Compilation of Rules and Regulations of the State of Georgia
Department 560 - RULES OF DEPARTMENT OF REVENUE
Chapter 560-12 - SALES AND USE TAX DIVISION
Subject 560-12-2 - SUBSTANTIVE RULES AND REGULATIONS
Rule 560-12-2-.117 - High-Technology Data Center Equipment
Universal Citation: GA Rules and Regs r 560-12-2-.117
Current through Rules and Regulations filed through March 20, 2024
(1) Purpose. This Rule addresses the sales and use tax exemption in O.C.G.A. § 48-8-3(68.1) for certain High-Technology Data Center Equipment.
(2) Definitions. For purposes of this Rule, the following definitions apply:
(a) "Data Center Owner" means the owner of a
High-Technology Data Center or any Related Members.
(b) "Exemption Start Date," used synonymously
with the term "Investment Start Date," means the date on or after July 1, 2018,
chosen by the Data Center Owner and indicated on its certificate of exemption
application, which begins the seven-year period during which the Minimum
Investment Threshold must be met.
(c) "High-Technology Data Center" means a
facility, campus of facilities, or array of interconnected facilities in this
state that:
1. Is developed to power, cool,
secure, and connect the Data Center Owner's equipment or the computer equipment
of the Data Center Owner's High-Technology Data Center Customers;
2. Has an investment budget plan that meets
the High-Technology Data Center Minimum Investment Threshold; and
3. Is located wholly within one county in
this state, unless otherwise approved by the Commissioner.
(d) "High-Technology Data Center Customer"
means a client, tenant, licensee, or end user of a High-Technology Data Center
that is a party to a contract with a Data Center Owner that holds a
High-Technology Data Center exemption certificate under this Rule. The contract
is subject to the requirements in paragraph (2)(d)1.
1. Contract Requirements.
(i) The Data Center Owner must be a party to
the contract;
(ii) The contract
must be for data center services provided by the Data Center Owner at the
High-Technology Data Center location stated on the Data Center Owner's
High-Technology Data Center exemption certificate; and
(iii) The initial term of the contract must
be at least 36 months.
2.
A client, tenant, licensee, or end user of a High-Technology Data Center is a
High-Technology Data Center Customer only while such client, tenant, licensee,
or end user is a party to a contract described in paragraph (2)(d)1.
3. The initial term of the contract may begin
before the Exemption Start Date for purposes of meeting the initial 36-month
term. However, the High-Technology Data Center Customer may only make exempt
purchases and uses of High-Technology Data Center Equipment during the period
set forth in paragraph (3)(b).
4.
If a qualifying contract is extended for any consecutive term after the initial
term, the customer remains a High-Technology Data Center Customer during such
term so long as the requirements of this Rule are met.
(e) "High-Technology Data Center Equipment."
1. Subject to the exclusion in paragraph
(2)(e)2., High-Technology Data Center Equipment means:
(i) Computer equipment, as defined in
O.C.G.A. §
48-8-3(68), of a
Data Center Owner or such equipment of a High-Technology Data Center Customer
that is used or deployed in the High-Technology Data Center; and
(ii) The Data Center Owner's or
High-Technology Data Center Customer's materials, components, machinery,
hardware, software, or equipment, including but not limited to, emergency
backup generators, air handling units, cooling towers, energy storage or energy
efficiency technology, switches, power distribution units, switching gear,
peripheral computer devices, routers, batteries, wiring, cabling, or conduit,
which equipment or materials are used to:
(I)
Create, manage, facilitate, or maintain the physical and digital environments
for computer equipment in the High-Technology Data Center;
(II) Protect the High-Technology Data Center
Equipment from physical, environmental, or digital threats; or
(III) Generate or provide constant delivery
of power, environmental conditioning, air cooling, or telecommunications
services for the High-Technology Data Center.
2. This term does not include Real Property,
as defined in this Rule.
(f) "High-Technology Data Center Minimum
Investment Threshold," used synonymously with the term "Minimum Investment
Threshold," means:
1. Creating and maintaining
an average of the qualifying number of New Quality Jobs during the Investment
Period as described in paragraph (4); and
2. Making the qualifying aggregate
expenditures during the Investment Period, as described in paragraph
(4).
(g) "Investment
Period" means the seven-year period, chosen by the Data Center Owner, during
which the Minimum Investment Threshold must be met.
1. The Investment Period begins on the
Investment Start Date.
2. The
Investment Period ends seven consecutive years after the Investment Start Date
on the same month and date as the Investment Start Date.
3. The Investment Period may be any
consecutive seven-year period that begins on or after July 1, 2018, and ends on
or before December 31, 2031.
(h) "New Quality Job" means a new quality
job, as defined in O.C.G.A. §
48-7-40.17(a)(2),
that is created and maintained by the Data Center Owner or its customers and
that meets the requirements in paragraph (4).
(i) "Real Property" means land, any buildings
thereon, and any fixtures attached thereto. Fixtures are tangible personal
property that has been installed or attached to land or to any building thereon
and that is intended to remain permanently in its place. A consideration for
whether tangible property is a fixture is whether its removal would cause
significant damage to such property or to the real property to which it is
attached.
(j) "Related Member"
means a related member as defined in O.C.G.A. §
48-7-28.3 with respect to the
owner of a High-Technology Data Center.
(3) Scope of the Exemption.
(a) The purchase and use of High-Technology
Data Center Equipment to be incorporated or used in a High-Technology Data
Center are exempt from state and local sales and use tax, subject to the
following conditions:
1. The High-Technology
Data Center Equipment must be incorporated or used in the High-Technology Data
Center named or described on the Data Center Owner's exemption
certificate;
2. The purchaser must
be a Data Center Owner or a High Technology Data Center Customer;
3. Such Data Center Owner must meet the
High-Technology Data Center Minimum Investment Threshold at the High-Technology
Data Center named or described on the Data Center Owner's exemption
certificate;
4. Such Data Center
Owner must obtain a certificate of exemption; and
5. If the purchaser is a High-Technology Data
Center Customer, the High-Technology Data Center Customer must obtain a
certificate of exemption.
(b) Subject to the terms and conditions of
this Rule,
1. A Data Center Owner holding a
High-Technology Data Center exemption certificate may make exempt purchases and
uses of High-Technology Data Center Equipment from the Exemption Start Date
through and including December 31, 2031; and
2. A High-Technology Data Center Customer
holding an exemption certificate may make exempt purchases and uses of
High-Technology Data Center Equipment only during the effective dates on its
exemption certificate.
(i) A High-Technology
Data Center Customer exemption certificate is effective beginning the later of
the Data Center Owner's Exemption Start Date or the start date of the contract
for data center services between the Data Center Owner and the High-Technology
Data Center Customer. A High-Technology Data Center Customer exemption
certificate ends the earlier of the date such contract ends or December 31,
2031.
(4) Minimum Investment Threshold.
(a) To meet the
High-Technology Data Center's Minimum Investment Threshold, the following
conditions must be met:
1. An average of the
qualifying number of New Quality Jobs must be created and maintained, as set
forth in paragraphs (4)(b) and (c), during the Investment Period; and
2. The required amount of qualifying
aggregate expenditures must be spent, as set forth in paragraphs (4)(b) and
(d), during the Investment Period.
(b) The New Quality Jobs and aggregate
expenditure requirements are based on the population of the county in which the
High-Technology Data Center is located as reported in the United States
decennial census of 2010. If county population data from a more recent United
States decennial census is available as of the Investment Start Date, county
population must be based upon such data.
1.
For Data Center Owners that apply for and receive a High-Technology Data Center
exemption certificate prior to May 9, 2022, the New Quality Jobs and aggregate
expenditure requirements are as follows:
(i)
For a High-Technology Data Center located in a county in this state having a
population greater than 50,000:
(I) An average
of 20 New Quality Jobs; and
(II)
$250 million in qualifying aggregate expenditures.
(ii) For a High-Technology Data Center
located in a county in this state having a population greater than 30,000 and
less than 50,001:
(I) An average of 20 New
Quality Jobs; and
(II) $150 million
in qualifying aggregate expenditures.
(iii) For a High-Technology Data Center
located in a county in this state having a population less than 30,001:
(I) An average of 20 New Quality Jobs;
and
(II) $100 million in qualifying
aggregate expenditures.
2. For Data Center Owners that apply for and
receive a High-Technology Data Center exemption certificate on or after May 9,
2022, the Data Center Owner must meet the following New Quality Jobs and
aggregate expenditure requirements during the Investment Period, even if the
Investment Start Date begins before May 9, 2022:
(i) For a High-Technology Data Center located
in a county in this state having a population greater than 50,000:
(I) An average of 25 New Quality Jobs;
and
(II) $250 million in qualifying
aggregate expenditures.
(ii) For a High-Technology Data Center in a
county in this state having a population greater than 30,000 and less than
50,001:
(I) An average of 10 New Quality Jobs;
and
(II) $75 million in qualifying
aggregate expenditures.
(iii) For a High-Technology Data Center
located in a county in this state having a population less than 30,001:
(I) An average of 5 New Quality Jobs;
and
(II) $25 million in qualifying
aggregate expenditures.
(c) New Quality Jobs.
1. An employee occupying a New Quality Job
must:
(i) Regularly work 30 hours or more per
week in the county where the High-Technology Data Center is located on matters
directly related to the High-Technology Data Center; and
(ii) Receive compensation for such work
described in paragraph (4)(c)1.(i) in an amount equaling or exceeding 110% of
the average wage for all industries of the county where the High-Technology
Data Center is located, as reported in the most recent Georgia Employment &
Wages report available on the day that the New Quality Job is first filled
during the Investment Period. The county average wage remains constant with
respect to that job position for the duration of the Investment
Period.
2. For purposes
of satisfying the Minimum Investment Threshold, a Data Center Owner may count
New Quality Jobs created and maintained by the Data Center Owner and New
Quality Jobs created and maintained by the Data Center Owner's
customers.
3. To determine the
average number of New Quality Jobs created and maintained during the Investment
Period, a Data Center Owner must count the number of New Quality Jobs on the
payroll by the last payroll period of each month during the Investment Period,
add the monthly numbers, and divide the sum by the number of months in the
Investment Period.
(d)
Qualifying Aggregate Expenditures.
1.
Qualifying expenditures are:
(i) Expenditures
on the design and construction of the High-Technology Data Center (including
expenditures on Real Property); and
(ii) High-Technology Data Center Equipment to
be used or incorporated in the High-Technology Data Center.
2. Qualifying expenditures made by
either the Data Center Owner or the High-Technology Data Center Customer may
count towards the Minimum Investment Threshold.
3. Real Property expenditures count towards
the Minimum Investment Threshold only to the extent that the expenditures are
made by the Data Center Owner as part of the construction and design of the
High-Technology Data Center. The purchase of a pre-existing High-Technology
Data Center campus does not constitute "the construction and design of the
High-Technology Data Center" and therefore does not count toward the Minimum
Investment Threshold. While Real Property expenditures may count toward the
Minimum Investment Threshold, Real Property is not exempt under this
Rule.
4. If a qualifying
expenditure is made pursuant to a lease, the term of which extends before or
after the Investment Period, the expenditure amount that may be used for
purposes of satisfying the expenditure requirement must be determined by
dividing the total amount to be paid pursuant to the lease by the number of
calendar years in the lease term and then multiplying that quotient by the
number of calendar years in the lease term that are during the Investment
Period.
5. A Data Center Owner may
not count the purchase or lease of the same High-Technology Data Center
Equipment more than once. For example, if a Data Center Owner purchases
High-Technology Data Center Equipment and subsequently leases it to a
High-Technology Data Center Customer or a related member (as defined at
O.C.G.A. §
48-7-28.3), only one transaction,
either the original purchase or the subsequent lease, may count for purposes of
satisfying the Minimum Investment Threshold.
(5) Certificates of Exemption.
(a) Application Process.
1. A Data Center Owner or High-Technology
Data Center Customer desiring to secure the benefits of the exemption provided
by O.C.G.A. §
48-8-3(68.1) must file an
application for a certificate of exemption.
2. Only the owner of the High-Technology Data
Center or one Related Member may apply for a certificate of exemption for a
High-Technology Data Center.
3.
Applications must be filed electronically with the Department.
4. A High-Technology Data Center exemption
application may request the applicant's legal name, mailing address, the
High-Technology Data Center location, Investment Start Date, the applicant's
Georgia income tax filing and payment history, the value of the applicant's
title or interest in Real Property owned in this state, a limited waiver of
confidentiality for the administration of this exemption, documentation
sufficient to show the likelihood of satisfying the High-Technology Data Center
Minimum Investment Threshold, and any other information required by the
Department for the determination of the claim for exemption.
5. A High-Technology Data Center Customer
exemption application may request the applicant's legal name, mailing address,
name of the Data Center Owner that holds an exemption certificate and that has
contract with the applicant to provide data services at the High-Technology
Data Center listed on the Data Center Owner's exemption certificate, a copy of
such contract for data center services, and any other information required by
the Department for the determination of the claim for exemption.
(i) The Department will not issue a
certificate of exemption to a High-Technology Data Center Customer until a
certificate of exemption has been issued to its corresponding Data Center
Owner.
6. This
application requirement is applicable to holders of direct payment permits
granted under Regulation
560-12-1-.16.
(b) Issuance of Certificate.
1. Upon approval of the application,
including a determination that a Data Center Owner will more likely than not
meet the Minimum Investment Threshold, the Department will issue a certificate
of exemption to such Data Center Owner.
2. A certificate of exemption issued to a
High-Technology Data Center Customer is for the exclusive use of the qualifying
applicant. A certificate of exemption issued to a Data Center Owner is for the
exclusive use of the owner of the High-Technology Data Center and its Related
Members but may be transferrable upon the sale of the High-Technology Data
Center and the approval of the Commissioner.
(c) Bond.
1.
As a condition precedent to the issuance of a certificate of exemption to a
Data Center Owner, the Department, in the Commissioner's discretion, may
require a good and valid bond with a surety company authorized to do business
in this state.
2. In determining
whether to require a bond and the value of such bond, the Commissioner will
consider factors, including, but not limited to, the value of the Data Center
Owner's title or interest in Real Property owned in this state as of the
application date and the Data Center Owner's Georgia tax filing and payment
history.
3. If required, the bond
must be in an amount fixed by the Department, not to exceed $20
million.
4. Such bond must be
forfeited and paid to the general fund in an amount representing all taxes and
interest required to be repaid if the Data Center Owner fails to meet the
Minimum Investment Threshold prior to the expiration of the seven-year
Investment Period.
5. Such bond
will be released when the Data Center Owner timely meets the Minimum Investment
Threshold.
6. High-Technology Data
Center Customers are not required to obtain a bond.
(d) Revocation.
1. A certificate of exemption issued pursuant
to this exemption to a Data Center Owner is subject to revocation if the
Department determines that such Data Center Owner has not complied with the
provisions of the exemption, including, but not limited to, the following:
(i) During the Investment Period, the
Department determines that the Data Center Owner is not likely to meet the
applicable Minimum Investment Threshold;
(ii) At the conclusion of the Investment
Period, the Department determines the Data Center Owner failed to meet the
applicable Minimum Investment Threshold;
(iii) The Data Center Owner does not file the
annual report as required in paragraph (7); or
(iv) The Data Center Owner claims an income
tax credit in violation of paragraph (9).
2. A certificate of exemption issued pursuant
to this Rule to a High-Technology Data Center Customer is subject to revocation
if the Department determines that such certificate holder has not complied with
the provisions of the exemption, including, but not limited to, the following:
(i) The certificate of exemption of its
corresponding Data Center Owner is revoked; or
(ii) The High-Technology Data Center Customer
is not, or is no longer, a party to a contract in accordance with paragraph
(2)(d).
3. Revocation
procedures for Data Center Owner's certificates of exemption.
(i) If it is determined that there are
grounds for revocation of a Data Center Owner's certificate of exemption, the
Department will send written notice to the Data Center Owner stating the
grounds for revocation. Effective the 31st day
following the date of the notice, the Department will revoke the Data Center
Owner's certificate of exemption, unless:
(I)
within 30 days from the date of the notice, the Data Center Owner provides the
Department with a detailed plan to remedy each cause for revocation;
and
(II) the Department determines
that the Data Center owner is more likely than not to remedy each cause for
revocation within 90 days from the Department's receipt of the plan.
(ii) If the Department determines
that the Data Center Owner has failed to remedy each cause for revocation
within 90 days from the Department's receipt of the plan, then the Department
will revoke the Data Center Owner's certificate of exemption effective the
91st day after the Department's receipt of the plan.
The Department will notify the Data Center Owner in writing of the grounds for
revocation, the revocation date, and the procedure by which the certificate
holder may dispute the revocation.
4. Once a certificate of exemption has been
revoked, the certificate holder must immediately notify all vendors to which
such certificate holder furnished the certificate of exemption that such
certificate of exemption is no longer valid. The certificate holder must
maintain records of notifications of revocation sent to vendors.
5. It is unlawful for any person to attempt
to evade sales and use taxes by using a certificate of exemption obtained
through fraud or by using a certificate of exemption to which a purchaser is
not entitled.
6. Upon the
revocation of the Data Center Owner's certificate of exemption, the owner of
the High-Technology Data Center and its Related Members will be liable for all
tax exempted or refunded under this exemption, plus interest as computed under
O.C.G.A. §
48-2-40. If tax and interest are
not paid within 90 days of the revocation of the certificate of exemption,
penalties will accrue pursuant to O.C.G.A. §
48-8-66.
7. If a High-Technology Data Center
Customer's certificate of exemption is revoked, the customer, the owner of the
customer's corresponding High-Technology Data Center, and the owner's Related
Members may be liable, as provided below, for all tax exempted or refunded
under this exemption on the customer's purchases, plus interest as computed
under O.C.G.A. §
48-2-40. If tax and interest are
not paid within 90 days of the revocation of the certificate of exemption,
penalties will accrue pursuant to O.C.G.A. §
48-8-66.
(i) If a High-Technology Data Center
Customer's certificate of exemption is revoked solely because its corresponding
Data Center Owner's certificate of exemption is revoked, the High-Technology
Data Center Customer is not required to repay the tax exempted or refunded
under this exemption on the customer's purchases. The owner of the customer's
corresponding High-Technology Data Center and the owner's Related Members are
required to repay such tax.
(ii) If
a High-Technology Data Center Customer certificate of exemption is revoked
because the certificate holder does not meet the definition of High-Technology
Data Center Customer, the purported customer is required to repay the tax
exempted or refunded under this exemption for periods when the purported
customer did not meet the definition of High-Technology Data Center
Customer.
(iii) If a
High-Technology Data Center Customer's certificate of exemption is revoked
solely because of the expiration of a qualifying contract with a certificated
Data Center Owner, neither the High-Technology Data Center Customer nor the
Data Center Owner is required to repay the tax exempted or refunded for periods
when the customer met the definition of a High-Technology Data Center
Customer.
8. Nothing in
this Rule prohibits the reinstatement or reissuance of a certificate of
exemption to a qualified Data Center Owner or its customer.
(e) All certificates of exemption
issued to Data Center Owners pursuant to this exemption expire on December 31,
2031, by operation of law.
(6) Claiming the Benefit of the Exemption.
(a) Any person making a sale
or lease of High-Technology Data Center Equipment must collect the sales and
use tax unless the purchaser furnishes such seller with a valid and complete
certificate of exemption.
(b) A
High-Technology Data Center Equipment supplier is relieved from the collection
of sales and use tax on the sale or lease of High-Technology Data Center
Equipment if the supplier takes a certificate of exemption from a certificate
holder in good faith.
(c) Refund
Claims.
1. Subject to paragraph (6)(c)5. of
this Rule and other applicable laws, a refund claim may be filed for taxes paid
on purchases or uses qualifying for this exemption for any period on or after
July 1, 2018, during which the Data Center Owner or customer had not yet
applied for or received its certificate of exemption from the
Department.
2. Claimants must
submit refund claims electronically.
3. As a condition precedent to the issuance
of a refund, the claimant must apply for and receive its certificate of
exemption.
4. As provided by
O.C.G.A. §
48-2-35.1, refunds issued pursuant
to this exemption do not bear interest.
5. A refund claim may be filed by the
taxpayer at any time within three years after the date of the payment of the
tax to the Department.
(d) Notwithstanding otherwise applicable
recordkeeping requirements, any Data Center Owner or High-Technology Data
Center Customer claiming the benefit of this exemption must keep and preserve
all books and records as long as needed to support such claim.
(7) Annual Report.
(a) Each Data Center Owner holding an
exemption certificate pursuant to this Rule must submit an annual report
electronically to the Department. The annual report is due on the dates set
forth in this paragraph or the first day following that is not a Saturday,
Sunday, legal holiday, or day on which the Federal Reserve Bank is closed.
1. The annual report must be submitted by
April 30 of each calendar year if the Data Center Owner or its High-Technology
Data Center Customer claimed or will claim the benefit of the exemption for
purchases in the prior calendar year.
2. Notwithstanding paragraph (7)(a)(1), if
the Data Center Owner's Investment Start Date begins in a calendar year prior
to the calendar year of application, the annual report(s) for those prior
year(s) are due 30 days following the date the Department grants the exemption
certificate or April 30th of the year of
application, whichever is later.
(i) Example:
If the Department grants an exemption certificate on January 1, 2021 to a Data
Center Owner with an investment start date of July 1, 2018, the annual reports
for years 2018 through 2020 are due on April 30, 2021. The annual report for
2021 is due May 2, 2022 (because April 30, 2022 is a Saturday).
(ii) Example: If the Department grants an
exemption certificate on April 15, 2021 to a Data Center Owner with an
investment start date of July 1, 2018, the annual reports for years 2018 to
2020 are due May 17, 2021 (because May 15, 2021 is a Saturday). The annual
report for 2021 is due May 2, 2022 (because April 30, 2022 is a
Saturday).
3. The
Department may exercise its discretion to approve a Data Center Owner's request
for an extension beyond the applicable deadline.
4. The annual reporting requirement does not
end at the expiration of the Investment Period. The annual report is required
for every year in which the Data Center Owner holds a valid exemption
certificate pursuant to this Rule.
(b) The annual report must include the
following:
1. The amount of tax exempted or
refunded under this exemption on purchases by the owner of the High-Technology
Data Center and its Related Members during the preceding calendar
year;
2. A list of the Data Center
Owner's High-Technology Data Center Customers holding exemption certificates
under this Rule;
3. The amount of
tax exempted or refunded under this exemption on purchases by each
High-Technology Data Center Customer during the preceding calendar
year;
4. The number of New Quality
Jobs created or maintained in accordance with paragraph (4) on a monthly basis
during the preceding calendar year;
5. A list of each New Quality Job created and
maintained in accordance with paragraph (4), including a description of each
position, each position's wage, each position's regular work hours, and the
location at which each position's job duties are performed;
6. A methodology to verify that employees are
working at least 30 hours per week on matters directly related to the
High-Technology Data Center in the county where the High-Technology Data Center
is located;
7. The total amount of
High-Technology Data Center's employee payroll during the preceding calendar
year;
8. The total amount of
qualifying aggregate expenditures made since the Investment Start Date that the
Data Center Owner counts for purposes of satisfying the expenditure requirement
of its Minimum Investment Threshold. This amount does not need to be reported
after the Data Center Owner submits its investment report as described in
Paragraph (8) of this Rule at the conclusion of the Investment Period;
and
9. A list of expenditures that
count toward the Data Center Owner's Minimum Investment Threshold, including
the dollar amount of each purchase, the name of the purchaser, the date of
purchase, the vendor, and description of the purchase. This list is not
required after the Data Center Owner submits its investment report as described
in paragraph (8) of this Rule at the conclusion of the Investment
Period.
(c) A Data Center
Owner's failure to submit a complete and accurate annual report is grounds for
the revocation of the Data Center Owner's certificate of
exemption.
(8) Investment Report.
(a) Within 60
days after the end of the Investment Period, the Data Center Owner must file a
report electronically with the Department.
(b) The report must detail the following:
1. The expenditures incurred that count
toward its Minimum Investment Threshold, including the name of the purchaser,
the expenditure date, the vendor, the dollar amount, and a description of each
purchase;
2. The average number of
New Quality Jobs created and maintained during the Investment Period, as
calculated in paragraph (4)(c);
3.
A description of each position and each position's wage and regular work hours;
and
4. Any other information that
the Commissioner may reasonably require to determine whether the Data Center
Owner has met the Minimum Investment Threshold.
(c) If it is determined that a Data Center
Owner failed to meet its Minimum Investment Threshold, such owner of the
High-Technology Data Center and its Related Members must repay all taxes
exempted or refunded pursuant to the Data Center Owner's certificate of
exemption and all taxes exempted or refunded pursuant to the certificates of
exemption of the Data Center Owner's High-Technology Data Center Customers.
1. Interest will be due at the rate specified
in O.C.G.A. §
48-2-40 computed from the date
such taxes would have been due but for this exemption.
2. Such repayment of taxes and interest must
be made within 90 days after notification of such failure.
3. Such repayment will be calculated
notwithstanding otherwise applicable periods of limitation for
assessment.
(9) Impact on Certain Income Tax Credits.
(a) During any tax year in which a Data
Center Owner holds a valid exemption certificate under this Rule with respect
to a High-Technology Data Center, the owner of such High-Technology Data Center
is not entitled to claim any credit authorized under O.C.G.A. §§
48-7-40 through
48-7-40.33 or O.C.G.A. §
36-62-5.1 for jobs, investments,
or any business activity created by, arising from, related to, or connected in
any way with such High-Technology Data Center.
(b) A Related Member is not entitled to claim
any credit authorized under O.C.G.A. §§
48-7-40 through
48-7-40.33 or O.C.G.A. §
36-62-5.1 in any tax year for
jobs, investments, or any business activity created by, arising from, related
to, or connected in any way with a High-Technology Data Center, if, during that
tax year such Related Member or the associated owner of such High-Technology
Data Center holds a valid exemption certificate and the Related Member takes
any of the following actions:
1. Makes
expenditures for such High-Technology Data Center that count toward the Minimum
Investment Threshold;
2. Makes
exempt purchases of High-Technology Data Center Equipment that is used or
deployed in such High-Technology Data Center;
3. Employs persons to fill New Quality Jobs
at such High-Technology Data Center; or
4. Contracts with High-Technology Data Center
Customers for data center services at such High-Technology Data
Center.
(c) If a
determination is made by the Department that the Data Center Owner must repay
all taxes exempted or refunded pursuant this exemption, the owner of the
High-Technology Data Center and its Related Members may, notwithstanding
otherwise applicable periods of limitation, file amended income tax returns
claiming any credit to which they would have been entitled under O.C.G.A.
§§
48-7-40 through
48-7-40.33 or O.C.G.A. §
36-62-5.1 but for having claimed
the exemption set forth in this Rule.
O.C.G.A. §§ 48-2-12, 48-7-40.17, 48-8-3, 48-8-3.2.
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