HB151: HB151 Income tax; deduction for casualty losses of timber in an amount based on the diminution of value; provide

When a disaster like a storm, fire, or disease outbreak damages standing timber, owners currently rely mainly on federal tax rules to claim losses. This bill would add a new deduction to Georgia's income tax code (O.C.G.A. § 48-7-27) letting timber owners subtract a casualty loss from their Georgia taxable income, based on the drop in fair market value of up to 2,000 acres of timberland, before and after the loss. The deduction only counts the part of the loss that exceeds the property's tax basis, applies only to Georgia property, cannot be claimed twice for the same land, and must be reduced by any insurance, grants, tax credits, or other relief already received. Owners of S corporations, partnerships, or LLCs could only claim it at the business entity level. Statewide, the deduction is capped at $347 million per calendar year, tracked and published by the Department of Revenue, with excess amounts added back to taxable income. The change would take effect July 1, 2025, applying to tax years starting on or after January 1, 2025.

• Creates a new Georgia income tax deduction for casualty losses to timberland, measured by the drop in fair market value on up to 2,000 acres.
• Limits the deduction to losses exceeding the property's cost basis and to timberland located in Georgia.
• Requires the loss amount to be reduced by any insurance payments, tax credits, grants, or other relief already received for the same loss.
• Restricts owners of S corporations, partnerships, or LLCs to claiming the deduction only at the business entity level, not individually.
• Caps the total amount that can be deducted statewide at $347 million per calendar year and requires the Department of Revenue to publicly track and publish the running total.
• Requires the Department of Revenue to add back to taxable income any deducted amount that exceeds the annual statewide cap.

Timberland owners in Georgia who suffer casualty losses from events like storms, fire, or disease, including those who own land through S corporations, partnerships, or LLCs. The Georgia Department of Revenue is also affected, since it must track, cap, and publish deduction totals each year.

Timber owners hit by storms or other disasters could reduce their state tax bill based on how much value their land actually lost, on top of any federal deduction. Because the total benefit is capped at $347 million a year statewide, some owners could see their deductions reduced if the cap is reached.

• Section 1 adds paragraph (17) to O.C.G.A. § 48-7-27(b), creating the timber casualty loss deduction based on fair market value loss on up to 2,000 acres.
• The deduction only covers loss amounts exceeding the taxpayer's cost or other basis reported on the federal return, and only for Georgia property.
• The same timberland loss cannot be claimed as a deduction by more than one person, and the loss must be net of insurance, grants, tax credits, and other relief received.
• Owners of pass-through entities (S corporations, partnerships, LLCs) can only claim the deduction at the entity level, not as individuals.
• Total statewide deductions under this provision are capped at $347 million per calendar year, tracked by the Department of Revenue and published on its website.
• Any deducted amount exceeding the annual cap is added back to the taxpayer's Georgia taxable income by the department.
• Section 2 sets the effective date as July 1, 2025, applying to taxable years beginning on or after January 1, 2025.

1. 2025-01-30House Second Readers (House)
2. 2025-01-29House First Readers (House)
3. 2025-01-28House Hopper (House)

• Martin Momtahan (R, HD-017)Primary sponsor
• Charles Cannon (R, HD-172)
• Leesa Hagan (R, HD-156)
• John Corbett (R, HD-174)
• Angie O'Steen (R, HD-169)
• Noel Williams (R, HD-148)

• timber industry
• income tax deductions
• disaster relief
• agriculture taxation