Scope
Section 44.4 of North Carolina Session Law 2026-41 (Senate Bill 257), headed "Repeal sales tax exemption on electricity for datacenters", rewrites G.S. 105-164.13(55) and (55a) to remove the sales and use tax exemptions for electricity used at eligible internet datacenters and qualifying datacenters, leaving the equipment and business-property exemptions in those subdivisions. Section 44.4(b) makes it effective when it becomes law for electricity billed and sold on or after that date.
- Geographic scope
- North Carolina
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- North Carolina General Assembly
Dates
- Adopted
- 7 July 2026
- Effective
- 7 July 2026
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The section states no expiration. Session Law 2026-42 later set the repeal to apply from the first billing period at least 30 days after enactment.
- Source document
- 7 July 2026
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
Section 44.4 of North Carolina Session Law 2026-41, approved on 7 July 2026, repealed the sales tax exemptions for electricity used at eligible internet datacenters and qualifying datacenters by striking the electricity language from G.S. 105-164.13(55) and (55a), and took effect when it became law. The datacenter equipment exemptions in the same subdivisions were not repealed. Session Law 2026-42, approved the same day, changed when the repeal applies to electricity bills.
What this does not establish
- The repealed electricity exemptions are not stored as a separate record because the equipment-exemption record already uses the G.S. 105-164.13 page as its primary source; this record is the amending instrument only.
- The related records are nc-gs-105-164-13-55-55a-datacenter-equipment-exemptions and nc-sl2026-42-sec11-3-datacenter-electricity-applicability-and-reporting.
- The rest of the 2026 budget act is not part of this record.
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.ncleg.gov/EnactedLegislation/SessionLaws/HTML/2025-2026/SL2026-41.html