ATLANTA – Georgia’s House of Representatives has passed a bill that would suspend the sales tax exemption the state has used since 2018 to attract big tech data centers.
House Bill 1192, which passed 96-71, would suspend the exemption for two years while a newly created commission investigates the impact data centers are having on Georgia’s power grid.
The data centers are disrupting the state’s power supply, with Georgia Power executives telling the state Public Service Commission last month that 80% of the additional power demand, for which the utility is seeking a significant increase in generation capacity, It was documented when he testified that he should be paid. To the data center.
“This is a huge subsidy for an industry that consumes tremendous amounts of resources, electricity and water,” Rep. Shaw Blackmon (R-Bonaire), chairman of the House Ways and Means Committee, said on the House floor Tuesday. ” he said.
Supporters of the bill emphasized that ending the tax exemption would not affect companies operating existing data centers.
“We’re not going to raise the bar from anyone looking to do business today,” said Rep. Chuck Martin, R-Alpharetta.
But opponents, including some legislators with data centers in their districts, have argued that the tax credits that the General Assembly approved just six years ago and extended into 2022 to attract fast-growing industries to Georgia will be suspended. They argued that stopping it would send the wrong message.
“We’ve sent a signal to this industry that Georgia is open for business,” said Rep. Matthew Gambill (R-Cartersville). Bartow County has a data center currently under construction that is expected to generate $44 million in tax revenue over the next 10 years.
“Don’t change the game in the middle and say Georgia is closed,” Gambill said.
House Minority Whip Sam Park, D-Lawrenceville, said House Bill 1192 is one of the few bills before the General Assembly that has drawn opposition from both businesses and workers. The Georgia Chamber of Commerce and the International Brotherhood of Electrical Workers oppose the bill.
“This bill is bad for business,” Park said. “It will cost thousands of jobs.”
The bill is currently before the Georgia Senate.
