Ohio lawmakers target data center tax breaks and energy costs

Legislative efforts in Ohio are targeting the financial impact of data centers on local residents and utility ratepayers. In the Ohio House of Representatives, House Bill 999 has been introduced to ban property tax abatements for data centers statewide. Sponsored by Representative Daniel Troy, the bill seeks to prohibit state and local agencies from granting these exemptions and may explore terminating existing ones. Proponents argue that current incentives, such as a 15-year exemption for a Google facility in Columbus and millions saved by Amazon in Hilliard, place an unfair burden on residential property owners.

Simultaneously, the Ratepayer Protection Act, backed by Ohio Republican Senator Jon Husted, aims to prevent large electricity users from shifting infrastructure costs to consumers. The legislation would require states to establish standards ensuring that companies like data centers pay for the power generation, transmission lines, and other infrastructure required to serve their facilities. The goal is to ensure that working families and small businesses do not see increased electric bills to fund the energy needs of large technology companies.