North Carolina repeals sales tax exemptions for electricity used at certified datacenters
This page records one dated change. For the rules in United States as they stand today, see the United States guide →
- Jurisdiction
- United States
- Tax
- Sales tax
- Change type
- Update
- Status
- In force
- Impact
- Action required
- Announced
- 23 July 2026
- Effective
- 7 July 2026
- Authority
- North Carolina Department of Revenue
- Systems
- Tax engine, Invoicing, Reporting
- Verified
- Fetched from official source · high confidence
Operators and purchasers of electricity at certified datacenters in North Carolina.
Charge sales tax on datacenter electricity from the first billing period starting on or after 6 August 2026 and prepare the 30 October 2026 report.
Tax engineInvoicingReporting
NCDOR notice dated 23 July 2026: Session Law 2026-41 repeals the sales and use tax exemptions for electricity used at certified datacenters effective 7 July 2026, applying to billing periods starting on or after 6 August 2026; Session Law 2026-42 requires purchasers of such electricity to report tax paid quarterly, first report due 30 October 2026.
What changed in detail
In a notice dated 23 July 2026, the North Carolina Department of Revenue states that Session Law 2026-41 repeals the sales and use tax exemptions for electricity used at certified datacenters, effective 7 July 2026. The repeal applies to billing periods starting on or after 6 August 2026.
Session Law 2026-42 requires purchasers of such electricity to report the tax paid quarterly. The first return or report is due on 30 October 2026.
What it means
There are two dates to keep apart: the repeal took effect on 7 July 2026, but tax attaches to billing periods starting on or after 6 August 2026. Datacenter operators should check which bills fall on which side.
The quarterly reporting requirement is a separate obligation on purchasers, with the first filing due 30 October 2026, which is close enough to need action now.
Proof
The first return or report will be due on October 30, 2026.
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