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

26 LC 44 3464S Senate Bill 59 By: Senators Watson of the 11th, Hickman of the 4th, Goodman of the 8th, Anderson of the 24th, Summers of the 13th and others AS PASSED 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 cred its, so as to revise the2 aggregate cap and application process for tax credits for timber producers incurring losses3 from Hurricane Helene; to provide for related matters; to provide for an effective date and4 applicability; to repeal conflicting laws; and for other purposes.5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6 SECTION 1.7 Article 2 of Chapter 7 of Title 48 of the Official Code of Geor gia Annotated, relating to8 imposition, rate, computation, exemptions, and credits, is amen ded in Code9 Section 48-7-40.37, relating to tax credits for timber producer s incurring losses from10 Hurricane Helene, by revising subsections (c) through (f) as fo llows:11 "(c)(1) A taxpayer shall be allowed tax credits against the tax imposed by this article in12 an amount equal to 100 percent of such taxpayer's timber casual ty loss; provided,13 however, that the credit amount shall not exceed the number of the taxpayer's affected14 acres of eligible timber property in such disaster areas multiplied by $550.00.15 S. B. 59 - 1 - 26 LC 44 3464S (2) To be allowed such tax credits, a taxpayer shall submit an application for preapproval16 of such credits based on timber casualty losses incurred by suc h taxpayer by17 December 31, 2025; provided, however, that preapproval shall no t be required for18 applications received on or after January 1, 2026.19 (d)(1) The commissioner shall require preapproval applications to contain such20 information as is necessary to substantiate a taxpayer's eligibility for tax credits allowed21 pursuant to this Code section.22 (2) The commissioner is authorized to require electronic submi ssion of preapproval23 applications in the manner specified by the commissioner.24 (3) The commissioner shall review completed preapproval applications in the order in25 which such applications were submitted and shall provide notice to each taxpayer that26 submitted an application within 30 days of receipt stating whet her such taxpayer's27 application is complete or incomplete.28 (4) In no event shall the commissioner preapprove tax credits pursuant to this Code29 section in an amount that exceeds $200 $250 million in aggregate.30 (5) In the event that properly completed and timely submitted preapproval applications31 are submitted for an amount that exceeds the amount of funds available to fully fund the32 tax credits requested, the commissioner shall prorate the avail able funds between or33 among the applicants.34 (6) The commissioner shall approve properly completed and time ly submitted35 preapproval applications and issue a preapproval certificate to the taxpayer by36 January 31, 2026, certifying the amount of credits such taxpayer is eligible to claim if the37 taxpayer meets the conditions of this Code section.38 (e) In no event shall the amount of the tax credits allowed pu rsuant to this Code section39 exceed $200 $250 million in aggregate.40 S. B. 59 - 2 - 26 LC 44 3464S (f)(1)(A)(i) Except as otherwise provided in division (ii) of this subparagraph, tax41 Tax credits allowed pursuant to this Code section shall be eligible to be claimed only42 by the taxpayer to which the commissioner issued a preapproval certificate.43 (ii) On and after January 1, 2026, tax credits allowed pursuant to this Code section44 shall be eligible to be claimed by taxpayers without the issuan ce of a preapproval45 certificate up to the maximum aggregate provided for in subsection (e) of this Code46 section in order of receipt of applications by the commissioner, and the commissioner47 shall:48 (I) Begin accepting such applications no later than July 1, 2026; and49 (II) Within 45 days of submission of an application by each ta xpayer, provide50 notice to such taxpayer of acceptance or rejection of such application.51 (B) Tax credits allowed pursuant to this Code section shall on ly be claimed in the52 taxable year in which the taxpayer first completes:53 (i) The restoration of each acre for which timber casualty losses were incurred to a54 condition that has an adequately stocked stand that is expected to result in forest55 products or ecological services in the foreseeable future; or56 (ii) The replanting of timber in a quantity projected to yield at maturity at least 9057 percent of the value of the timber casualty loss claimed. Such timber shall be planted58 within the same county in which the eligible timber property was being grown when59 the timber casualty loss was incurred. Timber market condition s as of60 September 25, 2024, shall be used for the purposes of establishing projected value.61 (2) To claim tax credits allowed pursuant to this Code section, a taxpayer shall attach to62 such taxpayer's state tax return certification from the taxpaye r that the requirements of63 this Code section have been met and any other information required by the commissioner,64 including information which demonstrates that it has completed the restoration or65 replanting of timber required pursuant to paragraph (1) of this subsection.66 S. B. 59 - 3 - 26 LC 44 3464S (3) Any tax credits allowed pursuant to this Code section shall be claimed on or before67 December 31, 2030."68 SECTION 2.69 This Act shall become effective upon its approval by the Governor or upon its becoming law70 without such approval, and shall be applicable to all taxable y ears beginning on or after71 January 1, 2026.72 SECTION 3.73 All laws and parts of laws in conflict with this Act are repealed.74 S. B. 59 - 4 -