HB134: HB134 Sales and use tax; manufactured homes; revise and expand exemption

Georgia already gives income tax credits to manufacturers that create jobs or invest in facilities in less-developed counties (O.C.G.A. §§ 48-7-40 through 48-7-40.4). This bill adds a new category, 'forestry manufacturing,' defined as any business certified by the state revenue commissioner, in consultation with the State Forestry Commission, that uses wood fiber, forest-derived biomass, wood residuals, or forestry byproducts from Georgia-grown timber as a main ingredient in making forest products, renewable fuels, bio-based chemicals, bioenergy, or similar value-added goods. Forestry manufacturers would qualify for job-creation credits and investment credits at rates that vary by county tier, generally higher than the credits available to other manufacturers, for taxable years 2026 through 2030. Unused credits could be transferred or sold to other Georgia taxpayers under specific notification rules. Total credits statewide are capped at $250 million, with a separate $100 million cap for tier 3 and tier 4 counties, and any future renewal of the program requires a two-thirds vote of the House and Senate. The law would take effect July 1, 2026, and apply to taxable years starting on or after January 1, 2026.

• Creates a new legal definition of 'forestry manufacturing' covering businesses that use domestically sourced wood fiber, biomass, or forestry byproducts to make forest products, fuels, or chemicals.
• Adds forestry manufacturers to Georgia's existing job-creation tax credit program, with lower job-count thresholds needed to qualify for a $500 per-job credit in higher-tier (less developed) counties.
• Sets higher investment tax credit rates for forestry manufacturing facilities than for standard manufacturers, ranging from 3 percent to 15 percent of qualified investment property depending on county tier.
• Allows forestry manufacturers to transfer or sell unused tax credits to other Georgia taxpayers, subject to a one-time transfer rule and a 30-day notification requirement to the Department of Revenue.
• Caps the total forestry manufacturing tax credits statewide at $250 million, with a separate $100 million cap for tier 3 and tier 4 counties, and requires a two-thirds legislative vote to renew the program after it expires.
• Sets the credits to apply only for taxable years 2026 through 2030, after which most of the new provisions automatically repeal on December 31, 2030.

Georgia businesses that manufacture forest products, renewable fuels, bio-based chemicals, or bioenergy from wood fiber and forestry byproducts; the Department of Revenue and State Forestry Commission, which must certify qualifying businesses; other Georgia taxpayers who might buy transferred tax credits; and county governments in the state's less-developed 'tier' counties where these facilities may locate.

Companies that process Georgia timber into fuels, chemicals, or other value-added products could receive larger state tax breaks than other manufacturers for creating jobs or building facilities, especially in the state's poorer counties. The credits are capped and time-limited, and businesses could sell unused credits to other taxpayers rather than losing them.

• Section 2 amends O.C.G.A. § 48-7-40 to define 'forestry manufacturing' and add a $500 per-job credit for forestry manufacturers that increase employment, with required job-increase thresholds ranging from 5 jobs in tier 1 counties to 25 jobs in tier 4 counties.
• Sections 3 through 6 apply the same forestry manufacturing definition and enhanced investment credit rates (3 percent to 15 percent depending on tier) to O.C.G.A. §§ 48-7-40.1 through 48-7-40.4.
• Each amended section adds transfer and sale rules for unused credits, requiring written notice to the Department of Revenue within 30 days and limiting each manufacturer to one transfer per tax year.
• Section 7 creates new Code Section 48-7-40A, capping total forestry manufacturer credits at $250 million statewide and $100 million for tier 3 and tier 4 counties, and requiring a two-thirds vote of the General Assembly to renew the credits.
• Section 8 sets the effective date as July 1, 2026, applying to taxable years beginning on or after January 1, 2026.
• Most new forestry manufacturer provisions are set to expire automatically on December 31, 2030, though credits already earned can still be transferred afterward.

1. 2026-05-06Effective Date 2026-07-01
2. 2026-05-06Act 427
3. 2026-05-06House Date Signed by Governor (House)
4. 2026-04-10House Sent to Governor (House)
5. 2026-03-31Senate Agreed House Amend or Sub (Senate)
6. 2026-03-31House Agreed Senate Amend or Sub As Amended (House)
7. 2026-02-12Senate Passed/Adopted By Substitute (Senate)
8. 2026-02-12Senate Third Read (Senate)

• Beth Camp (R, HD-135)Primary sponsor
• Rick Jasperse (R, HD-011)
• James Burchett (R, HD-176)
• John Corbett (R, HD-174)
• Noel Williams (R, HD-148)
• David Jenkins (R, HD-136)
• Blake Tillery (R, SD-019)

1. PassedHouse voteFebruary 26, 2025

   160 yea, 0 nay (4 not voting, 16 absent)

   Passage: House Vote #91

2. PassedSenate voteApril 2, 2025

   31 yea, 24 nay (0 not voting, 1 absent)

   Motion To Engross: Sb 214, Hb 66, Hb 79, Hb 129, Hb 134, Hb 141, Hb 370, Hb 397, Hb 445, Hb 463, Hb 532, Hb 586, Hb 652: Senate Vote #383

3. PassedSenate voteFebruary 12, 2026

   31 yea, 17 nay (2 not voting, 4 absent)

   Passage By Substitute: Senate Vote #544

4. PassedHouse voteMarch 31, 2026

   156 yea, 5 nay (8 not voting, 7 absent)

   Agree To Senate Sub As Am: House Vote #813

5. PassedSenate voteMarch 31, 2026

   50 yea, 0 nay (1 not voting, 3 absent)

   Agree To House Amendment To Senate Substitute: Senate Vote #923

• tax credits
• forestry industry
• economic development
• manufacturing incentives
• Georgia income tax