House Bill 186

Chair's Name: Larry O'Neal

Committee: Ways & Means

House Sponsor: Jim Cole 

HB 186 provides for a two year exemption (2007-2009) from state sales tax on the sale of tangible personal property to, or used for the construction a new alternative fuel facility. The facility must be primarily dedicated to the production and processing of alternative fuels such as ethanol, biodiesel, butanol or their by-products.

The committee substitute received a Do Pass recommendation from the Ways & Means Committee and comes to the House Floor as a Rules Committee substitute under the Structured Rule. 

Chairman O'Neal's opinion of this legislation:

WHAT PROBLEM/OPPORTUNITY DOES THIS LEGISLATION ADDRESS?

HB 186 creates a sales tax exemption for sales of tangible property to, or used in or for the new construction of, a new alternative fuel facility in Georgia which is dedicated to the production and processing of ethanol, biodiesel, and butanol, when such fuels are derived from biomass materials. 

WHAT IS THE DRIVING FORCE BEHIND THIS LEGISLATION?

Encourages use of these alternative fuels.

THIS LEGISLATION:

• Reduces the Tax Burden on our Citizens:

This bill reduces the tax burden on companies that wish to construct these alternative fuel facilities.

• Other:

This bill will aid in the construction of new facilities in Georgia that will provide jobs to our citizens.

Senate Changes:

The Senate added an amendment which changed the bill to include all existing facilities and an amendment changed the effective date. Because the bill has an undetermined fiscal impact and the bill was a structured bill, Representative Cole will likely move to disagree.