Capital Bill Signed:

Today, Governor Mike DeWine signed the Capital Bill into law, SB 450 totals $3.7 billion and goes into effect immediately.

Education remains one of the clearest priorities, with $611 million for the Ohio Facilities Construction Commission and $528.7 million for higher education projects. Those dollars will help modernize learning environments, improve campus and school infrastructure, and reinforce Ohio’s long-term workforce and economic development pipeline.

The bill also includes $208 million in community projects, click here for list by county

Other fiscal highlights:

• $720 million to the Ohio Public Works Commission
• $385 million in new appropriations for the Department of Behavioral Health for renovations at six psychiatric hospitals.
• $246.2 million for projects in state and community-based correctional facilities.
• $265.3 million for renovations at lodges, cabins, campgrounds and the like as well as for a 12,000-acre purchase that will expand six existing state forests and two wildlife areas.
• $208 million for infrastructure upgrades at Department of Developmental Disabilities centers.
• $122.3 million for statewide facility and IT improvements.

Data Center Bill stalls:

The legislature worked furiously on HB 646 which will set up a data center study commission and tackle issues around data centers in Ohio but it did not pass. Although it passed the Ohio Senate, the House lacked the votes to concur, with disagreements over data center tax incentives and nondisclosure language.

Below is a bullet point summary of the version of HB 646 is being negotiated:

• Expands and refines job creation tax credits tied to payroll growth and investment
• Allows sales/use tax exemptions for qualifying data center equipment
• Limits local property tax abatements to 50% of increased property value and requires performance-backed security
• Defines large-scale “megaprojects” (including major semiconductor-type projects)
• Large data centers greater than 250 MW must offset their electric demand via self-generation or dedicated supply arrangements
• All electricity costs must be on the data centers, not shifted to other ratepayers
• Utilities must create separate rate structures specifically for data centers
• Data centers are not eligible for standard service offer (SSO)
• Requires annual reporting of water usage and implementation of conservation practices
• Mandates use of efficient liquid cooling systems and water recycling when feasible
• Requires wastewater monitoring systems and quarterly reporting
• Establishes fees to fund environmental oversight
• Clarifies that public records cannot be hidden by NDAs
• Includes recoupment provisions if companies fail to meet commitments (jobs, payroll, investment)
• Requires ongoing compliance to maintain tax benefits
• Allows state to recover incentives or reduce benefits for noncompliance
• Requires local governments to:
• Secure guarantees (bond/cash) before granting incentives
• Track job and payroll commitments
• Directs state agencies to provide guidance to local governments on data center incentives

The legislature does not intend to be back before the elections in November, we will keep you posted if things change.