Georgia House bill by Rep. Huddleston expanding freeport tax exemption for electric utility inventory passes House and Senate

Passed bill authored by State Rep. David Huddleston aims to expand Georgia’s freeport ad valorem tax exemption to include specified electric utility inventory, following approval in both the House and Senate, according to the Georgia State House.

It passed both chambers as of Friday, March 20, clearing the House by a vote of 100-66 and the Senate by a vote of 45-0.

The bill, introduced as HB1261 on Monday, Feb. 9 during the 2026 regular session of the 158th General Assembly, was formally described as: ’Revenue and taxation; level 1 freeport exemptions for certain goods in inventory for electric utilities; provide’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill expands Georgia’s level 1 freeport ad valorem tax exemption to cover certain inventory held by electric utilities. It adds electric utility finished goods and parts destined for use in in-state electric generation, distribution or transmission projects to the list of inventories that may be reported on the freeport exemption application. It also allows counties and municipalities, with voter approval, to exempt specified electric utility equipment and supplies held in inventory for normal in-state business use, while clarifying that equipment already installed in operating facilities remains taxable.

In the House, 11 Democrats and 89 Republicans voted in favor of the bill, while 64 Democrats and two Republicans opposed it.

Meanwhile, in the Senate, 19 Democrats and 26 Republicans voted in favor, with no opposing votes.

The bill was co-sponsored by Rep. Chas Cannon (Republican-172nd), Rep. Robert Dickey (Republican-134th), and Rep. Spencer Frye (Democrat-122nd), along with three other co-sponsors.

Huddleston, a Republican, was elected to the Georgia State House in 2023 to represent the state’s 72nd House District, replacing previous state representative Randy Nix.

The bill was signed into law by Gov. Brian Kemp on Monday, May 11.

In Georgia, the legislative process begins when a lawmaker, often at a constituent’s request, works with the Office of Legislative Counsel to draft a bill. After filing with the Clerk of the House or Secretary of the Senate, the bill receives its first reading and is sent to a committee, where most of the debate and fact-finding takes place. If approved, it advances to the floor for a third reading, debate, and a vote. To become law, the bill must pass both chambers, sometimes through a conference committee if versions differ, before being sent to the governor. The governor then has six days during session—or 40 days after adjournment (Sine Die)—to sign, veto, or allow the bill to become law without a signature. The Georgia General Assembly meets annually for a 40-day session beginning the second Monday in January.

Information in this article was obtained from the Georgia State House. The source data can be found here.