The bill H. 5122 aims to amend the South Carolina Code of Laws by adding Article 31 to Chapter 9, Title 58, which will provide sales tax exemptions for certain items sold to or used by internet access service providers and communications service providers. Specifically, it states that all supplies, technical equipment, machinery, and electricity utilized in the production, broadcasting, or distribution of internet access and communications services will be exempt from sales tax. This legislation classifies these service providers as manufacturers for the purposes of this exemption.

Additionally, the bill outlines a process for internet access and communications service providers to apply for refunds on state and local sales and use taxes paid on exempt items. Providers must submit their refund applications to the Department of Revenue by January 31 for the previous calendar year, and the department is required to calculate the total refund claims by May 1. If the total claims exceed ten million dollars, refunds will be issued on a pro-rata basis to ensure the total does not exceed that amount, with payments made by June 1. The act will take effect upon the Governor's approval and will apply to tax years starting after 2025.