| 1 | 1 | | 25 LC 50 1013 |
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| 2 | 2 | | House Bill 151 |
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| 3 | 3 | | By: Representatives Momtahan of the 17 |
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| 4 | 4 | | th |
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| 5 | 5 | | , Cannon of the 172 |
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| 6 | 6 | | nd |
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| 7 | 7 | | , Hagan of the 156 |
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| 8 | 8 | | th |
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| 9 | 9 | | , Corbett |
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| 10 | 10 | | of the 174 |
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| 11 | 11 | | th |
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| 12 | 12 | | , O’Steen of the 169 |
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| 13 | 13 | | th |
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| 14 | 14 | | , and others |
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| 15 | 15 | | A BILL TO BE ENTITLED |
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| 16 | 16 | | AN ACT |
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| 17 | 17 | | To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to |
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| 18 | 18 | | 1 |
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| 19 | 19 | | income taxes, so as to provide for a deduction from Georgia taxable income for casualty2 |
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| 20 | 20 | | losses of timber in an amount based on the diminution of value; to provide for conditions and3 |
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| 21 | 21 | | limitations; to provide for an aggregate cap; to provide for related matters; to provide for an4 |
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| 22 | 22 | | effective date and applicability; to repeal conflicting laws; and for other purposes.5 |
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| 23 | 23 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 |
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| 24 | 24 | | SECTION 1.7 |
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| 25 | 25 | | Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,8 |
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| 26 | 26 | | is amended in subsection (b) of Code Section 48-7-27, relating to the computation of taxable9 |
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| 27 | 27 | | net income, by adding a new paragraph to read as follows:10 |
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| 28 | 28 | | "(17)(A) There shall be subtracted from Georgia taxable income the amount of any |
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| 29 | 29 | | 11 |
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| 30 | 30 | | casualty loss for timber claimed on the taxpayer's federal income tax return that is equal12 |
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| 31 | 31 | | to the fair market value of up to 2,000 acres of timberland after the casualty loss13 |
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| 32 | 32 | | subtracted from the fair market value of such acres before such loss to the extent such14 |
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| 33 | 33 | | amount was:15 |
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| 34 | 34 | | (i) In excess of the cost or other basis reported on such federal income tax return; 16 |
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| 35 | 35 | | H. B. 151 |
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| 36 | 36 | | - 1 - 25 LC 50 1013 |
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| 37 | 37 | | (ii) Attributable to property owned by the taxpayer in this state;17 |
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| 38 | 38 | | (iii) Not claimed as a deduction for any other person with respect to the same18 |
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| 39 | 39 | | timberland;19 |
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| 40 | 40 | | (iv) In excess of the total value received directly or indirectly related to such loss,20 |
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| 41 | 41 | | including insurance payments, tax credits, tax deductions, disaster payments, grants,21 |
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| 42 | 42 | | and relief funding; and22 |
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| 43 | 43 | | (v) Not otherwise deducted in determining such taxpayer's taxable income as defined23 |
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| 44 | 44 | | under the Internal Revenue Code of 1986.24 |
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| 45 | 45 | | (B) An owner of a Georgia subchapter 'S' corporation, partnership, or limited liability25 |
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| 46 | 46 | | corporation shall be eligible for the deduction allowed pursuant to this paragraph, but26 |
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| 47 | 47 | | only at the entity level.27 |
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| 48 | 48 | | (C) The total amount deducted pursuant to this paragraph shall not exceed $347 million28 |
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| 49 | 49 | | in aggregate for all returns filed in any calendar year. Amounts deducted pursuant to29 |
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| 50 | 50 | | this paragraph shall be tracked by the department as tax returns are accepted and30 |
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| 51 | 51 | | processed. The department shall publish on its public website the current amount31 |
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| 52 | 52 | | deducted pursuant to this paragraph for the year to date and shall display the remaining32 |
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| 53 | 53 | | amount that may be deducted pursuant to this paragraph for the year. Any amount33 |
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| 54 | 54 | | deducted that exceeds the annual limit shall be added back to the Georgia taxable34 |
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| 55 | 55 | | income of those taxpayers by the department."35 |
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| 56 | 56 | | SECTION 2.36 |
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| 57 | 57 | | This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years37 |
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| 58 | 58 | | beginning on or after January 1, 2025.38 |
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| 59 | 59 | | SECTION 3.39 |
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| 60 | 60 | | All laws and parts of laws in conflict with this Act are repealed.40 |
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| 61 | 61 | | H. B. 151 |
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| 62 | 62 | | - 2 - |
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