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

25 LC 50 1013 House Bill 151 By: Representatives Momtahan of the 17th, Cannon of the 172nd, Hagan of the 156th, Corbett of the 174th, O’Steen of the 169th, and others A BILL TO BE ENTITLED AN ACT To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to1 income taxes, so as to provide for a deduction from Georgia ta xable income for casualty2 losses of timber in an amount based on the diminution of value; to provide for conditions and3 limitations; to provide for an aggregate cap; to provide for related matters; to provide for an4 effective date and applicability; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,8 is amended in subsection (b) of Code Section 48-7-27, relating to the computation of taxable9 net income, by adding a new paragraph to read as follows:10 "(17)(A) There shall be subtracted from Georgia taxable income the amount of any11 casualty loss for timber claimed on the taxpayer's federal income tax return that is equal12 to the fair market value of up to 2,000 acres of timberland aft er the casualty loss13 subtracted from the fair market value of such acres before such loss to the extent such14 amount was:15 (i) In excess of the cost or other basis reported on such federal income tax return; 16 H. B. 151 - 1 - 25 LC 50 1013 (ii) Attributable to property owned by the taxpayer in this state;17 (iii) Not claimed as a deduction for any other person with res pect to the same18 timberland;19 (iv) In excess of the total value received directly or indirec tly related to such loss,20 including insurance payments, tax credits, tax deductions, disaster payments, grants,21 and relief funding; and22 (v) Not otherwise deducted in determining such taxpayer's taxable income as defined23 under the Internal Revenue Code of 1986.24 (B) An owner of a Georgia subchapter 'S' corporation, partnership, or limited liability25 corporation shall be eligible for the deduction allowed pursuant to this paragraph, but26 only at the entity level.27 (C) The total amount deducted pursuant to this paragraph shall not exceed $347 million28 in aggregate for all returns filed in any calendar year. Amounts deducted pursuant to29 this paragraph shall be tracked by the department as tax return s are accepted and30 processed. The department sh all publish on its public website the current amount31 deducted pursuant to this paragraph for the year to date and shall display the remaining32 amount that may be deducted pursuant to this paragraph for the year. Any amount33 deducted that exceeds the annual limit shall be added back to t he Georgia taxable34 income of those taxpayers by the department."35 SECTION 2.36 This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years37 beginning on or after January 1, 2025.38 SECTION 3.39 All laws and parts of laws in conflict with this Act are repealed.40 H. B. 151 - 2 -