---
title: HB 1132. Sales and use tax; exempt materials used in construction, renovation, and rehabilitation of affordable housing by purely public charities
collection: bills
id: 2025-2026/hb1132
cite_as: HB 1132, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1132
md_url: https://georgiacommons.org/bills/2025-2026/hb1132.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1132/text
source_url: https://www.legis.ga.gov/legislation/72686
date: 2026-03-31
status: engrossed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 1099
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1132.md?full=1
bill_number: HB 1132
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-03-06
last_action: Senate Tabled
sponsors:
- Lehman Franklin
- Ron Stephens
- Stacey Evans
- Todd Jones
- Clint Crowe
- Spencer Frye
- Jason T. Dickerson
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1132/2025
upstream_id: 2104364
summaries_model: claude-sonnet-5
topic_tags:
- affordable housing
- sales tax exemption
- nonprofit charities
- first-time homebuyers
- property tax and housing finance
---
# HB 1132. Sales and use tax; exempt materials used in construction, renovation, and rehabilitation of affordable housing by purely public charities
## Text
House Bill 1132 (COMMITTEE SUBSTITUTE)
By: Representatives Franklin of the 160th, Stephens of the 164th, Evans of the 57th, Jones of
the 25th, Crowe of the 118th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia
Annotated, relating to general provisions relative to state sales and use tax, so as to exempt
from state sales and use taxation materials used in construction, renovation, and rehabilitation
of affordable housing by purely public charities; to provide for requirements; to provide for
automatic repeal; to provide for related matters; to provide for an effective date; to repeal
conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Part 1 of Article 1 of Chapter 8 of Title 48 of the Official Code of Georgia Annotated,
relating to general provisions relative to state sales and use tax, is amended by revising
paragraph (103) of Code Section 48-8-3, relating to exemptions, as follows:
"(103)(A) Notwithstanding any provision of Code Section 48-8-63 to the contrary,
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;
provided, however, that the exemption shall only apply to such personal property that
will remain on the real property permanently, and only if:
(i) Such charity is exempt from taxation under Section 501(c)(3) of the federal
Internal Revenue Code;
(ii) Such real property is held exclusively for the purpose of constructing, renovating,
and rehabilitating single-family homes to be financed by such charity to individuals
purchasing their first home using loans that shall not bear interest;
(iii) Such individuals at the time of purchase shall have an income equal to or less
than 80 percent of the median income based on the maximum household income
limits for the county where the real property is located as established annually by the
United States Department of Housing and Urban Development; and
(iv) Such individuals shall reside in such homes as a primary residence and such
residence shall be subject to a covenant for at least 30 years that restricts the resale of
the home to a buyer who at the time of purchase has an income equal to or less than
80 percent of the median income based on the maximum household income limits for
the county where the real property is located as established annually by the United
States Department of Housing and Urban Development.
(B) This paragraph shall stand repealed and reserved on December 31, 2031 Reserved;"
SECTION 2.
This Act shall become effective on January 1, 2027.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
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.
### Plain-language summary
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 it 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.
## Status
- Status: Engrossed (2026-03-06)
- Last action: Senate Tabled (2026-03-31)
- Sponsors: Lehman Franklin, Ron Stephens, Stacey Evans, Todd Jones, Clint Crowe, Spencer Frye, Jason T. Dickerson
- Official page: https://www.legis.ga.gov/legislation/72686
> The history, votes, and amendments (1,099 characters) are at https://georgiacommons.org/bills/2025-2026/hb1132.md?full=1