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HB 416

Local government; enterprise zones; revise class of retailer from which fees may be collected

2025-2026 Regular Session Introduced by Shaw Blackmon and 2 co-sponsors

HB 416 boosts Georgia's economic growth by extending enterprise zone designations to 30 years, requiring $400M investments, and offering tax exemptions for redevelopment projects.

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Bill Summary · HB 416

Summary of House Bill 416 (HB 416)

Purpose and Intent

House Bill 416 (HB 416) aims to amend the existing regulations surrounding enterprise zones in Georgia. The bill seeks to revise the criteria for designating enterprise zones, particularly focusing on the class of retailers from which fees may be collected. Additionally, it extends the duration of enterprise zone designations, thereby enhancing the potential for economic development in underdeveloped areas.

Key Provisions

The bill includes several significant changes to the Official Code of Georgia Annotated, specifically Chapter 88 of Title 36:

  1. Criteria for Enterprise Zones:

    • Urban Redevelopment Requirement: Areas nominated for enterprise zone designation must be included in an urban redevelopment area and have a redevelopment project with a minimum capital investment of $400 million.
    • Chronically Underdeveloped Areas: The area must have been chronically underdeveloped for 20 years or more.

  2. Sales and Use Tax Exemptions:

    • Redevelopment projects qualifying for enterprise zone designation will be exempt from any sales and use tax levied within the project boundaries.

  3. Infrastructure Fees:

    • Local governing bodies can assess and collect annual enterprise zone infrastructure fees from qualifying retailers. These fees cannot exceed the total amount of sales and use tax exempted under the bill, and they may be used as security for revenue bonds issued for development within the enterprise zone.

  4. Duration of Enterprise Zones:

    • Standard enterprise zones will exist for 10 years from the first day of the calendar year following their designation.
    • Zones designated under the new criteria will last for 30 years or until the completion of the redevelopment project, whichever comes first.

  5. Exclusions:

    • The provisions do not apply to projects related to casino gambling.

Affected Parties

  • Local Governments: Municipal and county governments will have the authority to designate enterprise zones and collect fees.
  • Retailers: Retailers operating within designated enterprise zones may benefit from tax exemptions but will also be subject to the new infrastructure fees.
  • Developers: Entities involved in redevelopment projects will have clearer pathways to qualify for enterprise zone benefits, potentially leading to increased investment in underdeveloped areas.

Procedural Timeline

  • Introduced: February 12, 2025
  • House Passed: March 3, 2025
  • Senate Passed: March 31, 2025
  • Signed by Governor: May 14, 2025
  • Effective Date: July 1, 2025

Conclusion

HB 416 represents a strategic effort to stimulate economic growth in Georgia by revising the framework for enterprise zones. By expanding the criteria for designation and extending the duration of these zones, the bill aims to attract significant investment in areas that have historically struggled with development.

Compiled from official sources — confirm details with the bill’s official record.

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