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GeorgiaHB 4162025-2026 Regular SessionHouse

Local government; enterprise zones; revise class of retailer from which fees may be collected

Sponsored By: Shaw Blackmon (Republican), Chuck Efstration (Republican), Trey Kelley (Republican)

Signed by Governor

Governmental AffairsRegulated Industries and UtilitiesGeneral Bill

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

Longer enterprise zones for redevelopment businesses

Special redevelopment zones last 30 years, starting on the first day of the calendar year after designation. That period ends earlier upon the first issuance of zone infrastructure revenue bonds with principal exceeding $100,000. Other enterprise zones keep their 10-year term, also starting on the first day of the year after designation. Qualifying businesses keep their property tax incentives for the full 10-year incentive period, even if the zone designation ends.

Annual infrastructure fees for tax-exempt businesses

Local governments can charge annual infrastructure fees in enterprise zones created by local resolution or ordinance. The fees apply to qualifying businesses or service enterprises making sales covered by the redevelopment project’s sales tax exemption. Each enterprise’s fee cannot exceed the total sales and use tax exempted on its transactions. Local governments can pledge fee revenue to back bonds for development or infrastructure within the zone.

Tax breaks with limits for redevelopment

Georgia’s special enterprise zones must be within an urban redevelopment area and contain a redevelopment project investing at least $400 million. The Commissioner must certify that the project’s location has been chronically underdeveloped for at least 20 years. The qualifying project gets an exemption from sales and use taxes within its boundaries; casino-related projects are excluded. Price differences caused by retailer leases with the project owner are permitted under the state’s trade-practice rules. Local governments can also agree with qualifying businesses or service enterprises to change or end tax exemptions and abatements.

Sponsors & Cosponsors

Sponsors

  • Shaw Blackmon

    Republican • House

  • Chuck Efstration

    Republican • House

  • Trey Kelley

    Republican • House

Cosponsors

  • Bill Cowsert

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 219 • No: 8

Senate vote • 3/31/2025

PASSAGE

Yes: 47 • No: 8

House vote • 3/3/2025

PASSAGE

Yes: 172 • No: 0 • Other: 6

Actions Timeline

  1. Effective Date

    7/1/2025

  2. House Date Signed by Governor

    5/14/2025House

  3. Act 266

    5/14/2025

  4. House Sent to Governor

    4/7/2025House

  5. Senate Tabled

    3/31/2025Senate

  6. Senate Taken from Table

    3/31/2025Senate

  7. Senate Third Read

    3/31/2025Senate

  8. Senate Passed/Adopted

    3/31/2025Senate

  9. Senate Read Second Time

    3/18/2025Senate

  10. Senate Committee Favorably Reported

    3/13/2025Senate

  11. Senate Read and Referred

    3/4/2025Senate

  12. House Third Readers

    3/3/2025House

  13. House Passed/Adopted By Substitute

    3/3/2025House

  14. House Committee Favorably Reported By Substitute

    2/26/2025House

  15. House Second Readers

    2/18/2025House

  16. House First Readers

    2/13/2025House

  17. House Hopper

    2/12/2025House

Bill Text

  • HB 416/AP* (v6)

    PDF

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