---
title: SB 410. State Sales and Use Taxes; the data center equipment sales and use tax exemption; repeal
collection: bills
id: 2025-2026/sb410
cite_as: SB 410, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb410
md_url: https://georgiacommons.org/bills/2025-2026/sb410.md
text_url: https://georgiacommons.org/bills/2025-2026/sb410/text
source_url: https://www.legis.ga.gov/legislation/72285
date: 2026-03-10
status: engrossed
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.
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omitted: votes and history
omitted_chars: 902
omitted_url: https://georgiacommons.org/bills/2025-2026/sb410.md?full=1
bill_number: SB 410
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2026-03-06
last_action: House Second Readers
sponsors:
- Matt Brass
- Jason Anavitarte
- Chuck Hufstetler
- John Albers
- Larry Walker
- Kay Kirkpatrick
- Blake Tillery
- Greg Dolezal
- Shawn Still
- Mike Hodges
- Drew Echols
- Ricky Williams
- Brian Strickland
- Russ Goodman
- Bo Hatchett
- Chuck Payne
- Steven McNeel
text_version: Engrossed
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB410/2025
upstream_id: 2083481
summaries_model: claude-sonnet-5
topic_tags:
- sales tax exemptions
- data centers
- electric utility rates
- Public Service Commission
- state tax policy
---
# SB 410. State Sales and Use Taxes; the data center equipment sales and use tax exemption; repeal
## Text
Senate Bill 410
By: Senators Brass of the 6th, Anavitarte of the 31st, Hufstetler of the 52nd, Albers of the
56th, Walker III of the 20th and others
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 2 of Title 46 and Chapter 8 of Title 48 of the Official Code of Georgia
Annotated, relating to the Public Service Commission and sales and use taxes, respectively,
so as to require certain contract terms and conditions between electric utilities and large load
customers; to repeal the high-technology computer equipment and data center equipment
sales and use tax exemptions; to allow for the continued use of certificates of exemption
issued prior to the date of repeal; to provide for legislative intent; to provide for a definition;
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:
PART I
SECTION 1-1.
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.
SECTION 1-2.
Chapter 2 of Title 46 of the Official Code of Georgia Annotated, relating to the Public
Service Commission, is amended by adding a new Code section to read as follows:
"46-2-25.4.
(a) As used in this Code section, 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.
(b) Each contract between an electric utility and a large load customer for the provision
of electric service, entered into on or after the effective date of this Act, shall include terms
and conditions designed to protect residential and retail electricity customers from costs
associated with serving new large load customers, including, but not limited to, the
following:
(1) Minimum billing requirements designed to recover incremental costs associated with
serving or preparing to serve a large load customer;
(2) A contract term that may exceed the length of the applicable service tariff;
(3) Performance and credit provisions designed to protect retail customers in the event
of contract default; and
(4) Termination provisions designed to protect retail customers in the event of
termination of the contract for electric service."
PART II
SECTION 2-1.
Chapter 8 of Title 48 of the Official Code of Georgia Annotated, relating to sales and use
taxes, is amended by repealing paragraphs (68) and (68.1) of Code Section 48-8-3, relating
to exemptions relative to state sales and use taxes, and enacting new paragraphs to read as
follows:
"(68) 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 as they existed prior to the effective date of this Act; provided, however,
that any certificate of exemption issued prior to the effective date of this Act shall
continue to be governed by the provisions of this paragraph as it existed immediately
prior to the effective date of this Act;
(68.1) After the effective date of this Act, no new certificates of exemption from sales
and use tax to a high-technology data center or a high-technology data center customer
shall be issued pursuant to the former provisions of this paragraph as they existed prior
to the effective date of this Act; provided, however, that any certificate of exemption
issued prior to the effective date of this Act shall continue to be governed by the
provisions of this paragraph as it existed immediately prior to the effective date of this
Act;"
PART III
SECTION 3-1.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 3-2.
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 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.
### Plain-language summary
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 it 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.
## Status
- Status: Engrossed (2026-03-06)
- Last action: House Second Readers (2026-03-10)
- Sponsors: Matt Brass, Jason Anavitarte, Chuck Hufstetler, John Albers, Larry Walker, Kay Kirkpatrick, Blake Tillery, Greg Dolezal, Shawn Still, Mike Hodges, Drew Echols, Ricky Williams, Brian Strickland, Russ Goodman, Bo Hatchett, Chuck Payne, Steven McNeel
- Official page: https://www.legis.ga.gov/legislation/72285
> The history, votes, and amendments (902 characters) are at https://georgiacommons.org/bills/2025-2026/sb410.md?full=1