---
title: SB 408. State Sales and Use Taxes; data center equipment sales and use tax exemption; advance the sunset date
collection: bills
id: 2025-2026/sb408
cite_as: SB 408, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb408
md_url: https://georgiacommons.org/bills/2025-2026/sb408.md
text_url: https://georgiacommons.org/bills/2025-2026/sb408/text
source_url: https://www.legis.ga.gov/legislation/72283
date: 2026-01-16
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/sb407.md
next: https://georgiacommons.org/bills/2025-2026/sb409.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 95
omitted_url: https://georgiacommons.org/bills/2025-2026/sb408.md?full=1
bill_number: SB 408
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-01-15
last_action: Senate Read and Referred
sponsors:
  - Nan Orrock
  - Greg Dolezal
  - Blake Tillery
  - Russ Goodman
  - Sam Watson
  - Sonya Halpern
  - Ed Setzler
  - Freddie Sims
  - Elena Parent
  - Max Burns
  - Harold Jones
  - Kim Jackson
  - Jaha Howard
  - Sally Harrell
  - RaShaun Kemp
  - Kenya Wicks
  - Nabilah Islam Parkes
  - Nikki Merritt
  - Gail Davenport
  - Sheikh Rahman
  - Ed Harbison
  - Michael Rhett
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB408/2025
upstream_id: 2083454
summaries_model: claude-sonnet-5
topic_tags:
  - sales tax exemptions
  - data centers
  - state tax policy
  - economic development incentives
---

# SB 408. State Sales and Use Taxes; data center equipment sales and use tax exemption; advance the sunset date

## Text

Senate Bill 408
By: Senators Orrock of the 36th, Dolezal of the 27th, Tillery of the 19th, Goodman of the
8th, Watson of the 11th and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia
Annotated, relating to general provisions relative to state sales and use taxes, so as to
advance the sunset date for the data center equipment sales and use tax exemption; to provide
for related matters; to provide for an effective date; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated,
relating to general provisions relative to state sales and use taxes, is amended by revising
subparagraph (H) of paragraph (68.1) of Code Section 48-8-3, relating to exemptions relative
to state sales and use taxes, as follows:
"(H) This paragraph shall stand repealed by operation of law on January 1, <del>2032</del> <ins>2027;"
</ins> SECTION 2.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

A Georgia Senate bill would move up the expiration date of the state's sales and use tax exemption for data center equipment from January 1, 2032 to January 1, 2027.

### Plain-language summary

Georgia currently exempts certain data center equipment purchases from state sales and use taxes under O.C.G.A. § 48-8-3, with that exemption set to expire automatically on January 1, 2032. This bill changes only that expiration date, moving it up five years to January 1, 2027.
The bill does not otherwise change who qualifies for the exemption or what equipment it covers; it simply shortens how long the tax break will remain available before it ends automatically. If enacted, the law would take effect as soon as the Governor signs it or it becomes law without his signature.

### What it does

- Moves the automatic repeal date of the data center equipment sales and use tax exemption from January 1, 2032 to January 1, 2027.
- Leaves all other terms of the exemption in O.C.G.A. § 48-8-3 unchanged, affecting only when it expires.
- Sets the effective date as immediate upon the Governor's signature or the bill becoming law without his signature.

### Who it affects

Companies that build or operate data centers in Georgia and currently rely on the sales and use tax exemption for data center equipment, as well as the state revenue collected from sales taxes on that equipment once the exemption ends earlier than planned.

### Why it matters

Data center operators would have five fewer years to buy equipment tax-free under this exemption than current law allows, meaning the tax break would end in 2027 instead of 2032, potentially raising costs for future data center purchases in Georgia.

### Key provisions

- Section 1 amends subparagraph (H) of paragraph (68.1) of O.C.G.A. § 48-8-3 to change the exemption's sunset date from January 1, 2032 to January 1, 2027.
- Section 2 makes the Act effective immediately upon the Governor's approval or upon becoming law without approval.
- Section 3 repeals any conflicting laws.

## Status

- Status: Introduced (2026-01-15)
- Last action: Senate Read and Referred (2026-01-16)
- Sponsors: Nan Orrock, Greg Dolezal, Blake Tillery, Russ Goodman, Sam Watson, Sonya Halpern, Ed Setzler, Freddie Sims, Elena Parent, Max Burns, Harold Jones, Kim Jackson, Jaha Howard, Sally Harrell, RaShaun Kemp, Kenya Wicks, Nabilah Islam Parkes, Nikki Merritt, Gail Davenport, Sheikh Rahman, Ed Harbison, Michael Rhett
- Official page: https://www.legis.ga.gov/legislation/72283

> The history, votes, and amendments (95 characters) are at https://georgiacommons.org/bills/2025-2026/sb408.md?full=1