Legislature approves HB1261, expanding Georgia freeport tax exemption to electric utility inventory

A bill authored by State Rep. David Huddleston to broaden Georgia’s freeport ad valorem tax exemption, adding certain electric utility inventory, has been approved by both the House and Senate, according to the Georgia State House.

The measure passed both legislative chambers as of Friday, March 20, with House approval at 100-66 and a unanimous Senate vote of 45-0.

Filed as HB1261 on Monday, Feb. 9 during the 2026 regular session of the 158th General Assembly, the legislation is officially titled: ’Revenue and taxation; level 1 freeport exemptions for certain goods in inventory for electric utilities; provide’.

The summary below, based on the actual bill text, provides clarification of the measure’s main points.

This legislation broadens Georgia’s level 1 freeport ad valorem tax exemption to include specific inventory types held by electric utilities. It specifically adds finished goods and parts intended for use in in-state electric generation, distribution, or transmission projects, making them eligible under the freeport exemption application. The bill also authorizes counties and municipalities, subject to voter approval, to exempt designated electric utility equipment and supplies maintained for typical in-state operations in inventory, while specifying that equipment already installed remains subject to taxation.

In the House, the bill drew support from 11 Democrats and 89 Republicans, with 64 Democrats and 2 Republicans voting against.

For the Senate, 19 Democrats and 26 Republicans supported the measure, without any dissenting votes.

Co-sponsors include Rep. Chas Cannon (Republican-172nd), Rep. Robert Dickey (Republican-134th), Rep. Spencer Frye (Democrat-122nd), and three other legislators.

Huddleston, a Republican, began representing Georgia’s 72nd House District in 2023, succeeding former state representative Randy Nix.

Gov. Brian Kemp signed the bill into law on Monday, May 11.

In Georgia, the legislative process typically starts when a legislator, sometimes prompted by a constituent, collaborates with the Office of Legislative Counsel to draft a bill. After the bill is filed with the Clerk of the House or Secretary of the Senate, it gets a first reading and is assigned to a committee, where the proposal is debated and reviewed. If recommended, the bill goes to the floor for a third reading, discussion, and vote. Enactment requires passage in both chambers, which may involve a conference committee if different versions need reconciliation, before it is sent to the governor. The governor has six days during session—or 40 days post-adjournment (Sine Die)—to sign, veto, or allow the bill to become law without signature. The Georgia General Assembly holds a 40-day session each year, starting the second Monday of January.

Details in this article were sourced from the Georgia State House. Find the original data here.