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House Bill 1291 could give tax exemptions to non-profit organizations

The bill would be excused from the sale tax for buying building materials to build affordable homes.

MACON, Ga. — According to the Georgia Public Policy Foundation, the average cost to build a $2,000 square-foot home in Georgia is around $300,000. Non-profits like the Macon Area Habit for Humanity are building 3-bedroom homes for around $125,000. However, a new house bill could give tax exemptions to organizations like theirs to build affordable homes. 

The Macon Area Habitat for Humanity helps first-time home-buying, low-income families who can't go to a traditional lender for a home. Ivey Hall is the executive director for the non-profit and says each home they build is from the ground up. 

"I think it's a great opportunity for us to be able to stretch our dollars even more," Hall said.

Hall says House Bill 1291 can help them save money on building materials and serve more families.

The bill says "repeal and reserve an income tax credit for business enterprises for leased  3 motor vehicles; to exempt from sales and use taxation property used in construction,  4 renovation, and rehabilitation of affordable housing by nonprofit organizations." 

This means items they buy to build a home like the plumbing systems, framers, footers, and HVAC units will be tax-exempt. 

"If we can save a little bit on this house, we can put that towards another house. All of that adds us to us being able to put more people into homeowner opportunities," Hall said. 

Hall says just the lumber to build a home can cost almost $15,000. Hall says in recent years the cost for building materials has gone up and builders have paid almost $10,000 for a framing package. 

House Representative Dale Washburn is one of the sponsors of the bill. 

13WMAZ has reached out for comment on his sponsorship of the bill and we have not heard back.

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