JobsOhio
Ohio has not had a Democratic governor in the JobsOhio era. Gov.-elect Acton has pledged “a full, top-to-bottom review of JobsOhio, requiring more transparency and greater accountability.” She has not proposed abolishing it, and its structure makes a quick overhaul unlikely. JobsOhio is funded by the state liquor franchise, which was leased to a JobsOhio subsidiary in 2013 for 25 years, financed with about $1.5 billion in revenue bonds and later extended through 2053. That makes the budget a blunt tool for reshaping it. The state also agreed not to materially impair the bondholders’ pledge, which constrains any restructuring that touches the revenue stream.
The governor’s sharpest lever is appointments. Under Ohio Revised Code Section 187.01, the governor appoints all nine JobsOhio directors to staggered four-year terms and names the chair, with no legislative confirmation. A new administration can reshape the board as terms expire without passing any legislation. Lawmakers in both parties have raised concerns about JobsOhio’s transparency. In the current General Assembly, state Reps. Tristan Rader, a Democrat, and Justin Pizzulli, a Republican, introduced House Bill 779, the JobsOhio Transparency Act, which would require disclosure of sponsorships, biennial audits by the Auditor of State and annual testimony before the finance committees. That bill points to a likely area for bipartisan legislation in the next session.
Data Centers
One of the first decisions facing the new governor will likely be the data center sales tax exemption. According to the Ohio Department of Taxation, the exemption cost the state about $1.57 billion in 2025, more than 11 times what officials had projected. Gov. Mike DeWine vetoed a proposed repeal, and the override effort was abandoned in June 2026. The Tax Credit Authority has since paused new exemptions, and the new governor will have to decide whether to continue that pause. Existing exemptions remain in place, but the new administration will also need to decide whether to pursue clawbacks or early termination.
As examined during the campaign, Acton has proposed a conditional moratorium on new data centers. Projects would have to cover their own utility costs, use union labor, locate on brownfields rather than farmland, meet environmental standards and end nondisclosure agreements with local officials. She also favors clawbacks for missed job commitments. Because the Tax Credit Authority grants the exemption project by project, much of this can happen administratively, through the pace and terms of approvals or through enforcement of terms on existing incentives.
One additional item worth noting: 18 Ohio communities considered ballot measures that would ban or restrict data center development, and as of this writing, all appear poised to pass. The incoming administration and legislature will face pressure from industry to chart a path forward for data center development, which may be difficult given current voter sentiment.
Real Estate and Community Development Credits
The campaign said little about Ohio’s real estate tools. The state currently has programs that support brownfield remediation, historic rehabilitation, mixed-use development and housing. The incoming administration’s stated priorities on affordability, industrial land reuse and community benefit align with these existing programs, but the new budget will require negotiation over programmatic continuation and funding. The new administration may shift priorities or require additional community impact to secure these awards.
House Bill 96, the 2025 budget, left these programs in a strong but time-limited position:
| Program | HB 96 (FY2026-27) | What the next budget must decide |
| Brownfield Remediation Program | $100 million per year; $1 million reserved per county; merit-based awards; now covers demolition and infrastructure | New appropriation for FY2028-29 |
| Transformational Mixed-Use Development (TMUD) credit | Annual cap raised from $100 million to $125 million; per-project maximum cut to $20 million | Reauthorization; credits after FY2027 require new legislative action |
| Historic Preservation Tax Credit | Annual cap raised from $60 million to $75 million | Whether to hold, raise or trim the cap |
| Welcome Home Ohio and housing programs | $45 million per year; income limit raised to 120% of area median income | Renewal and funding level |
The TMUD sunset deserves particular attention. A program that needs affirmative reauthorization is exactly the kind of item that becomes a bargaining chip in a divided Statehouse. Sponsors of these programs, including municipalities, port authorities and developers with projects in the pipeline, will need to make their case early. A revised or replacement TMUD program is also an opportunity to adapt the credit to the economic environment of 2026 and beyond.
The Affordability Challenge
Acton has proposed several tax credits for working families that are projected to cost about $1 billion a year to alleviate the burden on working families. She has said she does not plan to raise taxes, so every tax expenditure will be weighed against that figure, and those costs will need to be offset elsewhere in the budget. The larger pressure is property taxes. The campaign to abolish local property taxes missed the 2026 ballot and is now targeting November 2027, halfway through this budget cycle. If 2027 is dominated by a property tax debate, it will shape the environment in which budget decisions are made, even without a direct budget impact. On net, a property tax reduction should stimulate development (setting aside the effect on public services or any increase in sales or income taxes to replace the revenue), but structure matters most. A substantial cut in homeowner property taxes could shift the burden to multifamily and commercial properties, which could slow construction in those markets.
Permitting Reform
Ohio has not faced the same pressure for permitting reform as other states. In 2026, however, several states passed initiatives to make it easier to build. Development professionals should take a serious look at opportunities to make construction faster and easier. Building code and zoning reforms should be on the table, potentially paired with incentives for affordability, density or sustainability. Whenever opportunities arise, stakeholders should put forward structures that streamline development and create by-right processes for projects that meet development goals, especially those that reduce the cost of housing.
What We Recommend Now
Developers with projects in the pipeline should pursue the final round of awards and commitments under the current budget before the FY2027 sunset to maximize certainty under current rules.
The economic development community needs to be prepared to play a constructive role in these coming conversations. Ohio has received good press in the past year as a place to do business. How can we keep that momentum going? JobsOhio has played a constructive role in landing new businesses and development in Ohio. How should transparency concerns be addressed without negatively impacting economic development? Are the current development incentives right for Ohio, or do they need to be changed in scale or scope? Are new incentives necessary – either at the state or local level? Economic Development professionals have both the hard data and anecdotal evidence to contribute to good policy-making and should be ready to come to the table.
Infrastructure, including data centers, will need to be addressed as well. The trend in real estate, especially industrial, has been to locate in and around electric infrastructure. Demand for power and data continues to grow and will be addressed in Ohio and elsewhere. Ohio has been a hub of data center development, and local concerns have been growing. A compromise that supports future development and good-paying construction jobs while maximizing community benefits could be on the table if stakeholders are willing to reach consensus.
Going forward, development professionals, property owners, developers and communities should take a hard look at what development needs in 2027 and beyond. The new environment may not be a clean slate, but it should be seen as an opportunity to put new ideas on the table. Now is the time to do the thinking and build the arguments that legislators and the new governor can rely on in spring 2027.
KJK’s Economic Development & Incentives team is monitoring the transition and the FY2028-29 budget process. If you have projects in the pipeline or want to position for the 2027 legislative session, contact David Ebersole (DME@kjk.com; 216.736.7235) or Rich Morehouse (RAM@kjk.com; 216.736.7292).