Scope
2026 South Carolina Act No. 242 (H. 5122, R. 258) adds Code section 58-9-3100, a sales tax exemption for supplies, technical equipment, machinery and electricity sold to internet access and communications service providers, and provides in subsection (C) that a data center may not claim or use that exemption or refund, defining "data center" for that purpose. It takes effect on the Governor's approval and applies to tax years beginning after 2025.
- Geographic scope
- South Carolina
- Jurisdiction
- State
- Authority type
- Legislature
- Issuing authority
- South Carolina General Assembly
Dates
- Adopted
- 19 May 2026
- Effective
- 19 May 2026
- Scheduled expiration
- See completion condition
- Ended
- Not recorded as ended
- Completion condition
- The act states no expiration.
- Source document
- The source page states no document date
- Last checked
- 23 September 2026 (earlier than tracker date 5 October 2026; not an automatic status change)
Summary
South Carolina Act No. 242 of 2026 (House Bill 5122) created a sales and use tax exemption for equipment and electricity bought by internet access and communications service providers but expressly bars data centers from claiming it. The Governor signed it on 19 May 2026, when it took effect, and it applies to tax years beginning after 2025. It does not change the separate datacenter exemption in section 12-36-2120(79).
What this does not establish
- The related record is sc-code-12-36-2120-79-datacenter-sales-tax-exemption.
- How the new provider exemption interacts with the datacenter exemption for mixed-use facilities was not analysed.
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 Datacenter equipment and electricity sales tax exemption (In effect)
Sources
https://www.scstatehouse.gov/sess126_2025-2026/bills/5122.htm