Ohio Lawmakers Fail to Pass Broad Data-Center Rewrite

The impasse delays reforms designed to limit new tax breaks, create a data-center electric-rate class, tighten water rules, and return lawmakers to the Capitol on June 24.

Overview

Senators informally approved a substitute to House Bill 646 on Wednesday but the House and Senate did not secure enough votes to finalize the measure before the summer recess.
The proposal would cut future sales- and property-tax exemptions for new data centers from 100% to 50%, while preserving tax terms in existing long-term contracts with companies such as Meta, Google and Amazon.
HB 646 would require electric distribution utilities to file a data-center tariff with the Public Utilities Commission of Ohio and create a dedicated electric-rate class so projects better cover grid costs.
The bill mandates closed-loop cooling or water-conservation best practices and requires facilities to report water-quality anomalies to limit local environmental impacts.
Negotiators left key disputes over the scope of tax changes, PUCO authority, water rules and nondisclosure agreements unresolved and plan to return to the legislature on June 24 to seek a compromise.