---
title: HB 1176. Sales and use tax; sale of any tangible personal property used or consumed in connection with the generation, transmission, distribution, sale, or furnishing of electricity; exempt
collection: bills
id: 2025-2026/hb1176
cite_as: HB 1176, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1176
md_url: https://georgiacommons.org/bills/2025-2026/hb1176.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1176/text
source_url: https://www.legis.ga.gov/legislation/72787
date: 2026-02-05
status: introduced
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: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1176.md?full=1
bill_number: HB 1176
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-02-03
last_action: House Second Readers
sponsors:
- Charles Cannon
- David Huddleston
- Trey Rhodes
- Robert Dickey
- Ron Stephens
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1176/2025
upstream_id: 2106784
summaries_model: claude-sonnet-5
topic_tags:
- sales tax exemptions
- electric utilities
- public utility regulation
- local tax revenue
- energy policy
---
# HB 1176. Sales and use tax; sale of any tangible personal property used or consumed in connection with the generation, transmission, distribution, sale, or furnishing of electricity; exempt
## Text
House Bill 1176
By: Representatives Cannon of the 172nd, Huddleston of the 72nd, Rhodes of the 124th, Dickey
of the 134th, and Stephens of the 164th
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
taxation, so as to exempt from sales and use taxes the sale of any tangible personal property
used or consumed in connection with the generation, transmission, distribution, sale, or
furnishing of electricity; to provide for a start date for such exemption; to provide a
definition; to provide for exceptions; to provide for related matters; to repeal conflicting
laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is
amended in Code Section 48-8-3, relating to exemptions from sales and use taxes, by
deleting "or" at the end of paragraph (104), by replacing the period with "; or" at the end of
paragraph (105), and by adding a new paragraph to read as follows:
"(106)(A) Beginning on January 1, 2027, sales to any public utility for tangible
personal property that is used or consumed in connection with or to facilitate the
generation, transmission, distribution, sale, or furnishing of electricity within this state.
(B)(i) As used in this paragraph, the term 'local sales and use tax' means any sales
tax, use tax, or local sales and use tax which is levied and imposed in an area
consisting of less than the entire state, however authorized, including, but not limited
to, such taxes authorized by or pursuant to constitutional amendment; by or pursuant
to Section 25 of an Act approved March 10, 1965 (Ga. L. 1965, p. 2243), as amended,
the 'Metropolitan Atlanta Rapid Transit Authority Act of 1965'; or such taxes as
authorized by or pursuant to Article 2, 2A, 3, 4, or 5 of this chapter.
(ii) The exemption provided for in this paragraph shall also apply to local sales and
use taxes."
SECTION 2.
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 1176 would exempt public utilities from paying state and local sales and use taxes on equipment and materials used to generate, transmit, distribute, or sell electricity in Georgia, starting January 1, 2027.
### Plain-language summary
Currently, public utilities in Georgia generally pay sales and use taxes when they buy tangible personal property (physical goods, as opposed to services) used in producing and delivering electricity. This bill changes that by adding a new exemption to Georgia's sales and use tax law (O.C.G.A. § 48-8-3).
Starting January 1, 2027, sales to any public utility of tangible personal property used or consumed in connection with generating, transmitting, distributing, selling, or furnishing electricity within Georgia would be exempt from both state and local sales and use taxes. The bill defines "local sales and use tax" broadly to include taxes authorized under various state laws and constitutional provisions, including the tax that funds the Metropolitan Atlanta Rapid Transit Authority (MARTA). The bill repeals any conflicting laws but makes no other changes.
### What it does
- Adds a new exemption to Georgia's sales and use tax law (O.C.G.A. § 48-8-3) for tangible personal property bought by public utilities for electricity generation, transmission, distribution, sale, or furnishing.
- Sets the exemption's start date as January 1, 2027, meaning it would not apply to purchases made before that date.
- Defines "local sales and use tax" broadly to include county, MARTA, and other local sales taxes authorized under multiple sections of Georgia law.
- Extends the new state sales tax exemption to also cover those local sales and use taxes, not just the state-level tax.
- Repeals any existing laws that conflict with the new exemption.
### Who it affects
Public utilities that generate, transmit, distribute, sell, or furnish electricity in Georgia, such as electric power companies, would benefit directly from the tax exemption. County and local governments that rely on local sales tax revenue, including MARTA, could see changes in tax collections tied to utility purchases.
### Why it matters
If enacted, electric utilities would no longer pay state or local sales tax on equipment and materials used to produce and deliver electricity, potentially lowering their operating costs. Local governments and MARTA could see reduced sales tax revenue from utility purchases that are currently taxable.
### Key provisions
- Section 1 amends O.C.G.A. § 48-8-3 by adding paragraph (106), creating the new sales and use tax exemption for public utilities' electricity-related purchases.
- The exemption applies to tangible personal property used or consumed in connection with or to facilitate generating, transmitting, distributing, selling, or furnishing electricity within Georgia.
- The exemption takes effect January 1, 2027, rather than immediately upon passage.
- The bill defines 'local sales and use tax' to include taxes authorized by constitutional amendment, the 1965 MARTA Act, and Articles 2, 2A, 3, 4, or 5 of the sales tax chapter.
- The exemption explicitly extends to these local sales and use taxes, not just the statewide sales tax.
- Section 2 repeals any conflicting laws, a standard technical provision.
## Status
- Status: Introduced (2026-02-03)
- Last action: House Second Readers (2026-02-05)
- Sponsors: Charles Cannon, David Huddleston, Trey Rhodes, Robert Dickey, Ron Stephens
- Official page: https://www.legis.ga.gov/legislation/72787
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb1176.md?full=1