Some lawmakers in the Ohio General Assembly are calling for a review and possible repeal of sales tax exemptions granted to data centers across the state.
According to state officials, the tax breaks totaled roughly nearly two billion dollars last year — far exceeding earlier estimates and amounting to nearly 12 times the projected cost.
Supporters of the review say lawmakers need to determine whether the incentives are providing enough economic benefit to justify the lost tax revenue. Critics argue the exemptions have grown too costly and could impact funding for public services and infrastructure.
The tax incentives were designed to attract large technology companies and encourage investment in data center development throughout Ohio. Proponents say the facilities create construction jobs, support long-term economic growth, and help position Ohio as a major technology hub.
However, some legislators say the dramatic increase in the value of the exemptions warrants closer examination as the state continues budget discussions.
No formal repeal legislation has been approved, but lawmakers say additional hearings and financial reviews are expected in the coming months.
