The US state of Georgia is looking to extend the life of its data center tax exemptions rules by another five years.
Georgia introduced its current sales tax exemptions for data centers in 2018 through HB 696. As with many such bills across the US, it provides exemptions if data centers meet certain investment and job creation thresholds over a set timeframe.
The new bill, HB 1187; Sales and use tax; exemption for certain high-technology data center equipment; extend sunset, extends the sunset of these exemptions from 2028 to 2033 and adds a job creation component for data centers located in counties with a population of less than 50,001. The updated bill, first reported by Eversheds-Sutherland, would also allow data centers located in counties with a population of less than 50,001 to qualify for certain income tax credits.
The bill is sponsored by Republican Representative Noel Williams, Jr. alongside fellow Republicans Micah Gravley, John Corbett, Matthew Gambill, Trey Rhodes, and Dale Washburn.
A separate bill, HB 1291; Sales and use tax; exemption for sale or lease of computer equipment of high-technology companies; revise spending threshold and extend sunset date, would extend the sunset of the current exemption to December 31, 2023. This change is necessary since qualification for the exemption is measured by qualifying purchases made on a calendar year basis.
Beginning in 2024, a revised exemption would impose tax on 10 percent of the first $15 million of qualifying purchases, with no tax on purchases beyond that threshold. The bill would modify qualifying purchases (required to meet the $15 million threshold) to include only taxable purchases and leases, specifically excluding pre-written computer software (electronically delivered or otherwise) as a qualifying purchase.
This bill is sponsored by Republican Representative Vance Smith, alongside Williams Jnr, Marcus Wiedower, Bruce Williamson, and Democrat Spencer Frye.
Both bills passed the House this month and are now moving to the Senate.