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SB 410

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

2025-2026 Regular Session Introduced by John Albers and 15 co-sponsors

Georgia would eliminate the sales tax exemption for data center equipment purchases, increasing operating costs for server facilities and generating state revenue while risking tech sector competitiveness.

Senate Passed/Adopted By Substitute
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Bill Summary · SB 410

Legislative bill overview

SB 410 would repeal Georgia's existing sales and use tax exemption for data center equipment. Currently, data centers can purchase servers, networking equipment, and related machinery without paying state sales tax. This bill eliminates that exemption, making data center equipment purchases subject to the standard Georgia sales tax.

Why is this important

Data center tax exemptions are significant economic incentives states use to attract tech companies and cloud infrastructure investments. Repealing this exemption would increase operating costs for data centers in Georgia and could affect the state's competitiveness in attracting or retaining major tech investments, while simultaneously generating additional state tax revenue that could be used for other priorities.

Potential points of contention

  • Economic development impact: Supporters of data centers argue the exemption attracts high-value companies and jobs; repealing it may discourage future investments or cause existing operators to relocate
  • Revenue generation vs. job creation: The state would gain tax revenue but may lose economic activity, tax jobs, and indirect economic benefits from data center operations
  • Competitive disadvantage: Neighboring states with similar exemptions could become more attractive to data center developers, potentially shifting regional investment patterns

Compiled from official sources — confirm details with the bill’s official record.

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