The House easily passed legislation Monday continuing the state’s tax holiday for back-to-school shoppers.

The measure would allow parents to buy back-to-school clothes and items without having to pay sales taxes on Aug. 1 and 2. The holiday will cost the state and local governments about $70 million in lost tax revenue, according to state estimates.

The bill also gives tax incentives to video game developers and developers of big, regionally important projects. The entire measure, House Bill 958, is expected to cost the state and local governments about $121 million a year.

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Speaker of the House Mike Johnson, R-La., with House Majority Leader Steve Scalise, R-La., speaks to reporters as he heads to the chamber, at the Capitol in Washington, Wednesday, July 2, 2025. (J. Scott Applewhite/AP)

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UPS driver Dan Partyka delivers an overnight package. As more people buy more goods online, the rapid and unrelenting expansion of e-commerce is causing real challenges for the Sandy-Springs based company. (Bob Andres/AJC 2022)

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