Minimum billing demand is capped at 85% of total contract capacity.
If required infrastructure is not ready by the estimated in-service date, the customer may petition the Commission to adjust the contract term; an adjustment is not automatic.
A qualifying new-load customer that meets the specified credit-rating and liquidity tests need not provide tariff collateral. Otherwise, collateral is reduced by one year’s minimum charges for each year the customer is energized and pays on time.
A customer may satisfy collateral requirements through its financial sponsor if the sponsor co-signs the contract with AEP Ohio.
For non-residential line extensions, AEP Ohio pays 60% of the extension cost and the customer pays 40%, plus incremental premium-service costs.
Customers that control the site and provide specified location and load details may request a load study. AEP Ohio must make reasonable efforts to complete it within 45 days, or 60 days if regional upgrades are needed; fees range from $10,000 to $100,000, and queue participation requires timely payment and other stated steps.
AEP Ohio must include Schedule DCT customer loads in its PJM forecast; necessary transmission infrastructure is planned through PJM. For queued customers needing regional upgrades, AEP Ohio groups customers into tranches based on expected upgrade capacity. Service begins when the required infrastructure is in place and capacity is available.
When Schedule DCT takes effect, AEP Ohio must end the temporary data-center service moratorium and process queued service requests; processing does not guarantee service.
At sites with both data-center and non-data-center load, customers may request separate metering and accounts if technically feasible, but must pay the separation costs.
Customers may use behind-the-meter generation for netting or to offset contract capacity if equipment can instantaneously curtail load by at least the generation output and meets applicable technical requirements. Non-parallel emergency or backup generation is exempt from the additional customer-owned-generation requirements.
After completing the fifth contract year following the load-ramp period, a customer may terminate during the initial term by paying an exit fee equal to 36 months of minimum charges after notice.
A customer reducing contract capacity may request reassignment of up to 25% of that capacity to another Schedule DCT customer to reduce some or all of the associated exit fee. The transfer is subject to feasibility, receiving-customer agreement and collateral requirements, incremental costs, and protections against stranded costs.
AEP Ohio must offer Schedule GS customers with contract demand above 25 MW a one-time opportunity to reduce contract capacity if the reduction does not strand assets and the customer agrees not to seek more capacity at that location for three years, absent changed circumstances.
For usage more than 1,000 kW above contract capacity, AEP Ohio may suspend Schedule DCT service only with Commission approval; other tariff and rule-based disconnection or curtailment rights remain.
Data-center customers may choose competitive generation service from a retail supplier or Standard Offer Service. Switching or returning to Standard Offer Service requires 180 days’ written notice and a separate procurement at the customer’s expense.
Existing-load customers already participating in the 1CP or 6CP transmission-cost pilot may remain in it through the end of ESP V; new loads and other data centers may not join.
Sources
unknown · StatewideCertifies that the proposed amendment’s title and summary were fair and truthful under Ohio law and submits the certification to the Secretary of State on March 26, 2026 (certification).Ohio Attorney General certification — Prohibition of Construction of a Data Center Initiative Petition (2026)
Timing
The measure prohibits construction of data centers, but the provided source does not make clear when that prohibition ends.
People behind it
- Austin Baurichter
Identified as a committee member associated with the initiated amendment petition. Committee Members
- Karley Baurichter
Identified as a committee member associated with the initiated amendment petition. Committee Members
- Nichole Gerber
Identified as a committee member associated with the initiated amendment petition. Committee Members
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- Jessica Baker
Identified as a committee member associated with the initiated amendment petition. Committee Members
- Andrew Gula
Identified as a committee member associated with the initiated amendment petition. Committee Members
- Dave Yost
As Ohio Attorney General, certified that the amendment’s title and summary were fair and truthful. I hereby certify that the title and summary are fair and truthful statements
- County boards of elections
Verified signatures on the petition part-petitions. all of the county boards of elections reporting back
Sources
pending · StatewideWould prohibit the granting of new sales-tax exemptions for data centers by amending Ohio Revised Code section 122.175.Ohio HB 957 (2025-2026)
What this means
The measure would end the state’s ability to approve new data-center sales-tax exemption agreements after October 1, 2026, making new projects and expansions more expensive. It would not ban data-center construction or operation, so the impact is a meaningful financial setback rather than a severe barrier.
People behind it
- Tristan Rader
Primary sponsor of House Bill 957
- Daniel P. Troy
Co-sponsor of House Bill 957
- Anita Somani
Co-sponsor of House Bill 957
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- Munira Abdullahi
Co-sponsor of House Bill 957
- Eric Synenberg
Co-sponsor of House Bill 957
- Veronica R. Sims
Co-sponsor of House Bill 957
- Darnell T. Brewer
Co-sponsor of House Bill 957
- Juanita O. Brent
Co-sponsor of House Bill 957
- Joseph A. Miller, III
Co-sponsor of House Bill 957
- Justin Pizzulli
Co-sponsor of House Bill 957
- Rachel B. Baker
Co-sponsor of House Bill 957
- Tax credit authority
Administers the data center tax exemption program, including reviewing applications and entering into exemption agreements
- Director of development
Administers the measure by prescribing applications, reviewing economic impacts, verifying compliance, adopting rules, and reporting on exemptions
- Tax commissioner
Administers tax-related aspects of the measure, including reviewing applications, issuing permits, receiving returns, and assessing amounts owed
Restrictions & requirementsHide restrictions & requirements4
New data-center sales and use tax exemption agreements may be entered into only before October 1, 2026; after that date, new exemptions cannot be granted.
To qualify for an exemption before the cutoff, a data center must be an eligible computer data center, including at least $100 million in capital investment during the applicable investment period and at least $1.5 million in annual employee compensation subject to Ohio withholding beginning in the 25th month after the agreement is entered.
During the exemption agreement, the data center must remain eligible and maintain operations. Operations may cease temporarily only if they resume within 18 months; no exemption may be claimed during the interruption, and noncompliance may lead to a reduced exemption, termination of the agreement, and repayment of previously exempted taxes.
Participating taxpayers must annually report employment, tax-withholding, capital-investment, and other information, obtain annual verification from the director of development, and comply with the agreement's conditions to continue receiving the exemption.
Benefits & exceptionsHide benefits & exceptions5
The tax credit authority may grant a complete or partial sales and use tax exemption for computer data center equipment used at an eligible data center, including related delivery, installation, and repair charges. The exemption may cover up to 100% of the otherwise applicable taxes. Eligibility generally requires at least $100 million in capital investment and at least $1.5 million in annual employee compensation subject to Ohio withholding, with additional agreement conditions. complete or partial exemption
A data center project may apply for a tax-exemption agreement covering equipment purchased by the applicant or by other taxpayers operating data center businesses at the project site. The tax credit authority must consider state and local economic impacts and may approve the agreement only before October 1, 2026, subject to findings that the project increases payroll, the applicant is financially capable, will maintain operations, and considers the exemption a major factor in proceeding. before October 1, 2026
Each taxpayer covered by an agreement receives a direct payment permit, allowing it to pay sales and use taxes directly to the tax commissioner and claim the agreed exemption for qualifying data center equipment. The taxpayer must file returns identifying its purchases, the otherwise applicable tax, the exemption percentage, and the resulting tax due, and must generally include the development director's annual verification certificate. direct payment permit
A taxpayer may join an existing data center tax-exemption agreement and receive all of its benefits while assuming all of its obligations and statutory requirements. When an agreement has multiple taxpayers, each participating taxpayer is also entitled to its own direct payment permit. made a party to an existing agreement
An applicant does not violate the agreement's operations-maintenance requirement if it temporarily stops operating at the eligible data center and resumes operations within 18 months. During the interruption, however, the applicant and other site taxpayers may not claim the agreement's exemption for equipment purchases made while operations are discontinued. resumes those operations within eighteen months
Sources
pending · StatewideWould create a Data Center Study Commission within Ohio’s Department of Development to examine data centers’ effects on the environment, electric grid, water supplies, communities, and other identified issues, while not directly regulating data centers.Ohio HB 646 (2025-2026)
What this means
The measure creates a study commission to examine data centers and report recommendations; it does not add rules that directly affect building, expanding, or operating them. Its recommendations for local decision-makers are nonbinding, so it has no meaningful direct effect.
People behind it
- Gary Click
Primary sponsor of the bill, as listed under Primary Sponsors.
- Kellie Deeter
Primary sponsor of the bill, as listed under Primary Sponsors.
- Munira Abdullahi
Cosponsor of the bill, as listed under Cosponsors.
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- Tim Barhorst
Cosponsor of the bill, as listed under Cosponsors.
- Adam C. Bird
Cosponsor of the bill, as listed under Cosponsors.
- Sean P. Brennan
Cosponsor of the bill, as listed under Cosponsors.
- Thaddeus J. Claggett
Cosponsor of the bill, as listed under Cosponsors.
- Rodney Creech
Cosponsor of the bill, as listed under Cosponsors.
- Jack K. Daniels
Cosponsor of the bill, as listed under Cosponsors.
- Michael D. Dovilla
Cosponsor of the bill, as listed under Cosponsors.
- Haraz N. Ghanbari
Cosponsor of the bill, as listed under Cosponsors.
- Jennifer Gross
Cosponsor of the bill, as listed under Cosponsors.
- Thomas Hall
Cosponsor of the bill, as listed under Cosponsors.
- Adam Holmes
Cosponsor of the bill, as listed under Cosponsors.
- James M. Hoops
Cosponsor of the bill, as listed under Cosponsors.
- Marilyn John
Cosponsor of the bill, as listed under Cosponsors.
- Angela N. King
Cosponsor of the bill, as listed under Cosponsors.
- Roy Klopfenstein
Cosponsor of the bill, as listed under Cosponsors.
- Beth Lear
Cosponsor of the bill, as listed under Cosponsors.
- Brian Lorenz
Cosponsor of the bill, as listed under Cosponsors.
- Gayle Manning
Cosponsor of the bill, as listed under Cosponsors.
- Adam Mathews
Cosponsor of the bill, as listed under Cosponsors.
- Ty D. Mathews
Cosponsor of the bill, as listed under Cosponsors.
- Joseph A. Miller, III
Cosponsor of the bill, as listed under Cosponsors.
- Kevin D. Miller
Cosponsor of the bill, as listed under Cosponsors.
- Melanie Miller
Cosponsor of the bill, as listed under Cosponsors.
- Ismail Mohamed
Cosponsor of the bill, as listed under Cosponsors.
- Johnathan Newman
Cosponsor of the bill, as listed under Cosponsors.
- Bob Peterson
Cosponsor of the bill, as listed under Cosponsors.
- Justin Pizzulli
Cosponsor of the bill, as listed under Cosponsors.
- Phil Plummer
Cosponsor of the bill, as listed under Cosponsors.
- Sharon A. Ray
Cosponsor of the bill, as listed under Cosponsors.
- Tracy M. Richardson
Cosponsor of the bill, as listed under Cosponsors.
- Monica Robb Blasdel
Cosponsor of the bill, as listed under Cosponsors.
- Elgin Rogers, Jr.
Cosponsor of the bill, as listed under Cosponsors.
- Jodi Salvo
Cosponsor of the bill, as listed under Cosponsors.
- Jean Schmidt
Cosponsor of the bill, as listed under Cosponsors.
- Jason Stephens
Cosponsor of the bill, as listed under Cosponsors.
- Brian Stewart
Cosponsor of the bill, as listed under Cosponsors.
- Eric Synenberg
Cosponsor of the bill, as listed under Cosponsors.
- David Thomas
Cosponsor of the bill, as listed under Cosponsors.
- Daniel P. Troy
Cosponsor of the bill, as listed under Cosponsors.
- Terrence Upchurch
Cosponsor of the bill, as listed under Cosponsors.
- Andrea White
Cosponsor of the bill, as listed under Cosponsors.
- Josh Williams
Cosponsor of the bill, as listed under Cosponsors.
- Bernard Willis
Cosponsor of the bill, as listed under Cosponsors.
- Heidi Workman
Cosponsor of the bill, as listed under Cosponsors.
- Tom Young
Cosponsor of the bill, as listed under Cosponsors.
- Data Center Study Commission
The bill creates the Commission to examine data-center issues and submit findings and recommendations.
- Department of Development
The bill places the Data Center Study Commission within the Department.
- Governor
Appoints members to the Commission under the bill.
- Speaker of the House of Representatives
Appoints members to the Commission and consults the House Minority Leader on a minority-party appointment.
- President of the Senate
Appoints members to the Commission and consults the Senate Minority Leader on a minority-party appointment.
- Minority Leader of the House of Representatives
Appointed Commission members under the introduced version; the passed version specifies consultation on a minority-party appointment.
- Minority Leader of the Senate
Appointed Commission members under the introduced version; the passed version specifies consultation on a minority-party appointment.
Restrictions & requirementsHide restrictions & requirements2
Proposed electricity-supply offset requirements for new data centers exceeding 250 MW.
Proposed water-conservation practices and annual reporting.
Benefits & exceptionsHide benefits & exceptions5
A data center project may qualify for a refundable job-creation tax credit based on payroll above its baseline, at the percentage and for the term set in an agreement with the tax credit authority. Approval requires, among other things, that the project increase payroll, be economically sound, and that the credit be a major factor in proceeding; the agreement also requires continued operations and annual reporting. The amount of the credit
The tax credit authority may grant a full or partial sales-and-use-tax exemption for eligible data-center equipment, including equipment used to generate, transmit, or manage necessary electricity, as well as delivery, installation, and repair charges. Eligibility includes at least $100 million in capital investment and annual employee compensation subject to withholding of at least $1.5 million beginning in the specified period; centers exceeding 250 megawatts must also offset grid consumption through specified supply arrangements or, for a power-purchase agreement, one lasting at least 15 years. The authority may completely or partially exempt
Political subdivisions may provide property-tax incentives for data centers, but the exemption is limited to no more than 50% of the property’s increased value. To receive the incentive, the data center developer, owner, or operator must provide security for its contractual obligations; the agreement must state the projected employee count and salaries for the first ten years, and the security must be at least the total projected salary amount. Not more than fifty per cent of the increased value
The director of development must publish resources for political subdivisions to use when authorizing tax incentives for data centers. Prepare and publish on its web site resources
Certain existing data-center operators are exempt from the bill’s new electricity-supply and cost-allocation requirements if they had contracted with a utility before the relevant effective date. The exemption can end if the operator makes a material capacity increase; contracts under a previously approved data-center tariff are also protected for their term. Do not apply to data center operators that had contracted
Sources
pending · StatewideWould prohibit Ohio townships, municipalities, and counties from authorizing local tax incentives for data centers, including property-tax exemptions under specified laws and other provisions allowing political subdivisions to exempt property, with unauthorized incentives being void.Ohio HB 999 (2025-2026)
What this means
The bill would stop local governments from offering data centers new tax incentives or property-tax exemptions, which could make building or expanding them more expensive (no local tax incentive). It would not ban data centers or directly restrict their construction or operation, so the impact is meaningful but limited.
People behind it
- Daniel P. Troy
Primary sponsor of House Bill 999
- Munira Abdullahi
Co-sponsor of House Bill 999
- Rachel B. Baker
Co-sponsor of House Bill 999
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- Sean P. Brennan
Co-sponsor of House Bill 999
- Joseph A. Miller, III
Co-sponsor of House Bill 999
- Tristan Rader
Co-sponsor of House Bill 999
- Veronica R. Sims
Co-sponsor of House Bill 999
Restrictions & requirementsHide restrictions & requirements2
Beginning on the section’s effective date, a township, municipal corporation, or county may not authorize any local tax incentive for a data center. Any incentive authorized in violation is void. The prohibition covers specified economic-development and property-tax exemption programs, as well as any other Revised Code provision allowing a political subdivision to exempt property from taxation. No political subdivision shall authorize a local tax incentive for a data center.
Beginning on the section’s effective date, the tax commissioner and county auditors may not approve an application for a data-center property-tax exemption under Revised Code section 5715.27. Any exemption approved in violation is void. Neither the tax commissioner nor any county auditor shall approve an application for tax exemption for a data center.
Sources
pending · StatewideWould establish the proposed “Responsible Water Use by Data Centers Act” to regulate data centers’ water withdrawals and consumptive use under Ohio SB 378.Ohio SB 378 (2025-2026)
What this means
If enacted, the bill would require a permit for any data center water use that consumes water, and it would bar new or increased consumptive use above five million gallons per day. Data centers would also have to pay water and sewer infrastructure costs attributable to them, adding meaningful costs and limits, especially for water-intensive facilities.
People behind it
- Willis E. Blackshear, Jr.
Primary sponsor of Senate Bill 378.
- Casey Weinstein
Primary sponsor of Senate Bill 378.
- Kent Smith
Cosponsor of Senate Bill 378.
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- Chief of the Division of Water Resources
Administers the data center consumptive-use permit program established by the measure.
Restrictions & requirementsHide restrictions & requirements10
Data center owners or operators must pay all direct and indirect water and sewer infrastructure costs attributable to establishing and operating the data center; those costs cannot be shifted to other ratepayers. all infrastructure costs incurred by the water and sewer system
Before withdrawing any waters of the state that results in any consumptive use, a data center owner or operator must obtain a data center consumptive-use permit from the chief of the Division of Water Resources. no person shall allow a data center
The chief may hold a public hearing on a data center consumptive-use permit application, and permit applicants must provide information required by statute and rules. The chief may hold public hearings upon any application
A permit cannot be issued for a data center proposing a new or increased consumptive use averaging more than five million gallons per day during any thirty-day period, and data centers are prohibited from making such a withdrawal. more than an average of five million gallons of water per day in any thirty-day period
A data center consumptive-use permit may be transferred only under rules adopted by the chief and only if the quantity withdrawn is not increased and the purpose of the withdrawal is not changed. the quantity of water withdrawn not be increased
The chief must revoke a permit without a prior hearing if the data center withdraws more water than stated in its permit application. shall revoke a permit
The chief may suspend a permit if continued withdrawal would endanger public health, safety, or welfare; the permittee must receive an opportunity to be heard within five days after the suspension. may suspend a permit
Permit holders must submit an annual report to the chief containing information required by rule. Each permittee shall submit to the chief an annual report
Violating the data center consumptive-use permit requirement, violating the five-million-gallon-per-day limit, or violating permit terms is a fourth-degree misdemeanor, with fines deposited into the water management fund. is guilty of a misdemeanor of the fourth degree
Any six or more Ohio residents may petition the chief to investigate an alleged violation of a data center's permit, and the chief must determine within sixty days whether grounds exist for suspension or revocation. within sixty days
Benefits & exceptionsHide benefits & exceptions2
A data center consumptive-use permit may be transferred, provided the transfer does not increase the quantity of water withdrawn or change the purpose of the withdrawal.
If the chief denies or requires modifications to a permit application, the applicant is entitled to a hearing under Chapter 119 of the Revised Code if the applicant submits a written request within thirty days after notice is mailed or otherwise provided.
Sources
pending · StatewideWould prohibit specified county, township, and village elected officials from knowingly entering into nondisclosure agreements restricting disclosure, discussion, description, or commentary on matters related to their official duties.Ohio HB 695 (2025-2026)
What this means
The bill would stop certain local elected officials from signing nondisclosure agreements, which could make data center project discussions more public. It does not change data center construction or operating rules, so its practical effect is limited.
People behind it
- Adam C. Bird
RepublicanPrimary sponsor of House Bill 695.
- Brian Stewart
RepublicanPrimary sponsor of House Bill 695.
Sources
pending · StatewideWould establish minimum requirements for Ohio data-center customers and protect other electric customers from related costs and risks, including for facilities with monthly maximum demand greater than 25,000 kilowatts.Ohio HB 706 (2025-2026)
What this means
For data centers with demand above 25,000 kW, the bill would require long-term utility contracts, minimum billing commitments, and financial backing for dedicated infrastructure, adding meaningful cost and risk to building or expanding. It would also protect other utility customers from being left with those costs, but that benefit does not offset the new obligations for data center operators (contract and financial-assurance requirements).
People behind it
- Tristan Rader
Primary sponsor and proposer of the bill
- David Thomas
Primary sponsor and proposer of the bill
- Munira Abdullahi
Co-sponsor of the bill
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- Sean P. Brennan
Co-sponsor of the bill
- Darnell T. Brewer
Co-sponsor of the bill
- Ashley Bryant Bailey
Co-sponsor of the bill
- Christine Cockley
Co-sponsor of the bill
- Kellie Deeter
Co-sponsor of the bill
- Tex Fischer
Co-sponsor of the bill
- Matthew Kishman
Co-sponsor of the bill
- Gayle Manning
Co-sponsor of the bill
- Lauren McNally
Co-sponsor of the bill
- Joseph A. Miller, III
Co-sponsor of the bill
- Justin Pizzulli
Co-sponsor of the bill
- Mark Sigrist
Co-sponsor of the bill
- Veronica R. Sims
Co-sponsor of the bill
- Anita Somani
Co-sponsor of the bill
- Eric Synenberg
Co-sponsor of the bill
- Cecil Thomas
Co-sponsor of the bill
- Ohio General Assembly
Legislative body identified as enacting the measure
- Public Utilities Commission of Ohio
Agency assigned administrative and regulatory responsibilities under the measure
Restrictions & requirementsHide restrictions & requirements8
An electric distribution utility may not provide service to or invest in infrastructure for a data center customer that has not satisfied the bill’s requirements for binding commitments, minimum billing demand, and financial assurance. may not provide electric service or make infrastructure investments
Before receiving electric service, a data center must enter into a binding utility commitment that includes additional minimum demand or usage commitments, long-term service agreements, exit fees or liquidated damages, and collateral, guarantees, or other financial assets; the agreement requires Public Utilities Commission approval. shall include the following
A data center customer must obtain Commission-approved agreement terms establishing a minimum billing demand sufficient to support infrastructure planning and cost recovery. Once the data center reaches full commercial capacity, the minimum billing demand must be at least 85% of contracted capacity, and the minimum contract term must be at least 12 years, including any approved load-ramp period of up to four years. not less than eighty-five per cent of contracted capacity
Before construction begins on transmission or distribution facilities dedicated wholly or partly to a data center customer, the Commission must require financial assurance protecting other customer classes against costs from premature exit, downsizing, default, disconnection, or unauthorized reductions in service. The assurance must cover the unrecovered net book value of dedicated facilities, minimum-billing exposure, and applicable exit fees. Prior to commencing construction
Required financial assurance must be reviewed and adjusted by the electric distribution utility at least every two years to reflect remaining unrecovered investment and the risk of exit, downsizing, or cessation of operations. reviewed and adjusted at least biennially
The bill’s requirements for commitments, minimum billing, and financial assurance are minimum requirements, so the Public Utilities Commission may impose more stringent requirements on data center customers. may impose more stringent requirements
Within six months after the section’s effective date, the Public Utilities Commission must establish statewide standards governing load-study deposits, including nonrefundable portions; queue-position forfeitures for missed milestones; first-come-first-served or tranche-based processing; and aggregation of affiliated projects for queue priority. Not later than six months after the effective date
An electric distribution utility may not shift distribution, transmission, or generation costs, or related financial or operational risks caused by a data center customer, to other customer classes unless the Commission determines that the recovery is just and reasonable. Agreements and related cost-recovery mechanisms also require a finding that they will not increase rates for existing customers, with the utility bearing the burden of proof. shall not recover any distribution, transmission, or generation costs
Benefits & exceptionsHide benefits & exceptions4
Utilities may establish minimum-billing agreements with data center customers that include load-ramp periods and additional financial assistance, supporting staged development and potentially helping customers manage the start-up period. The agreement requires commission approval, and once at full commercial capacity the customer must generally be billed for at least 85% of contracted capacity under a contract lasting at least 12 years, including any load ramp of up to four years.
The required customer agreements may include long-term service agreements, minimum usage commitments, and utility-determined terms for reliability and infrastructure planning, providing a framework for securing and maintaining electric service. The agreements are subject to Public Utilities Commission approval.
The Public Utilities Commission must establish uniform statewide standards for data-center interconnection and project queues, including load-study deposits, milestone-related queue forfeitures, first-come-first-served or tranche-based processing, and aggregation of affiliated projects for queue priority. These standards create a statewide process for seeking electric service and infrastructure.
The bill expressly contemplates construction of transmission or distribution facilities dedicated in whole or in part to a data center customer, provided the customer supplies financial assurance covering specified risks. This creates a statutory framework for dedicated utility infrastructure supporting data-center service.
Sources
pending · StatewideWould regulate data centers and associated power-generating facilities through local voter approval for most new or expanded facilities, public disclosures, environmental testing and controls, independent power-generation requirements, ethics restrictions, and limits on local tax incentives.Ohio HB 983 (2025-2026)
What this means
The bill would make new construction and expansion much harder: projects would need voter approval in nearby communities, and new or expanded data centers would have to generate all their own electricity without relying on the public grid. It would also impose strict water and emissions requirements and bar local tax incentives, creating substantial costs and delays; it is a proposed bill, not current law.
People behind it
- Jennifer Gross
Primary sponsor of House Bill 983.
- Michelle Teska
Primary sponsor of House Bill 983.
- Tim Barhorst
Cosponsor of House Bill 983.
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- Levi Dean
Cosponsor of House Bill 983.
- Diane Mullins
Cosponsor of House Bill 983.
- D. J. Swearingen
Cosponsor of House Bill 983.
Restrictions & requirementsHide restrictions & requirements18
A citizen vote is required before any new or expanded data center, including an associated power-generating facility, can be approved in a city, village, or township within five miles of the project perimeter. A simple majority is required, and the vote must occur before any permit, zoning approval, or development and supply agreement; approvals issued without the vote are void. (citizen vote is required)
The election must be held at the next special or general election occurring at least ninety days after certification. If voters reject the project, the owner may not resubmit it for two years. (at least ninety days)
A data center that has permits but has not begun active construction when the act takes effect must cease construction until it receives voter approval. The exception is for projects already under active construction and holding all required permits before the effective date. (already under active construction)
The Ohio Environmental Protection Agency director must adopt data-center air-emission and wastewater-discharge standards within one year, and may not issue operating, discharge, or emissions permits—or grant waivers or exemptions—to facilities that do not meet those standards. (not later than one year)
Beginning eighteen months after the effective date, existing data centers must use an attached wastewater-treatment facility before discharging wastewater and must use best available control technology to remove metals and organics, including PFAS. (Beginning eighteen months)
Beginning eighteen months after the effective date, permits for existing data centers or associated power-generating facilities using open-loop systems must be revoked if the facility is not complying with the bill's treatment, emissions, wastewater, or permit requirements. (shall revoke)
Existing data centers using open-loop systems must complete an independent air-quality and public-health assessment within ninety days and annually thereafter, undergo independent biologic testing of cooling-tower emissions twice each year, and pay all assessment and testing costs. (within ninety days)
Existing associated power-generating facilities using open-loop systems must install and use attached air-cleaning and emissions-control equipment within eighteen months after the effective date. (install and utilize attached air cleaning)
A voter-approved new or expanded data center and its associated power-generating facility must use closed-loop systems, operate with an attached wastewater-treatment facility, comply with the bill's testing and control requirements, and obtain the required permits before operating. (utilizes a closed loop system)
Voter-approved projects must submit wastewater-discharge plans, conduct post-construction wastewater testing before receiving an NPDES permit and beginning full operations, and have required test results authenticated by the data center's chief executive officer. False certification of pilot-scale results may result in criminal prosecution. (before full operations commence)
Data center owners must disclose all chemicals, cooling agents, and wastewater-treatment substances and their concentrations to the environmental protection director and the local government, with public website disclosure before operations and before changes are implemented. (shall disclose all chemicals)
Before wastewater discharge or recycling, an independent third-party water-testing company selected and supervised by the environmental protection director must conduct testing. Owners must submit the results, pay all testing and monitoring costs, install chemical-additive meters, and conduct wastewater and air-emissions sampling weekly unless they choose continuous sampling. (independent third-party water testing company)
If a data center or associated power-generating facility reduces local water pressure or supply within five miles, the owner must pay all corrective, infrastructure, temporary-supply, aquifer-impact, and reimbursement costs, plus a $5,000-per-day fine until the problem is resolved. (full financial responsibility)
For wastewater or emissions violations, the owner must correct the violation and report it within ten business days and pay at least $10,000 per day. If noncompliance continues after ten days, the fine increases to $25,000 per day, and permits may be revoked after an additional thirty-day notice period. (ten business days)
Voter-approved data centers, their associated power-generating facilities, and expanded portions of expanded data centers must generate 100 percent of their electricity through on-site or off-grid facilities, operate independently of the public grid, and impose no power-generation or grid-infrastructure costs on Ohio ratepayers. (one hundred per cent of their own electricity)
Political subdivisions may not authorize local tax incentives for data centers or associated power-generating facilities after the effective date, and the tax commissioner and county auditors may not approve related property-tax exemption applications. (No political subdivision shall authorize a local tax incentive)
Applicants for state or local economic-development assistance must disclose outstanding liabilities and authorize financial-record inspection; knowingly false statements or omissions make the applicant ineligible for the assistance and require repayment of money received. (ineligible for the assistance applied for)
All development and supply agreements related to data centers or associated power-generating facilities must be publicly disclosed, and agreements already in effect before the act's passage become void after passage. (Full public disclosure)
Benefits & exceptionsHide benefits & exceptions2
New or expanded data centers already under active construction and holding all required permits before the act’s effective date are exempt from the citizen-vote requirement.
For a new or expanded data center that had all required permits before the act’s effective date but had not begun active construction, previously issued environmental permits remain valid if voters approve the project and it complies with applicable federal and state wastewater, air-emissions, and permit requirements.
Sources
pending · StatewideOhio SB 381 is an introduced proposal, not verified enacted law.Ohio Senate Bill 381 (2025-2026)
What this means
If enacted, this would create significant hurdles: covered data centers would need state approval before applying to connect, and an independent grid-impact review could take 270 days, with a possible 90-day extension. Applicants would pay for the review and all required grid upgrades, while approval could be denied or made conditional; the measure aims to protect grid reliability and residential rates, but does not ban data centers. approval before applying · 270 days · entire cost
People behind it
- Casey Weinstein
Primary sponsor of SB 381 (listed as the primary sponsor).
- Hearcel F. Craig
Cosponsor of SB 381 (listed among the cosponsors).
- William P. DeMora
Cosponsor of SB 381 (listed among the cosponsors).
Show 3 more peopleShow fewer people
- Willis E. Blackshear, Jr.
Cosponsor of SB 381 (listed among the cosponsors).
- Kent Smith
Cosponsor of SB 381 (listed among the cosponsors).
- Public Utilities Commission of Ohio
The bill assigns the Commission responsibilities for reviewing data-center interconnection applications and agreements and allows it to adopt implementing rules (the commission may adopt rules).
Restrictions & requirementsHide restrictions & requirements6
For a data center used primarily or exclusively for electronic information services with monthly maximum demand greater than 25,000 kWh—including portable or distributable facilities—the applicant must obtain commission interconnection approval before formally applying to an interconnection provider. Informal pre-application activities remain allowed. Data-center threshold and scope Prior approval and pre-application exception
Each application triggers a required independent forecast of grid impacts, including rates, reliability, transmission constraints, and projected demand versus capacity. The forecast is due within 270 days after the forecaster is selected, with a possible 90-day extension. Required impact forecast Forecast deadline and extension
The applicant must pay the full cost of the impact forecast before the commission may approve interconnection; the commission may also charge an application fee as needed to carry out the law. Applicant responsibility for forecast costs Possible application fee
Within 60 days after receiving the forecast, the commission must decide whether to approve, deny, or conditionally approve the application. Approval depends on the public interest, grid reliability, and whether residential rates would materially increase; denial bars the applicant from seeking interconnection with a provider. Commission decision and denial authority
After conditional approval, the applicant and provider cannot enter into or ratify an interconnection agreement until the commission reviews and approves the proposed agreement. If it is rejected, they must develop revised terms; the applicant may resubmit modified agreements until withdrawing or obtaining approval. Agreement review before entry Resubmission process
The commission cannot approve an interconnection agreement unless the data-center owner must bear the entire cost of infrastructure changes needed to connect the facility or ensure grid reliability after connection. Owner responsibility for infrastructure costs
Benefits & exceptionsHide benefits & exceptions4
The bill would allow informal pre-application interconnection activities, so a project could explore connection requirements before submitting a formal application. Informal, preapplication activities
If the commission finds the application is in the public interest and connection will not materially harm grid reliability or increase residential rates, it would approve the application, allowing the applicant to seek interconnection. Approve the application for interconnection
Even when concerns about public interest, reliability, or residential rates prevent unconditional approval, the commission could conditionally approve the application, allowing the applicant to pursue an interconnection agreement that addresses the identified concerns. Make a conditional approval
If a proposed agreement is rejected, the applicant could submit a modified agreement and reapply repeatedly until withdrawing or receiving approval. The applicant may submit a modified agreement
Sources
pending · StatewideWould require data centers that withdraw any amount of state water to measure, track, and report their water use, but HB 784 remains an introduced proposal rather than enacted law (HB 784, as introduced).Ohio HB 784 (2025-2026)
What this means
If enacted, the measure would require data centers using state water to track and report their use regularly, adding some paperwork and cost. It would not limit construction, expansion, or water use, so the overall effect would be minor.
People behind it
- Christine Cockley
Democratic
Primary sponsor of House Bill 784
- Crystal Lett
Democratic
Primary sponsor of House Bill 784
- Munira Abdullahi
Cosponsor of House Bill 784
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- Joseph A. Miller, III
Cosponsor of House Bill 784
- Tristan Rader
Cosponsor of House Bill 784
- Daniel P. Troy
Cosponsor of House Bill 784
- Ohio General Assembly
Legislative body responsible for proposing and enacting the measure
- Chief of the Division of Water Resources
Responsible for adopting rules, administering reporting requirements, receiving data-center reports, and preparing the required annual report
- Attorney General
Authorized to bring actions to collect civil fines for violations of the measure
Restrictions & requirementsHide restrictions & requirements4
A data center that withdraws any amount of water from the waters of the state must accurately measure and track its water consumption and use in accordance with rules adopted by the chief of the Division of Water Resources.
A data center must submit a monthly water-use report identifying total consumption for the prior month, maximum daily consumption, water sources, whether the water was used for cooling or another application, and any additional information required by rule.
A data center must submit an annual report by February 1 each year stating its total water consumption for the prior calendar year and describing measures taken to improve efficiency and reduce water consumption.
A person authorized to contract for a data center may not enter into a nondisclosure agreement that prevents a political subdivision from commenting on the data center's water consumption or use. A violation may result in a civil fine of up to $1,000, and the agreement is void and unenforceable.
Sources
- search-prod.lis.state.oh.us
- ohiohouse.gov
- www.ohiohouse.gov
- www.legislature.ohio.gov
- ohiohouse.gov
- ohiohouse.gov
- search-prod.lis.state.oh.us
- www.ohiohouse.gov
- ohiosenate.gov
- ohiosenate.gov
- ohiohouse.gov
- legislature.ohio.gov
- www.legislature.ohio.gov
- search-prod.lis.state.oh.us
- www.legislature.ohio.gov
- ohiohouse.gov
- www.legislature.ohio.gov
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