HB276: HB276 Income tax; change certain definitions

This bill adds a new section to Georgia's tax code (O.C.G.A. § 48-7-40.38) creating an income tax credit for businesses that buy and install 'power generators' running on woody biomass, wood residue like land-clearing debris, urban wood waste, and pellets, but not wood from national forests. To qualify, a generator must produce at least 50 megawatts and run at 50 percent capacity or more in the prior year. The credit is worth $500,000 per megawatt of capacity, claimable for up to five years, capped at $200 million per taxpayer and $1.6 billion total statewide, and must be claimed by December 31, 2036, with a ten-year carryforward. The bill also revises existing sales tax exemptions for high-technology companies (O.C.G.A. § 48-8-3(68)) and high-technology data centers (§ 48-8-3(68.1)). Starting in 2029 for companies and 2032 for data centers, those exemptions would be limited mainly to certain barrier-island and tier-1 counties, or to companies and data centers that operate their own 'behind the meter' woody biomass power generators of at least 50 megawatts used at 50 percent capacity.

• Creates a new income tax credit for taxpayers who purchase and install large woody biomass power generators, worth $500,000 per megawatt of capacity for up to five years.
• Caps the credit at $200 million per taxpayer and $1.6 billion in total credits statewide, with claims allowed only through December 31, 2036.
• Allows unused credits to be carried forward up to ten years and to be transferred or sold once to a single other Georgia taxpayer, under reporting requirements to the state revenue commissioner.
• Requires taxpayers claiming the credit to reimburse the Department of Revenue for department-initiated audits related to the credit, up to the value of the credit claimed.
• Narrows an existing sales tax exemption for high-technology companies (O.C.G.A. § 48-8-3(68)) after 2029 to specific counties or to companies running qualifying on-site woody biomass generators.
• Extends a similar limitation to the sales tax exemption for high-technology data centers (§ 48-8-3(68.1)) after 2032, tying continued eligibility to location or to on-site biomass power generation.

Companies that build or operate large wood-fueled power generators, especially those tied to high-technology manufacturers and data centers seeking sales tax exemptions, would be directly affected. The Georgia Department of Revenue would administer certification, audits, and recapture of credits, and taxpayers who buy or sell transferred credits would face new reporting duties.

The bill would give a substantial new tax break, potentially worth hundreds of millions of dollars, to companies investing in large woody biomass power plants, while narrowing sales tax breaks for high-tech companies and data centers unless they meet new location or on-site power generation conditions after 2029 and 2032.

• Section 1 adds O.C.G.A. § 48-7-40.38, defining 'power generator' as equipment using woody biomass with at least 50 megawatts of capacity used at 50 percent capacity in the prior year.
• Section 1 sets the credit at $500,000 per megawatt for up to five taxable years, capped at $200 million per taxpayer and $1.6 billion statewide, claimable through December 31, 2036.
• Section 1 allows a one-time transfer or sale of unused credits to another Georgia taxpayer, with 30-day written notice to the commissioner and disallowance for noncompliance.
• Section 1 requires taxpayers claiming the credit to reimburse the Department of Revenue for department-initiated audits tied to the credit.
• Section 2 revises O.C.G.A. § 48-8-3(68) to limit the high-technology company sales tax exemption after January 1, 2029 to specified counties or companies using qualifying behind-the-meter biomass generators.
• Section 2 revises § 48-8-3(68.1) to apply a similar location or on-site biomass generation limitation to the high-technology data center exemption starting January 1, 2032.
• Section 3 repeals conflicting laws.

1. 2026-03-06House Committee Favorably Reported By Substitute (House)
2. 2025-02-10House Second Readers (House)
3. 2025-02-06House First Readers (House)
4. 2025-02-05House Hopper (House)

• James Burchett (R, HD-176)Primary sponsor
• Bruce Williamson (R, HD-112)
• Vance Smith (R, HD-138)
• Trey Kelley (R, HD-016)
• Shaw Blackmon (R, HD-146)
• Clint Crowe (R, HD-118)

• income tax credits
• biomass energy
• sales tax exemptions
• data centers
• high-technology industry