SB 410: State Sales and Use Taxes; the data center equipment sales and use tax exemption; repeal

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Discussed in meetings (9)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

1. Senate Finance Committee, January 28, 2026

   From 0:39:36 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The sponsor said SB 410 would end new data center sales tax exemption approvals while preserving exemptions approved before the bill became law through the existing 2032 sunset. The sponsor supported keeping data centers in Georgia but said proposed projects were dividing communities and many would come without incentives. The sponsor said protecting existing approvals avoided withdrawing benefits used to attract investment. The chair explained that the fiscal note estimated $77 million in savings in 2027 and $555 million in 2030, with savings limited by existing approvals and companies’ ability to use another computer-equipment exemption until it expires. A committee member questioned protecting business benefits when retiree cost-of-living benefits had previously been withdrawn. Witnesses for Atlanta North Georgia Building Trades and IBEW Local 613 opposed the bill, describing recurring construction, equipment replacement and permanent jobs. A Data Center Coalition witness warned that changing incentives would undermine predictability and send investment elsewhere, and disputed the study’s estimate of incentives’ influence. A former Atlanta development authority member questioned local tax benefits, saying three Fulton County facilities with $2 billion in market value generated about $2 million before abatements because of their appraisals. No vote was taken.

2. Senate Finance Committee, March 2, 2026

   From 0:40:29 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The presenter explained a substitute combining the utility-cost language previously considered in SB 34 with restrictions on new equipment tax exemptions. The presenter said the shared goal was to keep residential and retail electricity customers from bearing the added costs of serving large customers such as data centers. The substitute added a statement of legislative intent to that effect. The presenter explained that this statement would appear in code notes, not the enforceable statutory text. Asked about its practical effect, a committee member with legal expertise said courts might consult it, but some courts focus only on statutory wording. The presenter said the tax provisions would stop new exemption certificates while preserving existing recipients and leaving expiration dates unchanged. The chair identified those dates as January 1, 2028, for computer equipment and January 1, 2032, for data center equipment. One member supported the compromise but expressed concern that ending the exemptions could affect Georgia's business environment and requested future discussion before expiration. The committee approved the substitute, with the chair describing the vote as unanimous.

3. Senate Rules Committee, March 5, 2026

   From 0:43:47 · Watch on the General Assembly's Vimeo channel

   Summary by Georgia Commons: The chair, presenting SB 410, said it would end sales-tax exemptions for equipment used in future data-center projects while preserving exemptions for existing projects. The chair said the proposal had been expanded to cover both high-technology and computer equipment. The chair also said it incorporated committee language from SB 34 intended to keep data-center service costs off other customers' bills, along with language addressing system-upgrade costs. Later, the chair cited that incorporation when declining a request to add SB 34 separately. The committee unanimously included SB 410 in the floor-calendar package.

4. Senate floor session, March 6, 2026 (legislative day 28, part 1)

   From 1:05:46 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

   Summary by Georgia Commons: The sponsor said SB 410 would end new data-center and high-technology equipment sales-tax exemptions while preserving existing certificates through their expiration dates. The committee substitute also added utility contract requirements for large electricity users. The sponsor said these requirements would prevent households and other retail customers from paying for data-center infrastructure. After a separate procedural vote of 32 to 22 to bar floor amendments, the chair ruled two proposed amendments out of order. One member questioned whether the bill's statement of intent was enforceable; the sponsor acknowledged it would appear in code notes rather than the code itself. The Finance Committee chair supported the bill as a start but said it did not protect customers from costs of power capacity built for demand that never materializes. That member said the two tax exemptions had grown to about $2.5 billion. Other opponents raised noise, water and community concerns. Another opponent argued that data-center contracts could expire long before customers finished paying for new power plants. The sponsor maintained that the contract language protected customers. The Senate adopted the substitute and passed the bill, 32 to 21.

• Read aloud: Senate floor session, January 16, 2026 (legislative day 5), 0:19:29
• Read aloud: Senate floor session, March 3, 2026 (legislative day 26), 0:31:06
• Read aloud: Senate floor session, March 4, 2026 (legislative day 27), 0:47:55
• Read aloud: House floor session, March 9, 2026 (legislative day 29), 0:50:44
• Read aloud: House floor session, March 10, 2026 (legislative day 30), 0:41:51

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