Georgia CommonsSB 410: State Sales and Use Taxes; the data center equipment sales and use tax exemption; repeal
Last action March 10, 2026 · House Second Readers
A Georgia Senate bill would end new sales tax exemptions for high-tech computer and data center equipment, and require electric utilities to write contract protections for ratepayers when serving very large power customers like data centers.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Engrossed version, the latest LegiScan holds.
In plain language
Georgia currently lets high-technology companies and data centers apply for certificates that exempt their computer equipment purchases from state sales and use tax. This bill stops the state from issuing any new certificates of exemption under those two provisions (O.C.G.A. § 48-8-3, paragraphs 68 and 68.1) after the bill takes effect, though businesses that already hold a certificate can keep using it under the old rules. The bill also adds a new section to the law governing the Public Service Commission (O.C.G.A. § 46-2-25.4). It defines a 'large load customer' as one needing 100 megawatts or more of peak power at a single site or connected tracts of land, a threshold aimed at large data centers and industrial users. Any new contract between an electric utility and such a customer must include billing minimums, contract length terms, performance and credit safeguards, and termination provisions designed to keep the costs of serving these big customers off the bills of residential and retail electricity customers. The law would take effect as soon as the Governor signs it.
What the bill does
- Repeals the ability to issue new sales and use tax exemption certificates for high-technology companies and high-technology data centers or their customers, effective once the bill becomes law.
- Preserves exemption certificates already issued before the effective date, letting existing holders keep using them under the prior rules.
- Creates a new Public Service Commission code section requiring contracts with 'large load customers' (100 megawatts or more of peak demand) to include cost-protection terms for other ratepayers.
- Requires those contracts to include minimum billing requirements, contract terms that can outlast standard tariffs, credit and performance safeguards, and termination protections.
- States the General Assembly's intent that the extra costs of serving new large-load customers fall on those customers rather than residential or retail electricity customers.
Who it affects
High-technology companies and data centers seeking new state sales tax breaks, electric utilities negotiating contracts with very large power users, large industrial or data center customers needing 100+ megawatts of power, and residential and retail electricity customers whose rates the bill aims to shield from those costs.
Why it matters
Data centers and other large power users would no longer get new state sales tax breaks on equipment, potentially raising their costs of doing business in Georgia. At the same time, new rules would push utilities to structure contracts so that ordinary electricity customers do not end up subsidizing the power needs of these large operations.
Key provisions
- Section 1-1 states the General Assembly's intent that large-load customers, not residential or retail customers, bear the marginal cost of serving them.
- Section 1-2 adds O.C.G.A. § 46-2-25.4, defining 'large load customer' as one with 100 megawatts or more of expected peak demand on one or more premises on connected land.
- Section 1-2 requires new electric utility contracts with large load customers to include minimum billing requirements, extended contract terms, credit/performance provisions, and termination protections.
- Section 2-1 repeals and reenacts O.C.G.A. § 48-8-3 paragraphs (68) and (68.1), barring new sales and use tax exemption certificates for high-technology companies and high-technology data centers.
- Section 2-1 grandfathers in certificates issued before the bill's effective date, letting them continue under the prior law.
- Section 3-1 sets the effective date as the date the Governor signs the bill or it otherwise becomes law without signature.
From the bill
“the term 'large load customer' means customers with an expected total peak demand of 100 megawatts or greater at one or more premises located on one tract or contiguous tracts of land”
“After the effective date of this Act, no new certificates of exemption from sales and use tax to a high-technology company shall be issued pursuant to the former provisions of this paragraph”
“It is the intent of the General Assembly that the marginal costs of providing electric service to new large-load customers will be borne by such customers and not residential or retail electricity customers.”
Status timeline
- House Second Readers (House)
- House First Readers (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
Show full history (9 actions)
- Senate Hopper (Senate)
Sponsors
- Matt Brass (R, SD-006)
- Jason Anavitarte (R, SD-031)
- Chuck Hufstetler (R, SD-052)
- John Albers (R, SD-056)
- Larry Walker (R, SD-020)
- Kay Kirkpatrick (R, SD-032)
- Blake Tillery (R, SD-019)
- Greg Dolezal (R, SD-027)
- Shawn Still (R, SD-048)
- Mike Hodges (R, SD-003)
- Drew Echols (R, SD-049)
- Ricky Williams (R, SD-025)
- Brian Strickland (R, SD-042)
- Russ Goodman (R, SD-008)
- Bo Hatchett (R, SD-050)
- Chuck Payne (R, SD-054)
- Steven McNeel (R, SD-018)
Votes
- Senate voteMarch 6, 2026
32 yea, 22 nay (1 not voting, 0 absent)
- Senate voteMarch 6, 2026
32 yea, 21 nay (1 not voting, 1 absent)
Topics
- sales tax exemptions
- data centers
- electric utility rates
- Public Service Commission
- state tax policy