SB408: SB408 State Sales and Use Taxes; data center equipment sales and use tax exemption; advance the sunset date

Georgia currently exempts certain purchases of data center equipment from state sales and use tax, under a provision in O.C.G.A. § 48-8-3 that is set to expire, or 'sunset,' automatically on January 1, 2032. This bill changes that expiration date to January 1, 2027, moving it five years earlier. The bill makes no other changes to the exemption itself, such as who qualifies or what equipment counts. It would take effect as soon as the Governor signs it, or if it becomes law without the Governor's signature.

• Moves the automatic repeal date of the data center equipment sales and use tax exemption (O.C.G.A. § 48-8-3) from January 1, 2032 to January 1, 2027.
• Leaves all other terms of the exemption unchanged, including which equipment and purchasers qualify.
• Sets the effective date as the date the Governor signs the bill or it otherwise becomes law without a signature.
• Repeals any existing state laws that conflict with this change.

Companies that build or operate data centers in Georgia and rely on the sales and use tax exemption for equipment purchases, as well as the Georgia Department of Revenue, which administers the exemption and would need to apply the earlier cutoff date.

If enacted, data centers would lose the state sales and use tax break on qualifying equipment five years sooner than current law allows. That could raise costs for future equipment purchases made after January 1, 2027, affecting decisions about building or expanding data centers in Georgia.

• Section 1 revises subparagraph (H) of paragraph (68.1) of O.C.G.A. § 48-8-3 to change the exemption's automatic repeal date from January 1, 2032 to January 1, 2027.
• Section 2 sets the effective date as upon the Governor's approval or the bill otherwise becoming law without approval.
• Section 3 repeals any conflicting laws.

1. 2026-01-16Senate Read and Referred (Senate)
2. 2026-01-15Senate Hopper (Senate)

• Nan Orrock (D, SD-036)Primary sponsor
• Greg Dolezal (R, SD-027)
• Blake Tillery (R, SD-019)
• Russ Goodman (R, SD-008)
• Sam Watson (R, SD-011)
• Sonya Halpern (D, SD-039)
• Ed Setzler (R, SD-037)
• Freddie Sims (D, SD-012)
• Elena Parent (D, SD-044)
• Max Burns (R, SD-023)
• Harold Jones (D, SD-022)
• Kim Jackson (D, SD-041)
• Jaha Howard (D, SD-035)
• Sally Harrell (D, SD-040)
• RaShaun Kemp (D, SD-038)
• Kenya Wicks (D, SD-034)
• Nabilah Islam Parkes (D, SD-007)
• Nikki Merritt (D, SD-009)
• Gail Davenport (D, SD-017)
• Sheikh Rahman (D, SD-005)
• Ed Harbison (D, SD-015)
• Michael Rhett (D, SD-033)

• sales tax exemptions
• data centers
• state tax policy
• business incentives