Ohio Legislation Proposed to End Data Center Tax Breaks

House Bill 999 aims to eliminate property tax exemptions for data center operators across the state.

Updated on Sept. 28, 2026 in Data Centers

Ohio Legislation Proposed to End Data Center Tax Breaks

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Should your local government continue offering property tax breaks to attract large data center projects?

Representative Daniel Troy has introduced House Bill 999, which seeks to prohibit state and local agencies from granting future property tax exemptions to data centers. The legislation also proposes terminating existing tax abatements for these facilities in Ohio.

Why it matters

Proponents argue that requiring data centers to pay full property taxes will reduce the tax burden for residential property owners. The bill marks a shift in how Ohio approaches the economic incentives used to attract large-scale computing infrastructure.

Data centers in Ohio have historically received significant relief, with a 2021 Columbus exemption for Google totaling $54 million over 15 years and Amazon saving $5.4 million in Hilliard property taxes in 2024. As of 2025, the state's broader sales tax exemption for such facilities had cost $1.6 billion.

The players

Daniel Troy

The State Representative who introduced House Bill 999 to limit tax incentives for data centers.

Mike DeWine

The Governor of Ohio who enacted an indefinite pause on state sales tax exemptions for new data center projects in June 2026.

Google

A global cloud and data provider that secured a 15-year property tax exemption for a data center project in Columbus in 2021.

Amazon

A major cloud service and logistics provider that saved $5.4 million in local property taxes in Hilliard in 2024.

The details

House Bill 999 works by banning agencies from issuing new property tax abatements and nullifying existing agreements. In regions like New Albany, current arrangements require data centers to make minimum annual payments calculated by a formula in exchange for 10- to 15-year tax relief. The move follows an administrative decision in early June 2026, when Governor Mike DeWine paused sales tax exemptions for new grantees.

2021: Columbus approved a 15-year tax exemption for a Google data center.
2024: Amazon saved $5.4 million in property taxes in Hilliard.
Early June 2026: Governor Mike DeWine paused sales tax exemptions for new grantees.
September 21, 2026: A survey of 40 economists regarding tax abatements was published.
November 2026: Legislators are expected to return from break to address the bill.

The Tech Race

Ohio is recalibrating its development strategy after years of aggressive tax competition to attract hyperscale cloud infrastructure. House Bill 999 marks a significant departure from established regional policies that previously incentivized rapid data center expansion.

The bill aims to alleviate the property tax burden on residential homeowners by requiring data center operators to pay the full tax rate on their facilities. If passed, the change could effectively increase tax revenue from existing major tech hubs like New Albany, Hilliard, and Columbus.

The takeaway

The move signals a growing legislative skepticism toward using tax abatements to lure capital-intensive tech projects. Residents should monitor the upcoming November 2026 election outcomes, which will dictate when lawmakers revisit the debate over corporate tax status.