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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Former Atlanta Mayor Keisha Lance Bottoms announced her bid for Georgia governor in May. (Ben Gray for the AJC)

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Senate Majority Leader John Thune, R-S.D. (center) is flanked by GOP whip Sen. John Barrasso, R-Wyo. (left) and Finance Committee Chairman Mike Crapo, R-Idaho, as Thune speak to reporters at the Capitol in Washington on Tuesday, July 1, 2025. Earlier Tuesday, the Senate passed the budget reconciliation package of President Donald Trump's signature bill of big tax breaks and spending cuts. (J. Scott Applewhite/AP)

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