House · Passed · 2025-2026 Regular Session
HB 1129: Local government; designation of enterprise zones; provisions
Last action July 1, 2026 · Effective Date
House Bill 1129 changes how Georgia's largest enterprise zones work, ending automatic state sales tax breaks for big redevelopment projects and capping how many such zones a single county can have.
The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.
In plain language
Georgia law lets local governments create 'enterprise zones' that offer tax breaks to encourage big redevelopment projects, especially in areas that have been rundown for decades. This bill focuses on a specific type of enterprise zone tied to redevelopment projects worth at least $400 million in areas certified as chronically underdeveloped for 20 years or more. Under current law, projects that qualify for one of these zones automatically get exempted from both local and state sales and use taxes. The bill changes that so the automatic exemption only covers local sales tax; the state sales tax exemption would now require sign-off from the Governor or the Governor's designee. It also lets local governments charge annual infrastructure fees to businesses benefiting from the tax break, limits how those fees and any bonds backed by them can be used, and caps the number of these zones in urban redevelopment areas to four per county. The changes take effect July 1, 2026, and apply to zones designated on or after that date, with the Department of Community Affairs' commissioner now formally approving new zone designations.
What the bill does
- Removes the automatic exemption from state sales and use tax for qualifying enterprise zone redevelopment projects, requiring Governor approval instead.
- Keeps the exemption from local sales and use tax automatic for qualifying projects within these enterprise zones.
- Gives the commissioner of the Department of Community Affairs formal authority to designate nominated areas as enterprise zones rather than treating qualification as automatic.
- Allows local governments to charge annual infrastructure fees to qualifying businesses, capped at the amount of sales tax exempted, which can back revenue bonds for zone infrastructure.
- Bars the use of revenue bond principal to pay back or return the capital investment required to qualify for the zone.
- Limits the number of these large redevelopment enterprise zones to four per county, regardless of which local government created them.
Who it affects
Local governments and urban redevelopment authorities that create enterprise zones, developers behind large redevelopment projects worth $400 million or more, retailers and businesses operating inside those zones, the Governor's office, and the Department of Community Affairs, which now formally approves zone designations.
Why it matters
Big redevelopment projects in these zones would no longer automatically skip state sales tax, meaning the state keeps more revenue unless the Governor approves an exemption. Local governments also face a new four-zone-per-county limit, which could restrict future large-scale redevelopment tax incentives in already-active counties.
Key provisions
- Section 1 revises O.C.G.A. § 36-88-6(g)(2) so the commissioner must designate a nominated area, rather than automatic qualification, before enterprise zone status applies.
- Section 1 adds § 36-88-6(g)(2)(B), removing automatic state sales and use tax exemption for zone projects unless the Governor or designee approves it.
- Section 1 adds § 36-88-6(g)(4), letting local governing bodies collect annual infrastructure fees from qualifying retailers after the commissioner designates the zone, capped at the amount of tax exempted.
- Section 1 adds § 36-88-6(g)(4)(B), prohibiting use of revenue bond principal to repay or return the capital investment required to qualify for the zone.
- Section 1 adds § 36-88-6(g)(5), capping these enterprise zones at four per county regardless of which local government nominated them.
- Section 1 retains the existing exclusion barring casino gambling projects from qualifying under this subsection.
- Section 2 sets the effective date as July 1, 2026, applying only to zones designated on or after that date.
From the bill
“Any redevelopment project used to qualify an area for designation as an enterprise zone under this subsection shall not, upon approval of such designation, qualify for an exemption of any state sales and use tax levied by this state within the boundaries of such project unless such exemption is approved by the Governor or his or her designee.”
“No enterprise zone shall be designated under this subsection in a county in which four enterprise zones under this subsection are wholly or partially located, regardless of which local governing body or bodies nominated such existing enterprise zones under this subsection.”
“The principal of the revenue bonds provided for under subparagraph (A) of this paragraph shall not be used, directly or indirectly, to satisfy any obligation on or otherwise provide a return of the capital investment contemplated by subparagraph (B) of paragraph (1) of this subsection.”
Discussed in meetings (17)
The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.
House Governmental Affairs Committee, February 18, 2026
From 0:23:22 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented HB 1129 as safeguards to ensure enterprise-zone incentives support redevelopment of distressed property. The sponsor said it would clarify the Department of Community Affairs commissioner’s designation authority, require executive-branch approval for state sales-tax exemptions, limit the covered zones to four per urban redevelopment area, and prohibit using the principal of pledged revenue bonds to return investors’ capital contributions. A committee member questioned whether the cap would restrict struggling cities’ redevelopment choices. A Governor’s Office representative said the cap was a compromise, applied separately to each urban redevelopment area, and would not prevent a city from having multiple such areas. The representative said Centennial Yards in Atlanta was the only existing zone of this kind and would not be affected. Asked about consultation, the representative said the department had spoken with Centennial Yards and that it had raised no concerns about this legislation because its existing exemption would continue for 30 years. The committee approved the bill by voice vote with no opposition heard.
House Rules Committee, February 23, 2026
From 0:35:53 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said HB 1129 would clarify enterprise-zone designations, limit automatic state tax exemptions and allow reasonable local infrastructure fees. A committee member questioned the four-zone cap and the requirement for the governor to approve state exemptions, raising concerns about certainty for businesses. The sponsor said the program was intended for projects exceeding $400 million and major infrastructure improvements, rather than smaller projects, and described approval as a safeguard for state revenue. A second member said the zones were originally intended for long-undeveloped sites and asked whether applying the designation to already-built sites could create unforeseen revenue losses. The sponsor agreed and said the proposed limits would provide an additional check.
House floor session, March 4, 2026 (legislative day 27, PM, part 2)
From 1:04:09 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1933
Summary by Georgia Commons: The sponsor said HB 1129 would update enterprise-zone eligibility rules and strengthen oversight while keeping incentives focused on distressed areas, major investment and job creation. The sponsor presented it as a way to protect taxpayers while supporting redevelopment. There were no questions. The House passed the bill 160–1.
House Rules Committee, March 4, 2026
From 0:25:14 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 1929
Summary by Georgia Commons: The committee placed HB 1129 on the supplemental calendar after a motion and second, with no objection. Members did not discuss its substance.
Senate Finance Committee, March 18, 2026
From 0:24:07 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the measure would clarify enterprise-zone approvals, require executive-branch approval for state sales-tax exemptions, limit zones to four per urban redevelopment area, and prohibit using bond principal to return investors' capital. Presenters explained that waived sales taxes are replaced by an equal infrastructure fee used to repay bonds. They said eligibility requires at least $400 million in investment and 20 years of chronic underdevelopment. Members questioned whether the four-zone limit applied statewide. The governor's policy representative clarified that it applied per redevelopment area, said three zones currently existed in Atlanta, and identified possible opportunities in Columbus and Augusta. The representative said Savannah did not meet the combined requirements. A member proposed a July 1, 2031 expiration date. The governor's representative opposed expiration because approvals can take time. The committee authorized legal counsel to draft protections for projects already approved or in the approval process. Members also clarified that state sales-tax exemptions remained available with additional approval. The expiration amendment passed 5-3, and the amended bill passed 7-1.
Senate Rules Committee, March 20, 2026
From 0:53:33 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The chair moved to send the bill back to the Rules Standing Committee, saying the referral had been requested from above without identifying the requester or explaining the reason. The committee approved the motion unanimously. No provisions were discussed.
Senate Rules Committee, March 23, 2026
From 0:43:49 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: A Governor's Office policy representative said the substitute for HB 1129 would remove a five-year expiration provision added in Senate Finance. The representative said it had been placed in the wrong code section and that enterprise zones take longer than five years to develop. Asked about safeguards, the representative said they were already in the original bill. The representative cited the Gulch project, certified in 2018 but receiving its revenue bond in 2024, as an example of the timeline. Asked what expiration period would be reasonable, the representative preferred none but suggested at least 10 years if required, noting that bonds last 30 years. The Finance chair offered a different interpretation: projects needed to be in process within five years, but their bonds could continue for 30 years. The committee approved the substitute, 9-5.
Senate floor session, March 23, 2026 (legislative day 36)
From 0:31:25 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Recommitted)
Summary by Georgia Commons: The clerk announced that the Rules Committee had referred HB 1129 from the general calendar to the Rules Committee. No substantive discussion followed.
Senate Rules Committee, March 30, 2026
From 0:49:53 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor presented HB 1129 as a governor-backed measure updating Georgia's enterprise zones and redevelopment tools. No substantive questions followed. A member selected it, and the committee unanimously approved the calendar containing it.
Senate floor session, March 31, 2026 (legislative day 39, part 1)
From 1:31:07 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)
Summary by Georgia Commons: The Senate first voted 33-15 to prevent floor amendments to a group including HB 1129. Later, the sponsor said the substitute would target enterprise zone incentives to urban redevelopment areas certified as underdeveloped for at least 20 years and projects with at least $400 million in private investment. The sponsor said local sales tax exemptions could continue, but state exemptions would require the governor's approval. The sponsor also described infrastructure fees capped at the exemption's value, revenue bonds for public improvements and a prohibition on using public money to guarantee or repay private investment. The sponsor argued these changes would limit state tax losses and improve accountability. No substantive questions were answered. The Senate adopted the substitute and passed the bill 45-2.
House floor session, April 2, 2026 (legislative day 40, PM, part 2)
From 3:12:51 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub)
Summary by Georgia Commons: The sponsor said HB 1129 would update enterprise-zone rules and strengthen accountability and transparency. The sponsor explained that the Senate clarified that a four-zone limit applied to the county where zones are located, regardless of which local government nominated them. Asked whether the commissioner's authority to designate nominated areas was new, the sponsor said it already existed in law. The House agreed to the Senate's replacement version, 170 to 1.
- Read aloud: House floor session, February 3, 2026 (legislative day 11), 0:22:58
- Read aloud: House floor session, February 4, 2026 (legislative day 12), 0:27:36
- Read aloud: House floor session, February 19, 2026 (legislative day 21), 1:05:21
- Read aloud: Senate floor session, March 6, 2026 (legislative day 28, part 1), 0:39:13
- Read aloud: Senate floor session, March 20, 2026 (legislative day 35), 0:38:49
- Read aloud: Senate floor session, March 25, 2026 (legislative day 37), 0:36:10
Status timeline
- Effective Date
- Act 459
- House Date Signed by Governor (House)
- House Sent to Governor (House)
- House Agreed Senate Amend or Sub (House)
- Senate Passed/Adopted By Substitute (Senate)
- Senate Third Read (Senate)
- Senate Engrossed (Senate)
Show full history (19 actions)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Recommitted (Senate)
- Senate Read Second Time (Senate)
- Senate Committee Favorably Reported By Substitute (Senate)
- Senate Read and Referred (Senate)
- House Passed/Adopted (House)
- House Third Readers (House)
- House Committee Favorably Reported (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- Devan Seabaugh (R, HD-34)
- Matthew Gambill (R, HD-15)
- Will Wade (R, HD-9)
- Chuck Efstration (R, HD-104)
- Soo Hong (R, HD-103)
- Shaw Blackmon (R, HD-146)
- Bo Hatchett (R, SD-50)
Votes
- House voteMarch 4, 2026
160 yea, 1 nay (4 not voting, 12 excused)
- Senate voteMarch 31, 2026
33 yea, 15 nay (2 not voting, 4 excused)
- Senate voteMarch 31, 2026
45 yea, 2 nay (2 not voting, 5 excused)
- House voteApril 2, 2026
170 yea, 1 nay (3 not voting, 2 excused)
Topics
- enterprise zones
- local sales tax
- economic development
- redevelopment projects
- state tax exemptions