All Roll Calls
Yes: 250 • No: 46
South CarolinaH 5122126th General Assembly (2025-2026)House
AN ACT TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING ARTICLE 31 TO CHAPTER 9, TITLE 58 SO AS TO PERMIT CERTAIN ITEMS SOLD TO OR USED BY INTERNET ACCESS SERVICE PROVIDERS AND COMMUNICATIONS SERVICE PROVIDERS TO BE EXEMPT FROM SALES TAX, TO ESTABLISH A PROCESS FOR REFUNDS ON TAXES PAID ON EXEMPT ITEMS, AND TO PROHIBIT DATA CENTERS FROM CLAIMING OR UTILIZING THESE EXEMPTIONS OR REFUNDS.
Sponsored By: Brandon Newton (Republican)
Signed by Governor
Summary
Internet and Communications Service Providers Equipment
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Sales tax break for internet and phone providers
Beginning in 2026, internet access and communications providers do not pay state or local sales and use tax on supplies, equipment, machinery, or electricity used to deliver their services. The law treats these providers as manufacturers for this exemption. Providers can also get refunds of any state or local sales and use tax they paid on items that are exempt. File refund claims by January 31 for the prior calendar year; the Department totals claims by May 1 and pays refunds by June 1. If total claims are over $10 million, each refund is cut pro‑rata so the total paid equals $10 million.
Large data centers lose tax break
Data centers cannot claim the new sales tax exemption or refunds for internet and communications providers. A covered data center is a facility, campus, or connected set of facilities under one electric supply agreement in South Carolina that stores, retrieves, or transmits data. It must have a contractual peak demand of 50 megawatts or more and become an electric customer after December 31, 2026. Sites run by telecommunications companies, or that mainly support telecom service or network operations, are excluded. Peak demand is set by the contract; short spikes do not change the classification.
Sponsors & Cosponsors
Sponsor
Brandon Newton
Republican • House
Cosponsors
Carl L. Anderson
Democrat • House
Nathan Ballentine
Republican • House
Bruce W. Bannister
Republican • House
Gary S. Brewer, Jr.
Republican • House
Cody T. Mitchell
Republican • House
Micajah P. "Micah" Caskey IV
Republican • House
Gilda Cobb-Hunter
Democrat • House
Sylleste H. Davis
Republican • House
G. Murrell Smith, Jr.
Republican • House
Craig A. Gagnon
Republican • House
Jerry N. Govan, Jr.
Democrat • House
Hamilton R. Grant
Democrat • House
Thomas Duval "Val" Guest, Jr.
Republican • House
William G. "Bill" Herbkersman
Republican • House
David R. Hiott
Republican • House
Leon Howard
Democrat • House
Roger K. Kirby
Democrat • House
M. Brian Lawson
Republican • House
Marvin "Mark" Smith
Republican • House
Thomas E. "Tommy" Pope
Republican • House
Seth Rose
Democrat • House
J. Todd Rutherford
Democrat • House
Carla M. Schuessler
Republican • House
Richard L. "Richie" Yow
Republican • House
Roll Call Votes
House vote • 5/14/2026
(Internet and Communications Service Providers Equipment)Concur in Senate Amendments
Yes: 92 • No: 18
Senate vote • 5/12/2026
(Internet and Communications Service Providers Equipment)3rd Reading
Yes: 35 • No: 8
Senate vote • 5/7/2026
(Internet and Communications Service Providers Equipment)2nd Reading
Yes: 41 • No: 5
House vote • 4/30/2026
(Internet and Communications Service Providers Equipment)Passage of Bill
Yes: 82 • No: 15
Actions Timeline
Effective date See Act for Effective Date
6/5/2026legislatureAct No. 242
6/3/2026legislatureSigned By Governor
5/19/2026GovernorRatified R 258
5/15/2026legislatureRoll call Yeas-92 Nays-18
5/14/2026HouseConcurred in Senate amendment and enrolled
5/14/2026HouseRoll call Ayes-35 Nays-8
5/12/2026SenateRead third time and returned to House with amendments
5/12/2026SenateAmendment Reconsidered
5/12/2026SenateRead second time
5/7/2026SenateScrivener's error corrected
5/7/2026legislatureAmended
5/6/2026SenateRecalled from Committee on Judiciary
5/5/2026SenateReferred to Committee on Judiciary
5/5/2026SenateIntroduced and read first time
5/5/2026SenateRead third time and sent to Senate
5/1/2026HouseUnanimous consent for third reading on next legislative day
4/30/2026HouseRoll call Yeas-82 Nays-15
4/30/2026HouseRead second time
4/30/2026HouseAmended
4/30/2026HouseMember(s) request name added as sponsor: Govan
4/30/2026HouseDebate adjourned
4/29/2026HouseCommittee report: Favorable with amendment Ways and Means
4/28/2026HouseMember(s) request name added as sponsor: Davis
4/23/2026HouseMember(s) request name added as sponsor: Caskey
4/1/2026House
Bill Text
Introduced
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