Bill > HB1261

This bill expands the "level 1 freeport exemption," which is a tax exemption for certain types of inventory, to include specific goods held by electric utilities. Currently, this exemption applies to goods in the process of manufacturing, finished goods manufactured in Georgia, goods stored for shipment out of state, and stock in trade for fulfillment centers. The bill adds a new category to this exemption for inventory of finished goods and parts that an electric utility taxpayer holds for use in constructing, improving, repairing, or maintaining electric generation, distribution, or transmission infrastructure within the state. This means that certain equipment and supplies owned by electric utilities, such as motors, turbines, transformers, and poles, will now be eligible for this tax break when they are held in inventory for use in the state's electrical grid, provided they have not yet been incorporated into operational facilities.