Big news for anyone with manufacturing clients in Georgia. The legislature just passed HB 412 expanding the sales tax exemption on energy used in manufacturing. Previously only covered electricity used directly in production - now it includes HVAC for production areas and compressed air systems. Retroactive to January 2025. I have 8 clients who qualify and we're filing amended returns this month.
Georgia finally passed the manufacturing sales tax exemption expansion
This is huge Laura. Do you know if it covers food processing? I have a client with a large freezer operation in Savannah and their electricity sales tax is about $2,100/month. If the HVAC for the freezer area qualifies that could be a significant refund.
Yes, food processing qualifies as manufacturing under the Georgia code. Your freezer HVAC should absolutely be covered. Get your client's utility account numbers and production area square footage together and file the exemption certificate with the utility. The refund for 2025 alone could be over $25K for your client.