On February 27, 2025, the Georgia House of Representatives introduced House Bill 652, a legislative proposal aimed at modifying tax exemptions related to certain motor fuels. The bill seeks to clarify and streamline the process for obtaining exemptions for nonhighway use of fuels, particularly those used in specific contexts such as electricity generation on federal interstate rights of way.

The primary provisions of House Bill 652 include the establishment of exemption certificates that would allow purchasers of nonhighway fuels to avoid certain taxes, provided they meet specific criteria. These criteria include the requirement that the fuel is not used on highways and that the purchaser is not a reseller. The exemption certificates would be valid for a period of three years and must be maintained by fuel distributors as part of their records. Additionally, it places the onus on purchasers to inform distributors when they no longer qualify for the exemption.

The introduction of this bill has sparked discussions among lawmakers and stakeholders regarding its implications for the energy sector and tax revenue. Proponents argue that the bill could encourage the use of alternative energy sources by reducing the financial burden on entities that utilize nonhighway fuels for electricity generation. This could potentially lead to increased investment in renewable energy projects within the state.

However, the bill has also faced scrutiny from some legislators who express concerns about the potential loss of tax revenue and the implications for road maintenance funding. Critics argue that while promoting alternative energy is important, it should not come at the expense of essential infrastructure funding.

House Bill 652 is set to take effect on January 1, 2026, if passed. As discussions continue, the bill's future remains uncertain, with ongoing debates likely to shape its final form. The outcome of this legislation could have significant economic and environmental implications for Georgia, particularly in the context of the state's energy policies and infrastructure funding strategies. As the legislative session progresses, stakeholders will be closely monitoring developments related to this bill and its potential impact on the state's energy landscape.