South Carolina legislature recently passed bill HB 5122 introducing an exemption for certain supplies purchased by internet access service providers and communications service providers. All supplies, technical equipment, machinery, and electricity sold to internet access service providers and communications service providers, for use in producing, broadcasting, or distributing internet access service, communications services, or any combination thereof are now exempt from sales tax in South Carolina. Internet access service providers and communications service providers are deemed to be manufacturers for such purposes.
This act took effect on June 5, 2026 and applies to tax years beginning after 2025. Find more information here.
