Senate Finance Committee debates limiting data-center tax credits amid large fiscal estimates

Chairman Brass introduced a substitute that merges earlier bills affecting data-center construction credits and the computer-equipment sales-tax exemption, saying the draft prevents firms from claiming both incentives at the same time. "You can't double dip and get the computer equipment credit," he said, summarizing the substitute's core change.

The substitute would keep the computer-equipment exemption in place until Dec. 31, 2028, while the construction-credit language in the draft would stop issuance of new certificates and let existing certificates run only to Jan. 1, 2027. Legislative counsel confirmed the bill strikes paragraph 68.1 in its entirety and replaces it with the substitute text under OCGA 48-8-3.

Committee members pressed fiscal and policy details. A presenter cited figures from the fiscal materials that say the state would forgo about $761 million in sales-tax revenue in fiscal 2027 while collecting roughly $45 million in related revenue — a gap committee members described as significant. "We're spending 761 in state revenue to get 45 million in state revenue," the presenter said. The speaker added that combined foregone revenue from the two credits had grown since 2022 estimates and could approach more than a billion dollars in total.

Members also raised transparency limitations. Senators noted that Georgia State Fiscal Research was unable to obtain Department of Revenue breakdowns for earlier fiscal notes because confidentiality rules can prevent disclosure when too few taxpayers receive a credit; that limited some committee visibility into who benefits and by how much.

Policy choices remained contested. Some senators argued for stricter text that would explicitly bar data centers (as defined in code) from claiming the computer-equipment exemption; others said the substitute's approach—linking eligibility to the existence of a construction credit and setting sunsets—was intended both to prevent "switching" credits and to phase down incentives. Several members pressed for clearer grandfathering language so entities that were recruited under prior incentives would not lose promised benefits midterm.

Senator Alers said the committee is "not anti-data center," but argued legislators must weigh the net fiscal impact on Georgians. Another senator warned against changing sunsets midterm, calling it unfair to firms that located here under prior terms.

The chair described the substitute as a starting point and said the committee would continue refining sunsets, customer-eligibility language and alignment with other tax changes; no committee vote was taken on the substitute during the session.