Ohio

Data center equipment sales-tax exemption

Incentive or explicitly supportive policy

In effect

Scope

Ohio Revised Code section 122.175 authorizes the tax credit authority to exempt, in whole or in part, the sale, storage, use, or other consumption of computer data center equipment used at an eligible computer data center from the taxes in Chapters 5739 and 5741. The exemption can extend to delivery, installation, or repair charges for that equipment. An eligible center must meet the capital-investment and payroll conditions in the section, including at least $100 million of capital investment over the period the section states for the project's beginning year and at least $1.5 million of annual compensation subject to withholding in the years the section describes. The section says the term of each agreement is determined by the tax credit authority. It does not say that every data center in Ohio receives an exemption, and it does not pause construction, interconnection, or operation.

Dates

Effective
No single effective day is stated
Scheduled expiration
None scheduled
Completion condition
Each agreement's term is set by the tax credit authority. The opened section states no single program-wide end date.
Source document
30 September 2025
Last checked
22 September 2026
Issuing authority
Ohio General Assembly

Summary

Ohio Revised Code section 122.175, as published on the official code site with an effective date of 30 September 2025 for the current text, lets the tax credit authority grant a full or partial sales-and-use tax exemption for computer data center equipment at an eligible computer data center. Eligibility includes the capital-investment and payroll conditions written in the section. The length of each agreement is set by the authority rather than by one statewide end date. The 30 September 2025 date is the effective date shown for the current compilation, not a finding that the exemption was created that day: the section refers to projects beginning in 2013 and later. This record is the tax statute only. It is not a utility tariff and it does not order any facility to shut down.

What this does not establish

  • The code page states that the current text is effective 30 September 2025 under House Bill 96 of the 136th General Assembly. That is the compilation date shown on the page. It is not recorded as the first day the exemption existed.
  • A Public Utilities Commission data-center tariff was not opened for this record. A docket index for case 24-0508-EL-ATA was seen separately and is not this statute.
  • Certification is agreement-specific. Describing the statute as in effect does not mean a named facility has an agreement.
  • A separate May 27, 2026 governor release directs the Tax Credit Authority to pause new exemption requests while a legislative study continues. That release does not repeal this section and is a separate record.

Unresolved questions

  • The opened section does not list which projects currently hold agreements.
  • Whether House Bill 96 changed the investment or payroll thresholds, rather than only restating them, was not compared with the prior enrolled text.

Relationships

Supersession means a later instrument replaces the earlier legal effect. A later implementation or a related letter is not treated as a replacement unless the record says so.

Sources

Primary source

https://codes.ohio.gov/ohio-revised-code/section-122.175

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