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House · Engrossed · 2025-2026 Regular Session

HB 1132: Sales and use tax; exempt materials used in construction, renovation, and rehabilitation of affordable housing by purely public charities

Last action March 31, 2026 · Senate Tabled

House Bill 1132 would exempt certain building materials from Georgia's state sales and use tax when purely public charities use them to build or fix up affordable single-family homes for low-income first-time buyers.

Read the full bill text

These buttons carry the bill's own text, not the summaries below. Copy for LLM, View as markdown, and Send to AI use the Markdown version: the text as filed, then the summaries under a heading that names them as ours. View raw is the text alone.

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 Comm Sub version, the latest the General Assembly's website lists.

In plain language

Currently, paragraph (103) of Georgia's sales and use tax law (O.C.G.A. § 48-8-3) is reserved and does not provide this exemption. This bill fills it in, exempting from state sales and use tax the materials a purely public charity buys and permanently installs while constructing, renovating, or rehabilitating affordable housing. To qualify, the charity must be a federally recognized 501(c)(3) nonprofit, the property must be used only to build homes financed through interest free loans to first time buyers, and those buyers must earn no more than 80 percent of the area median income as set annually by the U.S. Department of Housing and Urban Development. Homes sold under this program must be the buyer's primary residence and carry a 30 year resale covenant limiting future buyers to the same income cap. The exemption is set to automatically repeal on December 31, 2031, and the law would take effect January 1, 2027.

What the bill does

  • Creates a new state sales and use tax exemption for materials bought by a purely public charity for building, renovating, or rehabilitating affordable housing, but only for items that stay permanently on the property.
  • Limits the exemption to 501(c)(3) charities financing single-family homes sold to first time buyers through interest free loans.
  • Requires buyers to have income at or below 80 percent of the area median income, based on HUD's county-level limits, at the time of purchase.
  • Requires homes to be the buyer's primary residence and imposes a 30 year resale covenant capping future buyers' income at the same 80 percent threshold.
  • Automatically repeals the exemption on December 31, 2031 unless the General Assembly acts again.
  • Sets the law's effective date as January 1, 2027.

Who it affects

Purely public charities that build or renovate affordable housing, low income first time homebuyers who purchase homes through these charities, construction material suppliers, and the Georgia Department of Revenue, which administers the sales tax exemption.

Why it matters

Charities building affordable housing would pay less for construction materials, potentially lowering the cost of building or renovating homes for low income first time buyers. Buyers would still face income limits and a 30 year resale restriction, and the tax break itself would expire at the end of 2031.

Key provisions

  • Section 1 rewrites paragraph (103) of O.C.G.A. § 48-8-3 to exempt materials a purely public charity permanently installs while building, renovating, or rehabilitating affordable housing from state sales and use tax.
  • The exemption requires the charity to hold 501(c)(3) status under the federal Internal Revenue Code.
  • The exemption applies only to homes financed with interest free loans to individuals buying their first home.
  • Buyers must have income at or below 80 percent of the county median income as set annually by HUD, both at purchase and under a 30 year resale covenant.
  • Section 1(B) automatically repeals the exemption on December 31, 2031.
  • Section 2 sets the effective date as January 1, 2027.

From the bill

“sales of tangible personal property to a purely public charity used by such charity for the construction, renovation, or rehabilitation of affordable housing on real property”

This defines the core sales tax exemption the bill creates for charities building affordable housing.

“Such individuals at the time of purchase shall have an income equal to or less than 80 percent of the median income”

This sets the income limit buyers must meet to qualify for homes under the exemption.

“This paragraph shall stand repealed and reserved on December 31, 2031”

This automatically ends the tax exemption at the close of 2031 unless lawmakers renew it.

Discussed in meetings (12)

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.

  1. House Ways & Means Committee, March 5, 2026

    From 0:22:37 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor presented a substitute for HB 1132, saying it was narrowly designed for Habitat for Humanity and would exempt construction materials, but not tools or labor, from sales taxes for five years. The sponsor estimated savings of about $7,000 per home and an annual tax cost of roughly $1.2 million, based on 161 new homes and 16 renovations. Members questioned favoring one nonprofit and the potential cost of expanding similar exemptions. One member suggested a cap, and the sponsor expressed willingness, but no amendment was formally offered or adopted. A member with Habitat experience supported the proposal, saying affordable mortgages could save participating Athens families about $1,200 monthly and reporting improvements in school performance, savings and reduced public assistance among participating families. Asked about resale profits, the sponsor said resale restrictions would require another eligible buyer and prevent flipping. The sponsor also said the homeowners likely would qualify for homestead exemptions. The committee approved the bill by voice vote, with opposition audible but no count stated.

  2. House Rules Committee, March 6, 2026

    From 0:42:47 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179

    Summary by Georgia Commons: The sponsor said HB 1132 would exempt construction materials and supplies used by nonprofit housing organizations, such as Habitat for Humanity, from sales taxes. The sponsor estimated savings of about $7,000 per home, split equally between state and local taxes. Questions concerned where members could find the bill; no decision was recorded.

  3. House floor session, March 6, 2026 (legislative day 28, PM, part 2)

    From 4:13:16 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2283

    Summary by Georgia Commons: The sponsor said HB 1132 would exempt construction materials for qualifying affordable homes from state and local sales taxes, helping Habitat for Humanity build more housing. The sponsor estimated savings of roughly $6,000 to $7,000 per home, divided about equally between state and local taxes. The sponsor said the exemption covers materials permanently incorporated into a home, not labor or other supplies. Asked why the bill is limited to single-family homes and first-time buyers, the sponsor said it follows Habitat for Humanity's qualifications and expressed openness to future expansion through other legislation. The House adopted the committee substitute and passed the bill 163-3.

  4. House Rules Committee, March 6, 2026

    From 1:27:05 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179

    Summary by Georgia Commons: The committee placed HB 1132 on the supplemental floor calendar under structured rules. No substantive discussion occurred.

  5. Senate Finance Committee, March 25, 2026

    From 1:03:46 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said the bill would exempt construction materials for qualifying charitable affordable-housing projects from state and local sales taxes. The sponsor said a local Habitat for Humanity affiliate suggested the proposal to help build and rehabilitate housing. According to the sponsor, qualifying single-family homes must be primary residences for households earning no more than 80% of area median income, with resale restrictions lasting at least 30 years. The sponsor said the exemption would expire after five years. Citing 177 homes built or renovated by Habitat for Humanity in the previous year, the sponsor estimated savings of about $7,000 per home, including roughly $3,000 in local taxes and $3,800 in state taxes. Asked how the income threshold worked, another member explained that the dollar amount would vary by county, and the sponsor agreed. Asked about existing construction-material tax breaks, the sponsor said they understood Habitat paid the same taxes as other purchasers. The committee unanimously approved the substitute.

  6. Senate Rules Committee, March 30, 2026

    From 0:33:14 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor said HB 1132 would exempt construction materials used for Habitat for Humanity houses from state and local sales taxes. No substantive questions followed. The chair added it to the selections, and the committee unanimously approved the calendar containing it.

  7. Senate floor session, March 31, 2026 (legislative day 39, part 1)

    From 1:31:08 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Engrossed)

    Summary by Georgia Commons: The majority leader included HB 1132 in a request to prevent floor amendments to ten bills. The clerk described a state and local sales tax exemption for materials used by purely public charities to build, renovate or rehabilitate affordable housing. After an objection, the Senate approved the group motion 33-15. No substantive debate or final passage occurred.

Status timeline

  1. 2026-03-31Senate Tabled (Senate)
  2. 2026-03-31Senate Engrossed (Senate)
  3. 2026-03-27Senate Read Second Time (Senate)
  4. 2026-03-27Senate Committee Favorably Reported (Senate)
  5. 2026-03-09Senate Read and Referred (Senate)
  6. 2026-03-06House Passed/Adopted By Substitute (House)
  7. 2026-03-06House Third Readers (House)
  8. 2026-03-06House Committee Favorably Reported By Substitute (House)
Show full history (11 actions)
  1. 2026-02-04House Second Readers (House)
  2. 2026-02-03House First Readers (House)
  3. 2026-02-02House Hopper (House)

Sponsors

  • Lehman Franklin (R, HD-160)Primary sponsor
  • Ron Stephens (R, HD-164)
  • Stacey Evans (D, HD-57)
  • Todd Jones (R, HD-25)
  • Clint Crowe (R, HD-118)
  • Spencer Frye (D, HD-122)
  • Jason T. Dickerson (R, SD-21)

Votes

  1. PassedHouse voteMarch 6, 2026

    163 yea, 3 nay (2 not voting, 9 excused)

    PASSAGE: House Vote #682

  2. PassedSenate voteMarch 31, 2026

    33 yea, 15 nay (2 not voting, 4 excused)

    MOTION TO ENGROSS: HB 52, HB 248, HB 963, HB 964, HB 1001, HB 1077, HB 1116, HB 1129, HB 1132, HB 1209: Senate Vote #876

  3. PassedSenate voteMarch 31, 2026

    39 yea, 10 nay (2 not voting, 3 excused)

    MOTION TO TABLE REMAINING LEGISLATION ON THE RULES CALENDAR: Senate Vote #912

Topics

  • affordable housing
  • sales tax exemption
  • nonprofit charities
  • first-time homebuyers
  • property tax and housing finance

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HB1132: Sales and use tax; exempt materials used in construction, renovation, and rehabilitation of affordable housing by purely public charities | Georgia Commons