HB559: HB559 Sales and use tax; exemption for certain high-technology data center equipment; revise sunset date

Georgia currently exempts certain high-technology data center equipment from sales and use tax under O.C.G.A. § 48-8-3, for qualifying data centers that meet a minimum investment threshold. That exemption was set to run from July 1, 2018 through December 31, 2031. This bill changes the end date of that exemption to December 31, 2026, cutting the exemption period short by five years. No other parts of the exemption, including the investment threshold or other qualifying conditions, are changed by this bill. The bill also includes a standard repeal of any conflicting laws.

• Moves the expiration date of the high-technology data center equipment sales tax exemption from December 31, 2031 to December 31, 2026.
• Leaves the rest of the exemption's rules unchanged, including the minimum investment threshold data centers must meet to qualify.
• Repeals any other Georgia laws that conflict with this change.

Companies that build or operate large, qualifying high-technology data centers in Georgia and rely on this sales tax break for equipment purchases, as well as the state revenue system that collects sales and use tax.

Data center operators would have five fewer years to buy exempted equipment tax free, which could affect the cost calculations behind planned or future data center investments in Georgia and the amount of sales tax revenue the state eventually collects from this industry.

• Section 1 amends subparagraph (A) of paragraph (68.1) of O.C.G.A. § 48-8-3 to change the exemption's end date from December 31, 2031 to December 31, 2026.
• Section 1 keeps the exemption's start date of July 1, 2018 and its requirement that data centers meet a minimum investment threshold and other stated conditions.
• Section 2 repeals any conflicting laws, a standard closing provision.

1. 2025-02-21House Second Readers (House)
2. 2025-02-20House First Readers (House)
3. 2025-02-20House Hopper (House)

• John Carson (R, HD-046)Primary sponsor
• Clint Crowe (R, HD-118)
• Charles Martin (R, HD-049)
• Debbie Buckner (D, HD-137)
• Spencer Frye (D, HD-122)

• sales tax exemption
• data centers
• tax policy
• economic development