25 LC 50 1032-EC
House Bill 223
By: Representatives Burchett of the 176
th
, Efstration of the 104
th
, McDonald III of the 26
th
,
Hong of the 103
rd
, Gambill of the 15
th
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and
1
taxation, so as to exclude from the calculation of taxable net income certain disaster relief2
or assistance grant program payments for agricultural losses suffered due to Hurricane3
Helene; to provide for refundable income tax credits for certain timber producers based on4
certain casualty losses related to Hurricane Helene; to provide for transferability of such5
credits; to provide for an aggregate annual cap; to provide for terms and conditions; to6
provide for credit preapproval; to provide for legislative findings; to provide for definitions;7
to provide for a sales and use tax exemption for a limited period of time for building8
materials used to repair real property structures or fixtures used exclusively for the9
production of animals; to provide for related matters; to provide for an effective date; to10
repeal conflicting laws; and for other purposes.11
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:12
SECTION 1.13
Title 48 of the Official Code of Georgia Annotated, relating to revenue and taxation, is14
amended in Chapter 7, relating to income taxes, by adding a new paragraph to subsection (a)15
of Code Section 48-7-27, relating to computation of taxable net income, to read as follows:16
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"(11.3) For taxable years beginning on or after January 1, 2025, and ending on or before17
December 31, 2029, income received as payments from a federal disaster relief or18
assistance grant program administered by this state or its instrumentalities or the United19
States Department of Agriculture, if such federal grant program was established20
specifically to address agricultural losses suffered due to Hurricane Helene which was a21
weather event declared to be a major disaster in this state by the President of the United22
States during the 2024 calendar year, to the extent such income is included in federal23
adjusted gross income or federal taxable income;"24
SECTION 2.25
Said title is further amended by adding a new Code section to read as follows:26
"48-7-40.37.27
(a)(1) The General Assembly finds and determines that Hurricane Helene has had a28
catastrophic impact on the citizens and the economy of Georgia, has particularly29
devastated the timber industry on which the citizens of Georgia are heavily dependent for30
their livelihood, and has created both a public fire hazard and a danger of insect31
infestations due to the massive amounts of downed timber caused by the severity of this32
natural disaster.33
(2) The General Assembly further finds and declares that it is appropriate and advisable34
to provide relief to the timber industry in the form of a tax credit targeted to those35
taxpayers that have suffered substantial economic losses and that will have to incur36
significant expenses for salvaging downed timber, site clearance, restoration, and37
reforestation over the coming years.38
(b) As used in this Code section, the term:39
(1) 'Disaster area' means the real property encompassed by the borders of the 66 counties40
included in the renewal of the State of Emergency pronounced in the Executive Order of41
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the Governor dated October 29, 2024, and filed in the official records of the office of the42
Governor as Executive Order No. 10.29.24.01.43
(2) 'Eligible timber property' means timber which on September 24, 2024, was being44
grown by a taxpayer in a disaster area as part of a trade or business or a transaction45
entered into for profit.46
(3) 'Timber' means trees grown for the primary purpose of commercial production of47
food or wood or wood fiber products.48
(4) 'Timber casualty loss' means the amount of the diminution of value included in the49
computation of the casualty loss deduction for such casualty losses claimed and allowed50
pursuant to Section 165 of the Internal Revenue Code of 1986 as casualty losses incurred51
by a taxpayer between September 24, 2024, and December 31, 2024, as a result of52
damage to or destruction of eligible timber property caused by Hurricane Helene.53
(c)(1) A taxpayer shall be allowed tax credits against the tax imposed by this article in54
an amount equal to 100 percent of such taxpayer's timber casualty loss; provided,55
however, that the credit amount shall not exceed the number of the taxpayer's affected56
acres of eligible timber property in such disaster areas multiplied by $400.00.57
(2) To be allowed such tax credits, a taxpayer shall submit an application for preapproval58
of such credits based on timber casualty losses incurred by such taxpayer. A taxpayer59
shall submit its preapproval application between July 1, 2025, and December 31, 2025,60
for such preapproval.61
(d)(1) The commissioner shall require preapproval applications to contain such62
information as is necessary to substantiate a taxpayer's eligibility for tax credits allowed63
pursuant to this Code section.64
(2) The commissioner is authorized to require electronic submission of preapproval65
applications in the manner specified by the commissioner.66
(3) The commissioner shall review completed preapproval applications in the order in67
which such applications were submitted and shall provide notice to each taxpayer that68
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submitted an application within 30 days of receipt stating whether such taxpayer's69
application is complete or incomplete.70
(4) In no event shall the commissioner preapprove tax credits pursuant to this Code71
section in an amount that exceeds $200 million in aggregate.72
(5) In the event that properly completed and timely submitted preapproval applications73
are submitted for an amount that exceeds the amount of funds available to fully fund the74
tax credits requested, the commissioner shall prorate the available funds between or75
among the applicants.76
(6) The commissioner shall approve properly completed and timely submitted77
preapproval applications and issue a preapproval certificate to the taxpayer by78
January 31, 2026, certifying the amount of credits such taxpayer is eligible to claim if the79
taxpayer meets the conditions of this Code section.80
(e) In no event shall the amount of the tax credits allowed pursuant to this Code section81
exceed $200 million in aggregate.82
(f)(1)(A) Tax credits allowed pursuant to this Code section shall be eligible to be83
claimed only by the taxpayer to which the commissioner issued a preapproval84
certificate.85
(B) Tax credits allowed pursuant to this Code section shall only be claimed in the86
taxable year in which the taxpayer first completes:87
(i) The restoration of each acre for which timber casualty losses were incurred to a88
condition that has an adequately stocked stand that is expected to result in forest89
products or ecological services in the foreseeable future; or90
(ii) The replanting of timber in a quantity projected to yield at maturity at least 9091
percent of the value of the timber casualty loss claimed. Such timber shall be planted92
within the same county in which the eligible timber property was being grown when93
the timber casualty loss was incurred. Timber market conditions as of94
September 25, 2024, shall be used for the purposes of establishing projected value.95
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(2) To claim tax credits allowed pursuant to this Code section, a taxpayer shall attach to96
such taxpayer's state tax return certification from the taxpayer that the requirements of97
this Code section have been met and any other information required by the commissioner,98
including information which demonstrates that it has completed the restoration or99
replanting of timber required pursuant to paragraph (1) of this subsection.100
(3) Any tax credits allowed pursuant to this Code section shall be claimed on or before101
December 31, 2030.102
(g)(1) The total amount of the tax credits allowed pursuant to this Code section for a103
taxable year may exceed the taxpayer's income tax liability. Such tax credits allowed in104
excess of a taxpayer's income tax liability shall be refundable to such taxpayer, provided105
that such taxpayer is the same taxpayer that incurred the timber casualty loss.106
(2) Tax credits claimed pursuant to this Code section but not used in any taxable year107
may be carried forward for ten years from the close of the taxable year in which the108
credits are claimed.109
(h) Tax credits claimed pursuant to this Code section but neither used by the taxpayer110
against its income tax liability nor refunded may be transferred or sold one time to one111
single other Georgia taxpayer, subject to the following conditions:112
(1) Only the taxpayer that claimed the tax credits allowed pursuant to this Code section113
shall make the transfer or sale of such tax credits;114
(2) The taxpayer that claimed the tax credits allowed pursuant to this Code section shall115
submit to the commissioner written notification of any transfer or sale of such tax credits116
within 30 days after the transfer or sale of the tax credits. Such written notification shall117
include:118
(A) Such taxpayer's credit balance prior to transfer;119
(B) The credit certificate number;120
(C) The remaining balance of credits after transfer;121
(D) The tax identification number of the transferee;122
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(E) The date of transfer;123
(F) The amount of credits transferred; and124
(G) Other information as may be required by the department;125
(3) Failure to comply with any provision of this subsection shall result in the126
disallowance of the tax credits allowed pursuant to this Code section until the taxpayer127
that claimed the credits is in full compliance;128
(4) The transfer or sale of the tax credits shall not extend the time during which such tax129
credits may be used. The carry-forward period for tax credits that are transferred or sold130
shall begin on the date on which such tax credits were originally claimed;131
(5) A transferee shall have only such rights to claim and use the tax credits that were132
available to the transferor at the time of the transfer; provided, however, that a transferee133
shall not be eligible to transfer or receive a refund of such tax credits. To the extent that134
the transferor did not have rights to claim or use the tax credits at the time of the transfer,135
the commissioner shall disallow the tax credits claimed by the transferee or recapture the136
tax credits from the transferee or transferor. The transferee's recourse shall not be against137
the commissioner; and138
(6) The transferee shall acquire the tax credits allowed pursuant to this Code section for139
a minimum of 60 percent of the amount of the tax credits so transferred.140
(i)(1) A taxpayer claiming, transferring, or selling tax credits allowed pursuant to this141
Code section shall be required to reimburse the department for any department initiated142
audits relating to the tax credits, provided that such amount shall not exceed the value of143
the credits claimed by the taxpayer. This paragraph shall not apply to routine tax audits144
of such taxpayer that may include the review of the tax credits provided in this Code145
section.146
(2) The commissioner shall have access to timber property for the purpose of147
determining eligibility for both the preapproval and claiming of tax credits allowed and148
conducting audits pursuant to this Code section, provided that prior notice is given to any149
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taxpayer that submitted a preapproval application or transferred or claimed tax credits150
pursuant to this Code section and the owner of the underlying real property.151
(3) The commissioner may pursue all remedies available by law as necessary to152
recapture tax credits wrongfully preapproved, allowed, or claimed by a taxpayer or a153
taxpayer's transferee.154
(4) The commissioner shall be authorized to consult with the Georgia Forestry155
Commission as necessary to administer and enforce the provisions of this Code section.156
(j) The commissioner shall be authorized to promulgate any rules and regulations157
necessary to implement and administer the provisions of this Code section."158
SECTION 3.159
Said title is further amended in Chapter 8, relating to sales and use taxes, by revising160
paragraph (3) of subsection (a) of Code Section 48-8-3.3, relating to exemptions for161
agricultural operations and establishment of Georgia Agricultural Trust Fund, as follows:162
"(3)(A) 'Agricultural production inputs' means seed; seedlings; plants grown from seed,163
cuttings, or liners; fertilizers; insecticides; livestock and poultry feeds, drugs, and164
instruments used for the administration of such drugs; fencing products and materials165
used to produce agricultural products regardless of whether the fencing products or166
materials become incorporated into real property; fungicides; rodenticides; herbicides;167
defoliants; soil fumigants; plant growth regulating chemicals; desiccants, including, but168
not limited to, shavings and sawdust from wood, peanut hulls, fuller's earth, straw, and169
hay; feed for animals, including, but not limited to, livestock, fish, equine, hogs, or170
poultry; sugar used as food for honeybees kept for the commercial production of honey,171
beeswax, and honeybees; cattle, hogs, sheep, equine, poultry, or bees when sold for172
breeding purposes; ice or other refrigerants, including, but not limited to, nitrogen,173
carbon dioxide, ammonia, and propylene glycol used in the processing for market or174
the chilling of agricultural products in storage facilities, rooms, compartments, or175
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delivery trucks; materials, containers, crates, boxes, labels, sacks, bags, or bottles used
176
for packaging agricultural products when the product is either sold in the containers,177
sacks, bags, or bottles directly to the consumer or when such use is incidental to the sale178
of the product for resale; and containers, plastic, canvas, and other fabrics used in the179
care and raising of agricultural products or canvas used in covering feed bins, silos,180
greenhouses, and other similar storage structures.181
(B) For the period beginning on the effective date of this Act and ending on
182
December 31, 2025, such term also means building materials used to repair real183
property structures or fixtures used exclusively for the production of animals, including,184
but not limited to, poultry sheds and livestock barns."185
SECTION 4.186
This Act shall become effective upon its approval by the Governor or upon its becoming law187
without such approval.188
SECTION 5.189
All laws and parts of laws in conflict with this Act are repealed.190
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