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The House Committee on Ways and Means offers the following substitute to HB 223:
A BILL TO BE ENTITLED
AN ACT
To amend Title 48 of the Official Code of Georgia Annotated, relating to revenue and1
taxation, so as to exclude from the calculation of taxable net income certain disaster relief2
or assistance grant program payments and crop insurance proceeds for agricultural losses3
suffered due to Hurricane Helene; to provide for refundable income tax credits for certain4
timber producers based on certain casualty losses related to Hurricane Helene; to provide for5
transferability of such credits; to provide for an aggregate annual cap; to provide for terms6
and conditions; to provide for credit preapproval; to provide for legislative findings; to7
provide for definitions; to provide for a sales and use tax exemption for a limited period of8
time for building materials used to repair or replace greenhouses and real property structures9
or fixtures used exclusively for the production of animals; to provide for related matters; to10
provide for an effective date; to 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 new paragraphs 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, 2024, 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
(11.4) For taxable years beginning on or after January 1, 2024, and ending on or before25
December 31, 2029, federal crop insurance proceeds received for the destruction or26
damage to crops due to Hurricane Helene which was a weather event declared to be a27
major disaster in this state by the President of the United States during the 2024 calendar28
year, to the extent such proceeds are included in federal adjusted gross income or federal29
taxable income;"30
SECTION 2.31
Said title is further amended by adding a new Code section to read as follows:32
"48-7-40.37.33
(a)(1) The General Assembly finds and determines that Hurricane Helene has had a34
catastrophic impact on the citizens and the economy of Georgia, has particularly35
devastated the timber industry on which the citizens of Georgia are heavily dependent for36
their livelihood, and has created both a public fire hazard and a danger of insect37
infestations due to the massive amounts of downed timber caused by the severity of this38
natural disaster.39
(2) The General Assembly further finds and declares that it is appropriate and advisable40
to provide relief to the timber industry in the form of a tax credit targeted to those41
taxpayers that have suffered substantial economic losses and that will have to incur42
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significant expenses for salvaging downed timber, site clearance, restoration, and43
reforestation over the coming years.44
(b) As used in this Code section, the term:45
(1) 'Disaster area' means the real property encompassed by the borders of the 66 counties46
included in the renewal of the State of Emergency pronounced in the Executive Order of47
the Governor dated October 29, 2024, and filed in the official records of the office of the48
Governor as Executive Order No. 10.29.24.01.49
(2) 'Eligible timber property' means timber which on September 24, 2024, was being50
grown by a taxpayer in a disaster area as part of a trade or business or a transaction51
entered into for profit.52
(3) 'Timber' means trees grown for the primary purpose of commercial production of53
food or wood or wood fiber products.54
(4) 'Timber casualty loss' means the amount of the diminution of value included in the55
computation of the casualty loss deduction for such casualty losses claimed and allowed56
pursuant to Section 165 of the Internal Revenue Code of 1986 as casualty losses incurred57
by a taxpayer between September 24, 2024, and December 31, 2024, as a result of58
damage to or destruction of eligible timber property caused by Hurricane Helene.59
(c)(1) A taxpayer shall be allowed tax credits against the tax imposed by this article in60
an amount equal to 100 percent of such taxpayer's timber casualty loss; provided,61
however, that the credit amount shall not exceed the number of the taxpayer's affected62
acres of eligible timber property in such disaster areas multiplied by $400.00.63
(2) To be allowed such tax credits, a taxpayer shall submit an application for preapproval64
of such credits based on timber casualty losses incurred by such taxpayer by65
December 31, 2025.66
(d)(1) The commissioner shall require preapproval applications to contain such67
information as is necessary to substantiate a taxpayer's eligibility for tax credits allowed68
pursuant to this Code section.69
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(2) The commissioner is authorized to require electronic submission of preapproval70
applications in the manner specified by the commissioner.71
(3) The commissioner shall review completed preapproval applications in the order in72
which such applications were submitted and shall provide notice to each taxpayer that73
submitted an application within 30 days of receipt stating whether such taxpayer's74
application is complete or incomplete.75
(4) In no event shall the commissioner preapprove tax credits pursuant to this Code76
section in an amount that exceeds $200 million in aggregate.77
(5) In the event that properly completed and timely submitted preapproval applications78
are submitted for an amount that exceeds the amount of funds available to fully fund the79
tax credits requested, the commissioner shall prorate the available funds between or80
among the applicants.81
(6) The commissioner shall approve properly completed and timely submitted82
preapproval applications and issue a preapproval certificate to the taxpayer by83
January 31, 2026, certifying the amount of credits such taxpayer is eligible to claim if the84
taxpayer meets the conditions of this Code section.85
(e) In no event shall the amount of the tax credits allowed pursuant to this Code section86
exceed $200 million in aggregate.87
(f)(1)(A) Tax credits allowed pursuant to this Code section shall be eligible to be88
claimed only by the taxpayer to which the commissioner issued a preapproval89
certificate.90
(B) Tax credits allowed pursuant to this Code section shall only be claimed in the91
taxable year in which the taxpayer first completes:92
(i) The restoration of each acre for which timber casualty losses were incurred to a93
condition that has an adequately stocked stand that is expected to result in forest94
products or ecological services in the foreseeable future; or95
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(ii) The replanting of timber in a quantity projected to yield at maturity at least 9096
percent of the value of the timber casualty loss claimed. Such timber shall be planted97
within the same county in which the eligible timber property was being grown when98
the timber casualty loss was incurred. Timber market conditions as of99
September 25, 2024, shall be used for the purposes of establishing projected value.100
(2) To claim tax credits allowed pursuant to this Code section, a taxpayer shall attach to101
such taxpayer's state tax return certification from the taxpayer that the requirements of102
this Code section have been met and any other information required by the commissioner,103
including information which demonstrates that it has completed the restoration or104
replanting of timber required pursuant to paragraph (1) of this subsection.105
(3) Any tax credits allowed pursuant to this Code section shall be claimed on or before106
December 31, 2030.107
(g)(1) The total amount of the tax credits allowed pursuant to this Code section for a108
taxable year may exceed the taxpayer's income tax liability. Such tax credits allowed in109
excess of a taxpayer's income tax liability shall be refundable to such taxpayer, provided110
that such taxpayer is the same taxpayer that incurred the timber casualty loss.111
(2) Tax credits claimed pursuant to this Code section but not used in any taxable year112
may be carried forward for ten years from the close of the taxable year in which the113
credits are claimed.114
(h) Tax credits claimed pursuant to this Code section but neither used by the taxpayer115
against its income tax liability nor refunded may be transferred or sold one time to one116
single other Georgia taxpayer, subject to the following conditions:117
(1) Only the taxpayer that claimed the tax credits allowed pursuant to this Code section118
shall make the transfer or sale of such tax credits;119
(2) The taxpayer that claimed the tax credits allowed pursuant to this Code section shall120
submit to the commissioner written notification of any transfer or sale of such tax credits121
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within 30 days after the transfer or sale of the tax credits. Such written notification shall122
include:123
(A) Such taxpayer's credit balance prior to transfer;124
(B) The credit certificate number;125
(C) The remaining balance of credits after transfer;126
(D) The tax identification number of the transferee;127
(E) The date of transfer;128
(F) The amount of credits transferred; and129
(G) Other information as may be required by the department;130
(3) Failure to comply with any provision of this subsection shall result in the131
disallowance of the tax credits allowed pursuant to this Code section until the taxpayer132
that claimed the credits is in full compliance;133
(4) The transfer or sale of the tax credits shall not extend the time during which such tax134
credits may be used. The carry-forward period for tax credits that are transferred or sold135
shall begin on the date on which such tax credits were originally claimed;136
(5) A transferee shall have only such rights to claim and use the tax credits that were137
available to the transferor at the time of the transfer; provided, however, that a transferee138
shall not be eligible to transfer or receive a refund of such tax credits. To the extent that139
the transferor did not have rights to claim or use the tax credits at the time of the transfer,140
the commissioner shall disallow the tax credits claimed by the transferee or recapture the141
tax credits from the transferee or transferor. The transferee's recourse shall not be against142
the commissioner; and143
(6) The transferee shall acquire the tax credits allowed pursuant to this Code section for144
a minimum of 60 percent of the amount of the tax credits so transferred.145
(i)(1) A taxpayer claiming, transferring, or selling tax credits allowed pursuant to this146
Code section shall be required to reimburse the department for any department initiated147
audits relating to the tax credits, provided that such amount shall not exceed the value of148
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the credits claimed by the taxpayer. This paragraph shall not apply to routine tax audits149
of such taxpayer that may include the review of the tax credits provided in this Code150
section.151
(2) The commissioner shall have access to timber property for the purpose of152
determining eligibility for both the preapproval and claiming of tax credits allowed and153
conducting audits pursuant to this Code section, provided that prior notice is given to any154
taxpayer that submitted a preapproval application or transferred or claimed tax credits155
pursuant to this Code section and the owner of the underlying real property.156
(3) The commissioner may pursue all remedies available by law as necessary to157
recapture tax credits wrongfully preapproved, allowed, or claimed by a taxpayer or a158
taxpayer's transferee.159
(4) The commissioner shall be authorized to consult with the Georgia Forestry160
Commission as necessary to administer and enforce the provisions of this Code section.161
(j) The commissioner shall be authorized to promulgate any rules and regulations162
necessary to implement and administer the provisions of this Code section."163
SECTION 3.164
Said title is further amended in Chapter 8, relating to sales and use taxes, by revising165
paragraph (3) of subsection (a) of Code Section 48-8-3.3, relating to exemptions for166
agricultural operations and establishment of Georgia Agricultural Trust Fund, as follows:167
"(3)(A) 'Agricultural production inputs' means seed; seedlings; plants grown from seed,168
cuttings, or liners; fertilizers; insecticides; livestock and poultry feeds, drugs, and169
instruments used for the administration of such drugs; fencing products and materials170
used to produce agricultural products regardless of whether the fencing products or171
materials become incorporated into real property; fungicides; rodenticides; herbicides;172
defoliants; soil fumigants; plant growth regulating chemicals; desiccants, including, but173
not limited to, shavings and sawdust from wood, peanut hulls, fuller's earth, straw, and174
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hay; feed for animals, including, but not limited to, livestock, fish, equine, hogs, or175
poultry; sugar used as food for honeybees kept for the commercial production of honey,176
beeswax, and honeybees; cattle, hogs, sheep, equine, poultry, or bees when sold for177
breeding purposes; ice or other refrigerants, including, but not limited to, nitrogen,178
carbon dioxide, ammonia, and propylene glycol used in the processing for market or179
the chilling of agricultural products in storage facilities, rooms, compartments, or180
delivery trucks; materials, containers, crates, boxes, labels, sacks, bags, or bottles used181
for packaging agricultural products when the product is either sold in the containers,182
sacks, bags, or bottles directly to the consumer or when such use is incidental to the sale183
of the product for resale; and containers, plastic, canvas, and other fabrics used in the184
care and raising of agricultural products or canvas used in covering feed bins, silos,185
greenhouses, and other similar storage structures.186
(B)(i) For the period beginning on the effective date of this Act and ending on187
December 31, 2025, such term also means building materials used to repair or188
replace:189
(I) Greenhouses; and190
(II) Real property structures or fixtures used exclusively for the production of191
animals, including, but not limited to, poultry sheds and livestock barns.192
(ii) Notwithstanding subsection (c) of Code Section 48-8-63, contractors shall not193
incur any use tax on any building materials that a qualified agricultural producer194
purchases tax-exempt under division (i) of this subparagraph for use in an agricultural195
operation and furnishes to such contractor for installation into real property."196
SECTION 4.197
This Act shall become effective upon its approval by the Governor or upon its becoming law198
without such approval.199
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SECTION 5.200
All laws and parts of laws in conflict with this Act are repealed.201
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