HB223: HB223 Revenue and taxation; exclude from the calculation of taxable net income certain disaster relief or assistance grant program payments for agricultural losses suffered due to Hurricane Helene

Hurricane Helene devastated Georgia's timber industry and agriculture in late 2024, causing an estimated $1.3 billion in standing timber losses. HB223 responds with several tax measures. It lets local governments in the federally declared disaster area temporarily waive the special ad valorem tax on standing timber (O.C.G.A. § 48-5-7.5) for late 2024 and all of 2025, with a certification process, audits, and state grants to offset local governments' lost revenue, capped at their average timber tax revenue from 2021-2023. The bill also excludes certain federal disaster relief payments and crop insurance proceeds tied to Hurricane Helene from Georgia taxable income for a period of years. It creates a refundable, transferable income tax credit for timber owners' casualty losses, capped at $550 per damaged acre and $200 million total statewide, requiring preapproval and eventual replanting or restoration. Finally, it creates a temporary sales tax exemption for building materials used to repair greenhouses and livestock structures through the end of 2025. The law takes effect once the Governor signs it or it becomes law without signature.

• Lets counties, cities, and school boards in the Hurricane Helene disaster area temporarily waive the timber harvest tax (O.C.G.A. § 48-5-7.5) for late 2024 and all of 2025 for severely damaged timber property.
• Creates a state grant program to reimburse local governments for the tax revenue they lose by granting that timber tax relief, capped at their average 2021-2023 timber tax revenue.
• Excludes certain federal disaster relief grant payments and 2025 federal crop insurance proceeds tied to Hurricane Helene from Georgia taxable income for several tax years.
• Creates a new refundable and one-time-transferable income tax credit worth 100 percent of a timber owner's casualty loss, capped at $550 per damaged acre and $200 million total statewide.
• Requires timber owners to get state preapproval for the credit and to actually restore or replant the timber before claiming it, with credits usable through 2030.
• Creates a temporary sales tax exemption through the end of 2025 for building materials used to repair or replace greenhouses, poultry sheds, and livestock barns.

Timber growers and landowners in the 66 counties covered by the Governor's disaster declaration, county and city governments and school boards that collect timber taxes, farmers who received federal disaster or crop insurance payments, and agricultural producers repairing greenhouses, poultry sheds, or livestock barns.

Timber owners in the affected region would owe less in local timber taxes and could recover a large share of their casualty losses through a refundable credit, while local governments would get state grants to make up lost revenue. Farmers rebuilding damaged structures would also pay less sales tax, and certain disaster payments would not be taxed as income.

• Section 1-3 creates O.C.G.A. § 48-5-33.1, letting eligible local governments waive or refund the timber harvest tax for the final quarter of 2024 and all quarters of 2025 on severely damaged timber property, with a certification and audit process.
• Section 1-3 also creates state grants for local governments to offset lost timber tax revenue, capped at their average 2021-2023 revenue under that tax, contingent on a legislative appropriation.
• Section 2-1 amends O.C.G.A. § 48-7-27 to exclude Hurricane Helene federal disaster relief grant payments (tax years 2025-2029) and 2025 federal crop insurance proceeds from state taxable income.
• Section 2-2 creates O.C.G.A. § 48-7-40.37, a refundable, one-time transferable income tax credit equal to 100 percent of a timber casualty loss, capped at $550 per affected acre and $200 million in aggregate statewide.
• The tax credit requires a preapproval application by December 31, 2025, certification of restoration or replanting, and can be claimed through December 31, 2030, with a ten-year carryforward for unused credits.
• Section 2-3 amends O.C.G.A. § 48-8-3.3 to create a sales and use tax exemption through December 31, 2025 for building materials used to repair or replace greenhouses and livestock or poultry structures.
• Section 3-1 makes the Act effective immediately upon the Governor's signature or upon becoming law without signature.

1. 2025-05-08Effective Date 2025-05-08
2. 2025-05-08Act 70
3. 2025-05-08House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-21House Agreed Senate Amend or Sub (House)
6. 2025-03-18Senate Passed/Adopted By Substitute (Senate)
7. 2025-03-18Senate Third Read (Senate)
8. 2025-03-18Senate Engrossed (Senate)

• James Burchett (R, HD-176)Primary sponsor
• Chuck Efstration (R, HD-104)
• Lauren McDonald (R, HD-026)
• Soo Hong (R, HD-103)
• Matthew Gambill (R, HD-015)
• Will Wade (R, HD-009)
• Russ Goodman (R, SD-008)

1. PassedHouse voteFebruary 18, 2025

   173 yea, 0 nay (2 not voting, 5 absent)

   Passage: House Vote #39

2. PassedSenate voteMarch 18, 2025

   29 yea, 23 nay (1 not voting, 3 absent)

   Motion To Engross: Hb 90, Hb 223, Hr 32: Senate Vote #236

3. PassedSenate voteMarch 18, 2025

   50 yea, 1 nay (1 not voting, 4 absent)

   Passage By Substitute: Senate Vote #238

4. PassedHouse voteMarch 21, 2025

   153 yea, 0 nay (9 not voting, 18 absent)

   Agree To Senate Substitute: House Vote #300

• Hurricane Helene relief
• timber industry taxes
• property tax relief
• agricultural tax credits
• sales tax exemptions