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

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.

• 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.

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.

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.

• 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.

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

• Nan Orrock (D, SD-036)Patrocinador principal
• 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
• economic development incentives