In the 2012 legislative session, Georgia's tax system was significantly reformed, including a sales tax exemption for manufacturing beginning in 2013. To compensate for potential revenue losses, the new legislation allows local governments to impose an excise tax on energy used in manufacturing. This excise tax, which will be phased in over four years starting in 2013, requires local governments to adhere to specific rules for proper implementation.

To facilitate this process, a model intergovernmental agreement has been developed for use with county governments when they choose to implement the excise tax. This model ensures compliance with statutory requirements and supports consistent application across jurisdictions.