To qualify for the high-technology data center equipment exemption, a data center must create 25 new quality jobs and incur at least $250 million in aggregate expenditures if located in a county with more than 50,000 people; 10 jobs and $75 million if located in a county with 30,001 to 50,000 people; or 5 jobs and $25 million if located in a county with fewer than 30,001 people. The expenditures must occur over a consecutive seven-year period. Minimum investment thresholds

The high-technology data center equipment exemption is available only for the specified period ending December 31, 2031, and the provision is repealed beginning January 1, 2032. Exemption period

For the separate high-technology company computer-equipment exemption that may apply to data center equipment, the company must make at least $15 million in qualifying taxable purchases or leases during the calendar year and obtain an exemption certificate. At least $15 million

Beginning January 1, 2024, the first $15 million of eligible computer-equipment purchases or leases is not fully exempt; the claimant must pay 10 percent of the taxes imposed on that amount, increasing the cost of qualifying equipment. Paying 10 percent

The computer-equipment exemption excludes telephone central-office and other voice-data-transport equipment, equipment primarily used for training, product testing, or manufacturing, devices issued to employees such as smartphones and laptops, and prewritten computer software. The term shall not include

A seller may not treat a computer-equipment sale or lease as exempt unless the purchaser provides a certificate issued by the Department of Revenue, and the commissioner may require a bond or legal securities as a condition of issuing the certificate. Certificate issued by the commissioner

A company holding a computer-equipment exemption certificate must annually report the facilities receiving the exempt equipment and the amount of tax exempted. The Department of Revenue may deny a certificate for the following calendar year if the company fails to file the report. Report annually

An affiliated entity using the computer-equipment exemption must conduct at least a majority of its business with unaffiliated entities, limiting eligibility for data-center projects operated through affiliated companies. At least a majority of its business

Provides a sales and use tax exemption for high-technology data center equipment incorporated into or used in a qualifying data center. The exemption applies only if the facility meets the applicable job-creation and aggregate-investment threshold.

Lowers the qualification thresholds for data centers in smaller counties: facilities in counties with populations from 30,001 to 50,000 must create 10 new quality jobs and make $75 million in aggregate expenditures, while facilities in counties with populations below 30,001 must create 5 jobs and make $25 million in aggregate expenditures. Expenditures may be incurred over any consecutive seven-year period.

Extends the availability of the high-technology data center equipment exemption for qualifying facilities through December 31, 2031, with the provision repealing on January 1, 2032.

Allows qualifying high-technology companies, including companies using covered data-center-related computer equipment, to receive a sales and use tax exemption on eligible computer equipment purchases or leases exceeding $15 million in a calendar year. Beginning January 1, 2024, the first $15 million of eligible purchases is taxed at 10 percent of the otherwise applicable tax, and amounts above $15 million remain exempt.

A data center or customer cannot receive the sales-tax exemption unless the commissioner determines that the data center is more likely than not to meet the required investment threshold and issues an exemption certificate.

The data center must create 20 new quality jobs and meet a minimum investment threshold during a consecutive seven-year period: $250 million in counties with populations over 50,000, $150 million in counties with populations over 30,000 but under 50,001, or $100 million in counties with populations under 30,001.

The commissioner may require information demonstrating compliance with the data center’s investment budget plan and may revoke the exemption certificate if the center is no longer likely to meet the required threshold.

Within 60 days after the seventh year following the exemption start date, the data center must file a final report documenting qualifying expenditures and new quality jobs; failure to meet the threshold requires repayment of all exempted or refunded taxes plus interest within 90 days.

As a condition of receiving the exemption, the commissioner may require a surety bond of up to $20 million, which may be forfeited to cover taxes and interest owed if the data center fails to meet the investment threshold.

The data center must file annual reports stating the amount of taxes exempted, the number of new quality jobs, and total payroll from construction, maintenance, and operation, and the commissioner must report exemption and job figures to legislative committee chairs.

A data center receiving the exemption must provide the commissioner with a list of customers deploying equipment at the facility and must report any change to that list within 30 days.

A data center receiving the exemption cannot claim specified Georgia income-tax or development-authority credits while using the exemption; it may claim otherwise available credits through amended returns only if it later repays the exempted or refunded taxes.

A high-technology data center customer must sign a service contract with the data center lasting at least 36 months to qualify as an eligible customer.

Only qualifying high-technology data center equipment may count toward the investment threshold; real property is excluded, and equipment purchased by the center or its customer and subsequently leased to another party may not be counted more than once.

Sellers and lessors must collect sales tax unless the purchaser provides a commissioner-issued exemption certificate, and purchases made before the certificate is obtained require a refund claim rather than immediate exemption.

The exemption applies only to transactions occurring on or after July 1, 2018, and the provision is automatically repealed on January 1, 2029.

[ { "provision": "Provides a Georgia state sales-and-use-tax exemption from July 1, 2018, through December 31, 2028, for qualifying high-technology data center equipment." }, { "provision": "Extends the exemption beyond servers and other computer equipment to infrastructure used to power, cool, secure, connect, and operate a data center, including generators, air-handling units, cooling towers, energy-storage or efficiency technology, switching equipment, routers, batteries, wiring, cabling, and conduit; real property is excluded.", }, { "provision": "Allows equipment owned by a qualifying high-technology data center customer to qualify when the customer has at least a 36-month service contract with the data center." }, { "provision": "Creates county-based investment thresholds, reducing the required capital expenditure for facilities in less-populated counties: $250 million in counties over 50,000 people, $150 million in counties with more than 30,000 but fewer than 50,001 people, and $100 million in counties under 30,001 people. Each facility must also create 20 new quality jobs." }, { "provision": "Permits qualifying facilities to meet the investment threshold over any consecutive seven-year period and to seek refunds for qualifying taxes paid on or after July 1, 2018, before the facility applied for and received its exemption certificate." }, { "provision": "Permits sellers to avoid collecting sales tax when the purchaser provides a commissioner-issued exemption certificate, subject to the commissioner determining that the facility is more likely than not to meet the required investment threshold." } ]

A qualifying data center must be located wholly within one Georgia county unless the Commissioner approves otherwise. located wholly within one county

The data center must satisfy a seven-year minimum investment threshold involving both qualifying jobs and aggregate expenditures. For applications received on or after May 9, 2022, the requirements range from an average of 25 jobs and $250 million in expenditures in counties over 50,000 people, to an average of 5 jobs and $25 million in expenditures in counties under 30,001 people. must meet the following New Quality Jobs and aggregate expenditure requirements

Each qualifying job must generally involve at least 30 hours of work per week in the data-center county on directly related matters, with compensation of at least 110% of the countywide average wage. Regularly work 30 hours or more per week

Only specified expenditures count toward the investment threshold. Real-property spending counts only when the owner incurs it for designing and constructing the data center; buying a pre-existing data-center campus does not count. The purchase of a pre-existing High-Technology Data Center campus does not constitute

Real property itself is excluded from the sales-and-use-tax exemption, even though certain owner construction expenditures for real property may count toward the investment threshold. Real Property is not exempt under this Rule

The owner or one related member must apply for the data-center exemption certificate electronically, and the Department must determine that the owner is more likely than not to satisfy the minimum investment threshold before issuing the certificate. Only the owner of the High-Technology Data Center or one Related Member may apply

The Commissioner may require the data-center owner to post a bond as a condition of receiving the exemption certificate, with the bond capped at $20 million. may require a good and valid bond

A data-center customer must have a qualifying contract with the owner: the owner must be a party, the contract must cover data-center services at the certified location, and its initial term must be at least 36 months. the initial term of the contract must be at least 36 months

Exempt equipment must be used or incorporated at the certified data-center location, must be purchased by an eligible owner or customer, and cannot include real property. The High-Technology Data Center Equipment must be incorporated or used in the High-Technology Data Center

The owner may not count the same equipment purchase and subsequent lease more than once toward the minimum investment threshold. may not count the purchase or lease of the same High-Technology Data Center Equipment more than once

Sellers must collect sales and use tax unless the purchaser provides a valid and complete exemption certificate; customers can use the exemption only during the certificate's effective period, and owner certificates expire by law on December 31, 2031. must collect the sales and use tax unless the purchaser furnishes

Certificate holders must submit annual electronic reports, generally by April 30 when exempt purchases were claimed or will be claimed for the prior year, and the reporting obligation continues while the owner holds a valid certificate. Each Data Center Owner holding an exemption certificate

Within 60 days after the seven-year investment period ends, the owner must file an electronic investment report detailing qualifying expenditures, average jobs, wages, work hours, and other information requested by the Commissioner. Within 60 days after the end of the Investment Period

Failure to meet the investment threshold can require repayment of all taxes exempted or refunded for both the owner and its customers, plus interest, generally within 90 days after notification. must repay all taxes exempted or refunded

The Department may revoke the owner's certificate if the owner is unlikely to meet the threshold, ultimately fails to meet it, fails to file the annual report, or improperly claims specified income-tax credits. subject to revocation if the Department determines

While holding a valid exemption certificate, the data-center owner cannot claim Georgia income-tax credits for jobs, investments, or related business activity connected with the data center; related members may also lose access to those credits when they take specified data-center-related actions. is not entitled to claim any credit

Refund claims for qualifying taxes paid before a certificate was obtained require the claimant to first obtain the certificate, must be filed electronically, and are subject to a three-year filing limit; refunds do not bear interest. A refund claim may be filed by the taxpayer at any time within three years

The exemption is temporary: owner purchases are allowed only from the selected exemption start date through December 31, 2031, and the statutory exemption is repealed by operation of law on January 1, 2032. ending on December 31, 2031

Exempts qualifying high-technology data center equipment from state and local sales and use tax, including equipment used for computing, power, cooling, security, environmental conditioning, and telecommunications. The purchaser must be the data center owner or a qualifying customer, and the required exemption certificate must be obtained.

Allows qualifying customers, not just data center owners, to use the equipment exemption. A customer must have a contract with the owner for data center services at the certified location with an initial term of at least 36 months and must obtain its own exemption certificate.

Allows data center owners to claim the exemption from the selected exemption start date through December 31, 2031, while customer certificates generally run from the later of the owner's start date or the customer's contract start date until the earlier of contract termination or December 31, 2031.

Permits refunds for qualifying sales and use taxes paid on or after July 1, 2018, even if the claimant had not yet applied for or received its exemption certificate when the purchases occurred. Claims must be filed electronically within three years after payment, and refunds do not bear interest.

Counts design and construction expenditures, qualifying equipment purchases, and certain qualifying leases toward the investment threshold. Expenditures by either the owner or its customers may count, although the same equipment cannot be counted more than once.

Uses county population tiers to provide lower investment thresholds for smaller counties. For certificates issued on or after May 9, 2022, the required seven-year investment is $250 million and an average of 25 new quality jobs in counties over 50,000 people; $75 million and 10 jobs in counties over 30,000 but under 50,001 people; or $25 million and 5 jobs in counties under 30,001 people.

Allows the Commissioner to require a data center owner bond of no more than $20 million, rather than imposing a mandatory bond of a fixed amount; qualifying customers are not required to obtain a bond.

Allows an owner's exemption certificate to be transferred upon sale of the data center, subject to the Commissioner's approval, which can preserve the exemption in a change of ownership.

Provides a cure process before revocation of an owner's certificate: after written notice, the owner generally has 30 days to submit a remediation plan, and the Department may allow up to 90 days to remedy the stated causes.

Protects a customer from repaying its exempted taxes when the customer's certificate is revoked solely because the corresponding owner's certificate was revoked; the owner and related members bear the repayment obligation instead.

Relieves equipment suppliers from collecting sales and use tax when they accept a valid exemption certificate from a certificate holder in good faith, facilitating tax-free purchases for qualifying projects.