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

26 HB 134/AP House Bill 134 (AS PASSED HOUSE AND SENATE) By: Representatives Camp of the 135th, Jasperse of the 11th, Burchett of the 176th, Corbett of the 174th, Williams of the 148th, and others A BILL TO BE ENTITLED AN ACT To amend Article 2 of Chapter 7 of Title 48 of the Official Cod e of Georgia Annotated,1 relating to imposition, rate, computation, exemptions, and credits relative to income taxes,2 so as to provide for various tax credits for forestry manufactu ring facilities; to provide for3 transfer of tax credits and conditions; to provide for reportin g; to provide for aggregate4 maximum amounts of tax credits; to require approval of future amendments by a two-thirds'5 vote of each chamber of the General Assembly; to provide for effective dates and automatic6 repeals; to provide for definitions; to provide for a short title; to provide for related matters;7 to provide for an effective date and applicability; to repeal c onflicting laws; and for other8 purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 This Act shall be known and may be cited as the "Keep Georgia Forested Act."12 SECTION 2.13 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to14 imposition, rate, computation, exemptions, and credits relative to income taxes, is amended15 in Code Section 48-7-40, relating to designation of counties as less developed areas and tax16 credits for certain business enterprises, by revising paragraph (2) of subsection (a) and adding17 H. B. 134 - 1 - 26 HB 134/AP new paragraphs, revising paragraph (2) of subsection (e), and a dding a new subsection to18 read as follows:19 "(2) 'Business enterprise' means any business or the headquarters of any such business20 which is engaged in manufacturing, including, but not limited to, the manufacturing of21 alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric22 vehicle enterprises, warehousing and distribution, processing, telecommunications,23 broadcasting, tourism, research and development industries, biomedical manufacturing,24 forestry manufacturing, and services for the elderly and persons with disabilities. Such25 term shall not include retail businesses. Businesses are eligible for the tax credit provided26 by this Code section at an individual es tablishment of the busi ness based on the27 classification of the individual establishment under the North American Industry28 Classification System. For purposes of this Code section, the term 'establishment' means29 an economic unit at a single physical location where business i s conducted or where30 services or industrial operations are performed. If more than one business activity is31 conducted at the establishment, then only those jobs engaged in the qualifying activity32 will be eligible for the tax credit provided by this Code section."33 "(3.1) 'Establishment' means an economic unit at a single physi cal location where34 business is conducted or where services or industrial operations are performed. If more35 than one business activity is conducted at the establishment, then only those jobs engaged36 in the qualifying activity shall be eligible for the tax credit provided by this Code37 section."38 "(4.1) 'Forestry manufacturing' or 'forestry manufacturer' mean s any business with an39 establishment in this state that is certified by the state reve nue commissioner in40 consultation with the director of the State Forestry Commission as an establishment that41 utilizes wood fiber, forest-derived biomass, wood residuals, or forestry by-products, from42 domestically sourced virgin timber, as a primary feedstock in the manufacture of forest43 products, renewable fuels, bio-based chemicals, bioenergy, or other value-added products44 that support or derive economic value from the forest products supply chain, regardless45 of the establishment's primary North American Industry Classification System code."46 H. B. 134 - 2 - 26 HB 134/AP "(2) Existing business enterprises and, for taxable years beginning on or after January 1,47 2026, and prior to January 1, 2031, forestry manufacturers shall be allowed an additional48 tax credit for taxes imposed under this article equal to $500.00 per eligible new full-time49 employee job the first year in which the new full-time employee job is created. The50 additional credit shall be claimed in the first taxable year in which the new full-time51 employee job is created. The number of new full-time employee jobs shall be determined52 by comparing the monthly average number of full-time employees subject to Georgia53 income tax withholding for the taxable year with the correspond ing period of the prior54 taxable year. In tier 1 counties, those existing business ente rprises and forestry55 manufacturers that increase employment by five or more shall be eligible for the credit. 56 In tier 2 counties, only those existing business enterprises and forestry manufacturers that57 increase employment by ten or more shall be eligible for the cr edit. In tier 3 counties,58 only those existing business enterprises and forestry manufactu rers that increase59 employment by 15 or more shall be eligible for the credit. In tier 4 counties, only those60 existing business enterprises and forestry manufacturers that increase employment by 2561 or more shall be eligible for the credit. The average wage of the new jobs created must62 be above the average wage of the county that has the lowest average wage of any county63 in the state to qualify as reported in the most recently availa ble annual issue of the64 Georgia Employment and Wages Averages Report of the Department of Labor. To65 qualify for a credit under this paragraph, the employer must ma ke health insurance66 coverage available to the employee filling the new full-time job; provided, however, that67 nothing in this paragraph shall be construed to require the employer to pay for all or any68 part of health insurance coverage for such an employee in order to claim the credit69 provided for in this paragraph if such employer does not pay for all or any part of health70 insurance coverage for other employees. Credit shall not be allowed during a year if the71 net employment increase falls below the number required in such tier. Any credit72 generated and utilized for years prior to the year in which the net employment increase 73 H. B. 134 - 3 - 26 HB 134/AP falls below the number required in such tier shall not be affec ted. The state revenue74 commissioner shall adjust the credit allowed each year for net new employment75 fluctuations above the minimum level of the number required in s u c h t i e r . T h i s76 paragraph shall apply only to new eligible full-time jobs creat ed in taxable years77 beginning on or after January 1, 2006, and ending no later than taxable years beginning78 prior to January 1, 2011."79 "(n)(1) Any credits earned under this Code section by a forestry manufacturer for taxable80 years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and81 previously claimed but not used by such forestry manufacturer against its income tax or82 as credit against quarterly or monthly payment under Code Section 48-7-103 as provided83 within this Code secti on, and in addition to the assignability provisions of Code84 Section 48-7-42, may be transferred or sold in whole or in part by such forestry85 manufacturer to another Georgia taxpayer, subject to the following conditions:86 (A) Such forestry manufacturer may make only a single transfer or sale of tax credits87 earned in a taxable year; however, the transfer or sale may inv olve one or more88 transferees; and89 (B) Such forestry manufacturer shall submit to the department a written notification90 of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax91 credits. The notification shall include such forestry manufacturer's tax credit balance92 prior to the transfer, the remaining balance after transfer, all tax identification numbers93 for each transferee, the date of the transfer, the amount trans ferred, and any other94 information required by the department.95 (2) Failure to comply with this subsection shall result in disallowance of the tax credit96 until the forestry manufacturer is in full compliance.97 (3) The transfer or sale of this tax credit shall not extend t he time in which such tax98 credit can be used. The carry-forward period for a tax credit that is transferred or sold99 shall begin on the date in which the tax credit was originally earned.100 H. B. 134 - 4 - 26 HB 134/AP (4) A transferee shall have only such rights to claim and use the tax credit as were101 available to the transferor at the time of the transfer. To the extent that such transferor102 did not have rights to claim or use the tax credit at the time of the transfer, the department103 shall either disallow the tax credit claimed by the transferee or recapture the tax credit104 from the transferee. The transferee's recourse is against the transferor.105 (5) The department shall prepare an annual report of the total amount of credits106 transferred by forestry manufacturers pursuant to this Code sec tion for the prior year. 107 The report required under this paragraph shall be completed no later than December 31108 of each year and presented to each member of the House Committee on Ways and Means109 and the Senate Finance Committee.110 (6) This subsection shall stand repealed by operation of law o n the last moment of111 December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall112 not impair or affect a forestry manufacturer's ability to trans fer an unused credit after113 January 1, 2031, that such taxpayer accrued pursuant to this Co de section for taxable114 years before December 31, 2030."115 SECTION 3.116 Said article is further is amended in Code Section 48-7-40.1, r elating to tax credits for117 business enterprises in less developed areas, by revising subse ction (a) and adding a new118 subsection to read as follows:119 "(a) As used in this Code section, the term:120 (1) 'Broadcasting' means the transmission or licensing of audi o, video, text, or other121 programming content to the gener al public, subscribers, or to t hird parties via radio,122 television, cable, satellite, or the internet or IP and include s motion picture and sound123 recording, editing, production, postproduction, and distribution. Such term is limited to124 establishments classified under the 2007 North American Industry Classification System 125 H. B. 134 - 5 - 26 HB 134/AP Codes 515, broadcasting; 519, internet publishing and broadcast ing; 517,126 telecommunications; and 512, motion picture and sound recording industries.127 (2) 'Business enterprise' means any business or the headquarte rs of any such business128 which is engaged in manufacturing, including, but not limited to, the manufacturing of129 alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric130 vehicle enterprises, warehousing and distribution, processing, telecommunications,131 broadcasting, tourism, biomedical manufacturing, forestry manufacturing, and research132 and development industries. Such term shall not include retail businesses. Businesses133 are eligible for the tax credit provided by this Code section at an individual establishment134 of the business based on the classification of the individual establishment under the North135 American Industry Classification System. For purposes of this Code section, the term136 'establishment'137 (2.1) 'Establishment' means an economic unit at a single physical location where138 business is conducted or where services or industrial operations are performed. If more139 than one business activity is conducted at the establishment, then only those jobs engaged140 in the qualifying activity will be eligible for the tax credit provided by this Code section.141 (2.2) 'Forestry manufacturing' means any business with an establishment in this state that142 is certified by the state revenue commissioner in consultation with the director of the143 State Forestry Commission as an establishment that utilizes woo d fiber, forest-derived144 biomass, wood residuals, or forestry by-products, from domestic ally sourced virgin145 timber, as a primary feedstock in the manufacture of forest pro ducts, renewable fuels,146 bio-based chemicals, bioenergy, or other value-added products t hat support or derive147 economic value from the forest products supply chain, regardless of the establishment's148 primary North American Industry Classification System code.149 (3) 'New full-time employee job' means a newly created position of employment that was150 not previously located in this state, requires a minimum of 35 hours a week, and pays at151 or above the average wage earned in the county with the lowest average wage earned in 152 H. B. 134 - 6 - 26 HB 134/AP this state, as reported in the most recently available annual i ssue of the Georgia153 Employment and Wages Averages Report of the Department of Labor."154 "(l)(1) Any credits earned under this Code section by a forestry manufacturer for taxable155 years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and156 previously claimed but not used by such forestry manufacturer against its income tax or157 as credit against quarterly or monthly payment under Code Section 48-7-103 as provided158 within this Code section, and in addition to the assignability provisions of Code159 Section 48-7-42, may be transferred or sold in whole or in part by such forestry160 manufacturer to another Georgia taxpayer, subject to the following conditions:161 (A) Such forestry manufacturer may make only a single transfer or sale of tax credits162 earned in a taxable year; however, the transfer or sale may inv olve one or more163 transferees; and164 (B) Such forestry manufacturer shall submit to the department a written notification165 of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax166 credits. The notification shall include such forestry manufacturer's tax credit balance167 prior to the transfer, the remaining balance after transfer, all tax identification numbers168 for each transferee, the date of the transfer, the amount trans ferred, and any other169 information required by the department.170 (2) Failure to comply with this subsection shall result in disallowance of the tax credit171 until the forestry manufacturer is in full compliance.172 (3) The transfer or sale of this tax credit shall not extend t he time in which such tax173 credit can be used. The carry-forward period for a tax credit that is transferred or sold174 shall begin on the date in which the tax credit was originally earned.175 (4) A transferee shall have only such rights to claim and use the tax credit as were176 available to the transferor at the time of the transfer. To the extent that such transferor177 did not have rights to claim or use the tax credit at the time of the transfer, the department 178 H. B. 134 - 7 - 26 HB 134/AP shall either disallow the tax credit claimed by the transferee or recapture the tax credit 179 from the transferee. The transferee's recourse is against the transferor.180 (5) The department shall prepare an annual report of the total amount of credits181 transferred by forestry manufacturers pursuant to this Code sec tion for the prior year. 182 The report required under this paragraph shall be completed no later than December 31183 of each year and presented to each member of the House Committee on Ways and Means184 and the Senate Finance Committee.185 (6) This subsection shall stand repealed by operation of law o n the last moment of186 December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall187 not impair or affect a forestry manufacturer's ability to trans fer an unused credit after188 January 1, 2031, that such taxpayer accrued pursuant to this Co de section for taxable189 years before December 31, 2030."190 SECTION 4.191 Said article is further amended in Code Section 48-7-40.2, relating to tax credits for existing192 manufacturing and telecommunications facilities in tier 1 count ies, by adding a new193 paragraph to subsection (a), revising subsection (b), and adding a new subsection to read as194 follows:195 "(0.5) 'Forestry manufacturing' means any business with an esta blishment in this state196 that is certified by the state revenue commissioner in consultation with the director of the197 State Forestry Commission as an establishment that utilizes wood fiber, forest-derived198 biomass, wood residuals, or forestry by-products, from domestic ally sourced virgin199 timber, as a primary feedstock in the manufacture of forest pro ducts, renewable fuels,200 bio-based chemicals, bioenergy, or other value-added products t hat support or derive201 economic value from the forest products supply chain, regardless of the establishment's202 primary North American Industry Classification System code."203 H. B. 134 - 8 - 26 HB 134/AP "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three204 years an existing manufacturing or telecommunications facility or a manufacturing or205 telecommunications support facility in this state in a tier 1 county designated pursuant to206 Code Section 48-7-40, there shall be allowed a credit against the tax imposed under this207 article in an amount equal to 5 percent of the cost of all qual ified investment property208 purchased or acquired by the taxpayer in such year, subject to the conditions and209 limitations set forth in this Code section. In the event such qualified investment property210 purchased or acquired by the taxpayer in such year consists of recycling machinery or211 equipment, a recycling manufacturing facility, pollution control or prevention machinery212 or equipment, a pollution control or prevention facility, or the conversion from defense213 to domestic production, the amount of such credit shall be equal to 8 percent.214 (2) In the case of a taxpayer which operates a forestry manufacturing facility in this state215 in a tier 1 county designated pursuant to Code Section 48-7-40, there shall be allowed a216 credit against the tax imposed under this article for taxable y ears beginning on or after217 January 1, 2026, and prior to January 1, 2031, in an amount equ al to 15 percent of the218 cost of all qualified investment property purchased or acquired by the taxpayer in such219 year, subject to the conditions and limitations set forth in this Code section."220 "(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable221 years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and222 previously claimed but not used by such forestry manufacturer against its income tax or223 as credit against quarterly or monthly payment under Code Section 48-7-103 as provided224 within this Code section, and in addition to the assignability provisions of Code225 Section 48-7-42, may be transferred or sold in whole or in part by such forestry226 manufacturer to another Georgia taxpayer, subject to the following conditions:227 (A) Such forestry manufacturer may make only a single transfer or sale of tax credits228 earned in a taxable year; however, the transfer or sale may inv olve one or more229 transferees; and230 H. B. 134 - 9 - 26 HB 134/AP (B) Such forestry manufacturer shall submit to the department a written notification231 of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax232 credits. The notification shall include such forestry manufacturer's tax credit balance233 prior to the transfer, the remaining balance after transfer, all tax identification numbers234 for each transferee, the date of the transfer, the amount trans ferred, and any other235 information required by the department.236 (2) Failure to comply with this subsection shall result in disallowance of the tax credit237 until the forestry manufacturer is in full compliance.238 (3) The transfer or sale of this tax credit shall not extend t he time in which such tax239 credit can be used. The carry-forward period for a tax credit that is transferred or sold240 shall begin on the date in which the tax credit was originally earned.241 (4) A transferee shall have only such rights to claim and use the tax credit as were242 available to the transferor at the time of the transfer. To the extent that such transferor243 did not have rights to claim or use the tax credit at the time of the transfer, the department244 shall either disallow the tax credit claimed by the transferee or recapture the tax credit245 from the transferee. The transferee's recourse is against the transferor.246 (5) The department shall prepare an annual report of the total amount of credits247 transferred by forestry manufacturers pursuant to this Code sec tion for the prior year. 248 The report required under this paragraph shall be completed no later than December 31249 of each year and presented to each member of the House Committee on Ways and Means250 and the Senate Finance Committee.251 (6) This subsection shall stand repealed by operation of law o n the last moment of252 December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall253 not impair or affect a forestry manufacturer's ability to trans fer an unused credit after254 January 1, 2031, that such taxpayer accrued pursuant to this Co de section for taxable255 years before December 31, 2030."256 H. B. 134 - 10 - 26 HB 134/AP SECTION 5.257 Said article is further is amended in Code Section 48-7-40.3, r elating to tax credits for258 existing manufacturing and telecommunications facilities in tier 2 counties, by adding a new259 paragraph to subsection (a), revising subsection (b), and adding a new subsection to read as260 follows:261 "(0.5) 'Forestry manufacturing' means any business with an esta blishment in this state262 that is certified by the state revenue commissioner in consultation with the director of the263 State Forestry Commission as an establishment that utilizes woo d fiber, forest-derived264 biomass, wood residuals, or forestry by-products, from domestic ally sourced virgin265 timber, as a primary feedstock in the manufacture of forest pro ducts, renewable fuels,266 bio-based chemicals, bioenergy, or other value-added products t hat support or derive267 economic value from the forest products supply chain, regardless of the establishment's268 primary North American Industry Classification System code."269 "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three270 years an existing manufacturing or telecommunications facility or manufacturing or271 telecommunications support facility in this state in a tier 2 county designated pursuant to272 Code Section 48-7-40, there shall be allowed a credit against the tax imposed under this273 article in an amount equal to 3 percent of the cost of all qual ified investment property274 purchased or acquired by the taxpayer in such year, subject to the conditions and275 limitations set forth in this Code section. In the event such qualified investment property276 purchased or acquired by the taxpayer in such year consists of recycling machinery or277 equipment, a recycling manufacturing facility, pollution control or prevention machinery278 or equipment, a pollution control or prevention facility, or the conversion from defense279 to domestic production, the amount of such credit shall be equal to 5 percent.280 (2) In the case of a taxpayer which has operated a forestry manufacturing facility in this281 state in a tier 2 county designated pursuant to Code Section 48 -7-40, there shall be282 allowed a credit against the tax imposed under this article in an amount equal 283 H. B. 134 - 11 - 26 HB 134/AP to 10 percent of the cost of all qualified investment property purchased or acquired by the 284 taxpayer in such year, subj ect to the conditions and limitation s set forth in this Code 285 section."286 "(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable287 years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and288 previously claimed but not used by such forestry manufacturer against its income tax or289 as credit against quarterly or monthly payment under Code Section 48-7-103 as provided290 within this Code section, and in addition to the assignability provisions of Code291 Section 48-7-42, may be transferred or sold in whole or in part by such forestry292 manufacturer to another Georgia taxpayer, subject to the following conditions:293 (A) Such forestry manufacturer may make only a single transfer or sale of tax credits294 earned in a taxable year; however, the transfer or sale may inv olve one or more295 transferees; and296 (B) Such forestry manufacturer shall submit to the department a written notification297 of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax298 credits. The notification shall include such forestry manufacturer's tax credit balance299 prior to the transfer, the remaining balance after transfer, all tax identification numbers300 for each transferee, the date of the transfer, the amount trans ferred, and any other301 information required by the department.302 (2) Failure to comply with this subsection shall result in disallowance of the tax credit303 until the forestry manufacturer is in full compliance.304 (3) The transfer or sale of this tax credit shall not extend t he time in which such tax305 credit can be used. The carry-forward period for a tax credit that is transferred or sold306 shall begin on the date in which the tax credit was originally earned.307 (4) A transferee shall have only such rights to claim and use the tax credit as were308 available to the transferor at the time of the transfer. To the extent that such transferor309 did not have rights to claim or use the tax credit at the time of the transfer, the department 310 H. B. 134 - 12 - 26 HB 134/AP shall either disallow the tax credit claimed by the transferee or recapture the tax credit 311 from the transferee. The transferee's recourse is against the transferor.312 (5) The department shall prepare an annual report of the total amount of credits313 transferred by forestry manufacturers pursuant to this Code sec tion for the prior year. 314 The report required under this paragraph shall be completed no later than December 31315 of each year and presented to each member of the House Committee on Ways and Means316 and the Senate Finance Committee.317 (6) This subsection shall stand repealed by operation of law o n the last moment of318 December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall319 not impair or affect a forestry manufacturer's ability to trans fer an unused credit after320 January 1, 2031, that such taxpayer accrued pursuant to this Co de section for taxable321 years before December 31, 2030."322 SECTION 6.323 Said article is further is amended in Code Section 48-7-40.4, r elating to tax credits for324 existing manufacturing and telecommunications facilities or man ufacturing and325 telecommunications support facilities in tier 3 or 4 counties, by adding a new paragraph to326 subsection (a), revising subsection (b), and adding a new subsection to read as follows:327 "(0.5) 'Forestry manufacturing' means any business with an esta blishment in this state328 that is certified by the state revenue commissioner in consultation with the director of the329 State Forestry Commission as an establishment that utilizes wood fiber, forest-derived330 biomass, wood residuals, or forestry by-products, from domestic ally sourced virgin331 timber, as a primary feedstock in the manufacture of forest pro ducts, renewable fuels,332 bio-based chemicals, bioenergy, or other value-added products t hat support or derive333 economic value from the forest products supply chain, regardless of the establishment's334 primary North American Industry Classification System code."335 H. B. 134 - 13 - 26 HB 134/AP "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three336 years an existing manufacturing or telecommunications facility or manufacturing or337 telecommunications support facility in this state in a tier 3 or a tier 4 county designated338 pursuant to Code Section 48-7-40, there shall be allowed a credit against the tax imposed339 under this article in an amount equal to 1 percent of the cost of all qualified investment340 property purchased or acquired by the taxpayer in such year, subject to the conditions and341 limitations set forth in this Code section. In the event such qualified investment property342 purchased or acquired by the taxpayer in such year consists of recycling machinery or343 equipment, a recycling manufacturing facility, pollution control or prevention machinery344 or equipment, a pollution control or prevention facility, or the conversion from defense345 to domestic production, the amount of such credit shall be equal to 3 percent.346 (2) In the case of a taxpayer which has operated a forestry manufacturer facility in this347 state in a tier 3 or a tier 4 county designated pursuant to Code Section 48-7-40, there shall348 be allowed a credit against the tax imposed under this article in an amount equal to 3349 percent of the cost of all qualified investment property purcha sed or acquired by the350 taxpayer in such year, subject to the conditions and limitation s set forth in this Code351 section."352 "(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable353 years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and354 previously claimed but not used by such forestry manufacturer against its income tax or355 as credit against quarterly or monthly payment under Code Section 48-7-103 as provided356 within this Code section, and in addition to the assignability provisions of Code357 Section 48-7-42, may be transferred or sold in whole or in part by such forestry358 manufacturer to another Georgia taxpayer, subject to the following conditions:359 (A) Such forestry manufacturer may make only a single transfer or sale of tax credits360 earned in a taxable year; however, the transfer or sale may inv olve one or more361 transferees; and362 H. B. 134 - 14 - 26 HB 134/AP (B) Such forestry manufacturer shall submit to the department a written notification363 of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax364 credits. The notification shall include such forestry manufacturer's tax credit balance365 prior to the transfer, the remaining balance after transfer, all tax identification numbers366 for each transferee, the date of the transfer, the amount trans ferred, and any other367 information required by the department.368 (2) Failure to comply with this subsection shall result in disallowance of the tax credit369 until the forestry manufacturer is in full compliance.370 (3) The transfer or sale of this tax credit shall not extend t he time in which such tax371 credit can be used. The carry-forward period for a tax credit that is transferred or sold372 shall begin on the date in which the tax credit was originally earned.373 (4) A transferee shall have only such rights to claim and use the tax credit as were374 available to the transferor at the time of the transfer. To the extent that such transferor375 did not have rights to claim or use the tax credit at the time of the transfer, the department376 shall either disallow the tax credit claimed by the transferee or recapture the tax credit377 from the transferee. The transferee's recourse is against the transferor.378 (5) The department shall prepare an annual report of the total amount of credits379 transferred by forestry manufacturers pursuant to this Code sec tion for the prior year. 380 The report required under this paragraph shall be completed no later than December 31381 of each year and presented to each member of the House Committee on Ways and Means382 and the Senate Finance Committee.383 (6) This subsection shall stand repealed by operation of law o n the last moment of384 December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall385 not impair or affect a forestry manufacturer's ability to trans fer an unused credit after386 January 1, 2031, that such taxpayer accrued pursuant to this Co de section for taxable387 years before December 31, 2030."388 H. B. 134 - 15 - 26 HB 134/AP SECTION 7.389 Said article is further amended by adding a new Code section to read as follows:390 "48-7-40.4A.391 (a) Except as otherwise provided in subsection (b) of this Cod e section, the aggregate392 amount of tax credits allowed to forestry manufacturers pursuant to Code Sections 48-7-40,393 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4 shall not exceed $250 million.394 (b) The aggregate amount of tax credits allowed to forestry ma nufacturers in tier 3 and395 tier 4 counties pursuant to Code Sections 48-7-40 and 48-7-40.4 shall not exceed $100396 million.397 (c) No renewal or extension of tax credits allowed to forestry manufacturers pursuant to398 Code Sections 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48- 7-40.4 shall become399 effective unless approved by two-thirds of the members elected to each chamber of the400 General Assembly in a roll-call vote.401 (d) The department may promulgate such regulations as necessary and advisable for the402 administration of Code Sections 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4."403 SECTION 8.404 This Act shall become effective on July 1, 2026, and shall be a pplicable to taxable years405 beginning on or after January 1, 2026.406 SECTION 9.407 All laws and parts of laws in conflict with this Act are repealed.408 H. B. 134 - 16 -