SB59: SB59 Bona Fide Conservation Use Property; a limitation on leased property; remove

Georgia created a tax credit to help timber producers recover from losses caused by Hurricane Helene, capped at $200 million total across all taxpayers. This bill raises that statewide cap to $250 million and updates the application process. Producers who want the credit guaranteed must apply for preapproval by December 31, 2025, and the Department of Revenue must issue preapproval certificates by January 31, 2026. Starting January 1, 2026, producers can also claim the credit without preapproval, on a first-come basis up to the new cap, once the department begins taking those applications no later than July 1, 2026. To actually claim the money, a taxpayer must have finished restoring or replanting the timberland, with replanting expected to recover at least 90 percent of the lost value. All credits must be claimed by December 31, 2030. The bill would take effect if signed by the Governor and apply to tax years starting in 2026, though it was vetoed.

• Raises the total statewide cap on Hurricane Helene timber casualty tax credits from $200 million to $250 million.
• Keeps a December 31, 2025 deadline for producers to apply for preapproval of the credit, after which preapproval is no longer required.
• Allows the Department of Revenue to accept credit claims without preapproval starting after January 1, 2026, processed in the order applications are received.
• Requires the department to start accepting these no-preapproval applications no later than July 1, 2026, and respond within 45 days.
• Requires producers to finish restoring or replanting affected timberland before they can claim the credit on their tax return.
• Sets a final deadline of December 31, 2030 for claiming any of these tax credits.

Timber producers whose forestland was damaged by Hurricane Helene, the Georgia Department of Revenue, which reviews applications and issues preapproval certificates, and county-level timber operations in the disaster-affected areas where replanting must occur.

Timber producers recovering from Hurricane Helene damage would have access to a larger pool of tax relief, up to $250 million instead of $200 million, and a clearer path to claim credits even after missing the preapproval window, but only once they complete restoration or replanting work.

• Section 1 amends O.C.G.A. § 48-7-40.37 to raise the aggregate cap on timber casualty loss tax credits from $200 million to $250 million in subsections (d)(4) and (e).
• Subsection (c) sets the credit at 100 percent of a taxpayer's timber casualty loss, capped at $550 per affected acre of eligible timber property.
• Subsection (d) requires preapproval applications by December 31, 2025, with the commissioner issuing preapproval certificates by January 31, 2026.
• Subsection (f) allows claims without preapproval starting January 1, 2026, processed in order of receipt, with applications accepted no later than July 1, 2026 and decisions within 45 days.
• Subsection (f) requires taxpayers to complete restoration to an adequately stocked stand or replant timber projected to recover at least 90 percent of the lost value before claiming the credit.
• Subsection (f) sets December 31, 2030 as the final deadline to claim any credits under this section.
• Section 2 makes the Act effective upon the Governor's approval and applicable to taxable years beginning on or after January 1, 2026.

1. 2026-05-12Veto V9
2. 2026-05-12Senate Date Vetoed by Governor (Senate)
3. 2026-04-10Senate Sent to Governor (Senate)
4. 2026-03-12Senate Agreed House Amend or Sub (Senate)
5. 2026-02-26House Passed/Adopted By Substitute (House)
6. 2026-02-26House Third Readers (House)
7. 2026-02-18House Committee Favorably Reported By Substitute (House)
8. 2025-04-04House Withdrawn, Recommitted (House)

• Sam Watson (R, SD-011)Primary sponsor
• Billy Hickman (R, SD-004)
• Russ Goodman (R, SD-008)
• Lee Anderson (R, SD-024)
• Carden Summers (R, SD-013)
• Drew Echols (R, SD-049)
• Angie O'Steen (R, HD-169)

1. PassedSenate voteFebruary 19, 2025

   31 yea, 21 nay (1 not voting, 3 absent)

   Motion To Engross: Sb 45, Sb 59, Sb 89, And Sr 56: Senate Vote #63

2. PassedSenate voteFebruary 19, 2025

   50 yea, 1 nay (0 not voting, 5 absent)

   Passage: Senate Vote #66

3. PassedHouse voteFebruary 26, 2026

   154 yea, 3 nay (12 not voting, 8 absent)

   Passage: House Vote #575

4. PassedSenate voteMarch 12, 2026

   49 yea, 0 nay (3 not voting, 3 absent)

   Agree To House Substitute: Senate Vote #715

• timber tax credit
• Hurricane Helene relief
• Georgia tax law
• agriculture and forestry
• disaster recovery