Scope
The North Carolina Department of Revenue Important Notice dated 23 July 2026, "Repeal of Exemptions for Electricity Used at Datacenters", explains that Session Law 2026-41 repealed the sales and use tax exemptions for electricity sold for use at certified datacenters effective 7 July 2026, that the repeal applies from the first billing period starting on or after 6 August 2026, and describes new datacenter reporting requirements and how purchasers and retailers should administer the change.
- Geographic scope
- North Carolina
- Jurisdiction
- State
- Authority type
- Government agency
- Issuing authority
- North Carolina Department of Revenue, Sales and Use Tax Division
Dates
- Adopted
- 23 July 2026
- Effective
- Not a binding measure
- Scheduled expiration
- None scheduled
- Ended
- Not recorded as ended
- Completion condition
- None stated
- Source document
- 23 July 2026
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
On 23 July 2026 the North Carolina Department of Revenue issued an Important Notice explaining the repeal of the sales tax exemptions for electricity used at certified datacenters by Session Law 2026-41. It states the repeal is effective 7 July 2026 and applies from the first billing period starting on or after 6 August 2026, and it describes the new quarterly datacenter electricity-tax reporting. The notice is administrative guidance; the binding rules are in the session laws.
What this does not establish
- The notice is guidance, recorded as informational; the repeal itself is in Session Law 2026-41 and the reporting duty in Session Law 2026-42.
- The related records are nc-gs-105-164-13-55-55a-datacenter-equipment-exemptions (which cites this notice as a supporting source) and nc-sl2026-42-sec11-3-datacenter-electricity-applicability-and-reporting.
Unresolved questions
None recorded.
Relationships
Supersession means a later instrument replaces the earlier legal effect. Repeal links identify the repeal instrument and the measure it ends. A later implementation or related letter is not treated as a replacement unless the record says so.
- Related, not a replacement Quarterly datacenter electricity-tax reporting (S.L. 2026-42) (In effect)
- Related, not a replacement Sales tax exemptions for datacenter equipment (G.S. 105-164.13) (In effect)
Sources
https://www.ncdor.gov/taxes-forms/sales-and-use-tax/other-sales-and-use-tax-resources/important-notices-issued-sales-and-use-tax-division/important-notice-repeal-exemptions-electricity-used-datacenters