The Senate Committee on Finance offered the following
substitute to HB 1085:
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,
relating to imposition, rate, computation, exemptions, and credits relative to income taxes,
so as to provide for various tax credits for forestry manufacturing facilities; to provide for
transfer of tax credits and conditions; to provide for reporting; to provide for aggregate
maximum amounts of tax credits; to require approval of future amendments by a two-thirds'
vote of each chamber of the General Assembly; to provide for effective dates and automatic
repeals; to provide for definitions; to provide for a short title; to provide for related matters;
to provide for an effective date and applicability; to repeal conflicting laws; and for other
purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Keep Georgia Forested Act."
SECTION 2.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended
in Code Section 48-7-40, relating to designation of counties as less developed areas and tax
credits for certain business enterprises, by revising paragraph (2) of subsection (a) and adding
new paragraphs, revising paragraph (2) of subsection (e), and adding a new subsection to
read as follows:
"(2) 'Business enterprise' means any business or the headquarters of any such business
which is engaged in manufacturing, including, but not limited to, the manufacturing of
alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric
vehicle enterprises, warehousing and distribution, processing, telecommunications,
broadcasting, tourism, research and development industries, biomedical manufacturing,
<ins>forestry manufacturing,</ins> and services for the elderly and persons with disabilities. Such
term shall not include retail businesses. Businesses are eligible for the tax credit provided
by this Code section at an individual establishment of the business based on the
classification of the individual establishment under the North American Industry
Classification System. <del>For purposes of this Code section, the term 'establishment' means
an economic unit at a single physical location where business is conducted or where
services or industrial operations are performed. If more than one business activity is
conducted at the establishment, then only those jobs engaged in the qualifying activity
will be eligible for the tax credit provided by this Code section."
</del> <ins>"(3.1) 'Establishment' means an economic unit at a single physical location where
business is conducted or where services or industrial operations are performed. If more
than one business activity is conducted at the establishment, then only those jobs engaged
in the qualifying activity shall be eligible for the tax credit provided by this Code
section."
"(4.1) 'Forestry manufacturing' or 'forestry manufacturer' means any business or the
headquarters of such business with an establishment in this state:
(A) Classified under 2022 North American Industry Classification System Subsectors
321, wood product manufacturing; 322, paper manufacturing or North American
</ins>
<ins>Industrial Classification industry code 33711, wood kitchen cabinet and countertop
manufacturing or specific code 221117, biomass electric power generation 325193,
ethyl alcohol manufacturing; 325194, cyclic crude, intermediate, and gum and wood
chemical manufacturing; 325199, all other basic organic chemical manufacturing;
337211, wood office furniture manufacturing; and 337212, custom architectural
woodwork and millwork manufacturing; or
(B) That utilizes wood fiber, forest-derived biomass, wood residuals, or forestry
by-products as a primary feedstock in the manufacture of forest products, renewable
fuels, bio-based chemicals, bioenergy, or other value-added products that support or
derive economic value from the forest products supply chain, regardless of the
establishment's primary North American Industry Classification System code."
</ins> "(2) Existing business enterprises <ins>and, for taxable years beginning on or after January 1,
2026, and prior to January 1, 2031, forestry manufacturers</ins> shall be allowed an additional
tax credit for taxes imposed under this article equal to $500.00 per eligible new full-time
employee job the first year in which the new full-time employee job is created. The
additional credit shall be claimed in the first taxable year in which the new full-time
employee job is created. The number of new full-time employee jobs shall be determined
by comparing the monthly average number of full-time employees subject to Georgia
income tax withholding for the taxable year with the corresponding period of the prior
taxable year. In tier 1 counties, those existing business enterprises <ins>and forestry
manufacturers</ins> that increase employment by five or more shall be eligible for the credit.
In tier 2 counties, only those existing business enterprises <ins>and forestry manufacturers</ins> that
increase employment by ten or more shall be eligible for the credit. In tier 3 counties,
only those existing business enterprises <ins>and forestry manufacturers</ins> that increase
employment by 15 or more shall be eligible for the credit. In tier 4 counties, only those
existing business enterprises <ins>and forestry manufacturers</ins> that increase employment by 25
or more shall be eligible for the credit. The average wage of the new jobs created must
be above the average wage of the county that has the lowest average wage of any county
in the state to qualify as reported in the most recently available annual issue of the
Georgia Employment and Wages Averages Report of the Department of Labor. To
qualify for a credit under this paragraph, the employer must make health insurance
coverage available to the employee filling the new full-time job; provided, however, that
nothing in this paragraph shall be construed to require the employer to pay for all or any
part of health insurance coverage for such an employee in order to claim the credit
provided for in this paragraph if such employer does not pay for all or any part of health
insurance coverage for other employees. Credit shall not be allowed during a year if the
net employment increase falls below the number required in such tier. Any credit
generated and utilized for years prior to the year in which the net employment increase
falls below the number required in such tier shall not be affected. The state revenue
commissioner shall adjust the credit allowed each year for net new employment
fluctuations above the minimum level of the number required in such tier. This
paragraph shall apply only to new eligible full-time jobs created in taxable years
beginning on or after January 1, 2006, and ending no later than taxable years beginning
prior to January 1, 2011."
<ins>"(n)(1) Any credits earned under this Code section by a forestry manufacturer for taxable
years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and
previously claimed but not used by such forestry manufacturer against its income tax or
as credit against quarterly or monthly payment under Code Section 48-7-103 as provided
within this Code section, and in addition to the assignability provisions of Code
Section 48-7-42, may be transferred or sold in whole or in part by such forestry
manufacturer to another Georgia taxpayer, subject to the following conditions:
(A) Such forestry manufacturer may make only a single transfer or sale of tax credits
earned in a taxable year; however, the transfer or sale may involve one or more
transferees; and
</ins>
<ins>(B) Such forestry manufacturer shall submit to the department a written notification
of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax
credits. The notification shall include such forestry manufacturer's tax credit balance
prior to the transfer, the remaining balance after transfer, all tax identification numbers
for each transferee, the date of the transfer, the amount transferred, and any other
information required by the department.
(2) Failure to comply with this subsection shall result in disallowance of the tax credit
until the forestry manufacturer is in full compliance.
(3) The transfer or sale of this tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date in which the tax credit was originally earned.
(4) A transferee shall have only such rights to claim and use the tax credit as were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim or use the tax credit at the time of the transfer, the department
shall either disallow the tax credit claimed by the transferee or recapture the tax credit
from the transferee. The transferee's recourse is against the transferor.
(5) The department shall prepare an annual report of the total amount of credits
transferred by forestry manufacturers pursuant to this Code section for the prior year.
The report required under this paragraph shall be completed no later than December 31
of each year and presented to each member of the House Committee on Ways and Means
and the Senate Finance Committee.
(6) This subsection shall stand repealed by operation of law on the last moment of
December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall
not impair or affect a forestry manufacturer's ability to transfer an unused credit after
January 1, 2031, that such taxpayer accrued pursuant to this Code section for taxable
years before December 31, 2030."
</ins>
SECTION 3.
Said article is further is amended in Code Section 48-7-40.1, relating to tax credits for
business enterprises in less developed areas, by revising subsection (a) and adding a new
subsection to read as follows:
"(a) As used in this Code section, the term:
(1) 'Broadcasting' means the transmission or licensing of audio, video, text, or other
programming content to the general public, subscribers, or to third parties via radio,
television, cable, satellite, or the internet or IP and includes motion picture and sound
recording, editing, production, postproduction, and distribution. Such term is limited to
establishments classified under the 2007 North American Industry Classification System
Codes 515, broadcasting; 519, internet publishing and broadcasting; 517,
telecommunications; and 512, motion picture and sound recording industries.
(2) 'Business enterprise' means any business or the headquarters of any such business
which is engaged in manufacturing, including, but not limited to, the manufacturing of
alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric
vehicle enterprises, warehousing and distribution, processing, telecommunications,
broadcasting, tourism, biomedical manufacturing, <ins>forestry manufacturing,</ins> and research
and development industries. Such term shall not include retail businesses. Businesses
are eligible for the tax credit provided by this Code section at an individual establishment
of the business based on the classification of the individual establishment under the North
American Industry Classification System. <del>For purposes of this Code section, the term
'establishment'
</del> <ins>(2.1) 'Establishment'</ins> means an economic unit at a single physical location where
business is conducted or where services or industrial operations are performed. If more
than one business activity is conducted at the establishment, then only those jobs engaged
in the qualifying activity will be eligible for the tax credit provided by this Code section.
<ins>(2.2) 'Forestry manufacturing' means any business or the headquarters of such business
with an establishment in this state:
(A) Classified under 2022 North American Industry Classification System
Subsectors 321, wood product manufacturing; 322, paper manufacturing or North
American Industrial Classification industry code 33711, wood kitchen cabinet and
countertop manufacturing or specific code 221117, biomass electric power
generation 325193, ethyl alcohol manufacturing; 325194, cyclic crude, intermediate,
and gum and wood chemical manufacturing; 325199, all other basic organic chemical
manufacturing; 337211, wood office furniture manufacturing; and 337212, custom
architectural woodwork and millwork manufacturing; or
(B) That utilizes wood fiber, forest-derived biomass, wood residuals, or forestry
by-products as a primary feedstock in the manufacture of forest products, renewable
fuels, bio-based chemicals, bioenergy, or other value-added products that support or
derive economic value from the forest products supply chain, regardless of the
establishment's primary North American Industry Classification System code.
</ins> (3) 'New full-time employee job' means a newly created position of employment that was
not previously located in this state, requires a minimum of 35 hours a week, and pays at
or above the average wage earned in the county with the lowest average wage earned in
this state, as reported in the most recently available annual issue of the Georgia
Employment and Wages Averages Report of the Department of Labor."
<ins>"(l)(1) Any credits earned under this Code section by a forestry manufacturer for taxable
years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and
previously claimed but not used by such forestry manufacturer against its income tax or
as credit against quarterly or monthly payment under Code Section 48-7-103 as provided
within this Code section, and in addition to the assignability provisions of Code
Section 48-7-42, may be transferred or sold in whole or in part by such forestry
manufacturer to another Georgia taxpayer, subject to the following conditions:
</ins>
<ins>(A) Such forestry manufacturer may make only a single transfer or sale of tax credits
earned in a taxable year; however, the transfer or sale may involve one or more
transferees; and
(B) Such forestry manufacturer shall submit to the department a written notification
of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax
credits. The notification shall include such forestry manufacturer's tax credit balance
prior to the transfer, the remaining balance after transfer, all tax identification numbers
for each transferee, the date of the transfer, the amount transferred, and any other
information required by the department.
(2) Failure to comply with this subsection shall result in disallowance of the tax credit
until the forestry manufacturer is in full compliance.
(3) The transfer or sale of this tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date in which the tax credit was originally earned.
(4) A transferee shall have only such rights to claim and use the tax credit as were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim or use the tax credit at the time of the transfer, the department
shall either disallow the tax credit claimed by the transferee or recapture the tax credit
from the transferee. The transferee's recourse is against the transferor.
(5) The department shall prepare an annual report of the total amount of credits
transferred by forestry manufacturers pursuant to this Code section for the prior year.
The report required under this paragraph shall be completed no later than December 31
of each year and presented to each member of the House Committee on Ways and Means
and the Senate Finance Committee.
(6) This subsection shall stand repealed by operation of law on the last moment of
December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall
not impair or affect a forestry manufacturer's ability to transfer an unused credit after
</ins>
<ins>January 1, 2031, that such taxpayer accrued pursuant to this Code section for taxable
years before December 31, 2030."
</ins> SECTION 4.
Said article is further amended in Code Section 48-7-40.2, relating to tax credits for existing
manufacturing and telecommunications facilities in tier 1 counties, by adding a new
paragraph to subsection (a), revising subsection (b), and adding a new subsection to read as
follows:
<ins>"(0.5) 'Forestry manufacturing' means any business or the headquarters of such business
with an establishment in this state:
(A) Classified under 2022 North American Industry Classification System
Subsectors 321, wood product manufacturing; 322, paper manufacturing or North
American Industrial Classification industry code 33711, wood kitchen cabinet and
countertop manufacturing or specific code 221117, biomass electric power
generation 325193, ethyl alcohol manufacturing; 325194, cyclic crude, intermediate,
and gum and wood chemical manufacturing; 325199, all other basic organic chemical
manufacturing; 337211, wood office furniture manufacturing; and 337212, custom
architectural woodwork and millwork manufacturing; or
(B) That utilizes wood fiber, forest-derived biomass, wood residuals, or forestry
by-products as a primary feedstock in the manufacture of forest products, renewable
fuels, bio-based chemicals, bioenergy, or other value-added products that support or
derive economic value from the forest products supply chain, regardless of the
establishment's primary North American Industry Classification System code."
</ins> "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three
years an existing manufacturing or telecommunications facility or a manufacturing or
telecommunications support facility in this state in a tier 1 county designated pursuant to
Code Section 48-7-40, there shall be allowed a credit against the tax imposed under this
article in an amount equal to 5 percent of the cost of all qualified investment property
purchased or acquired by the taxpayer in such year, subject to the conditions and
limitations set forth in this Code section. In the event such qualified investment property
purchased or acquired by the taxpayer in such year consists of recycling machinery or
equipment, a recycling manufacturing facility, pollution control or prevention machinery
or equipment, a pollution control or prevention facility, or the conversion from defense
to domestic production, the amount of such credit shall be equal to 8 percent.
<ins>(2) In the case of a taxpayer which operates a forestry manufacturing facility in this state
in a tier 1 county designated pursuant to Code Section 48-7-40, there shall be allowed a
credit against the tax imposed under this article for taxable years beginning on or after
January 1, 2026, and prior to January 1, 2031, in an amount equal to 15 percent of the
cost of all qualified investment property purchased or acquired by the taxpayer in such
year, subject to the conditions and limitations set forth in this Code section."
"(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable
years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and
previously claimed but not used by such forestry manufacturer against its income tax or
as credit against quarterly or monthly payment under Code Section 48-7-103 as provided
within this Code section, and in addition to the assignability provisions of Code
Section 48-7-42, may be transferred or sold in whole or in part by such forestry
manufacturer to another Georgia taxpayer, subject to the following conditions:
(A) Such forestry manufacturer may make only a single transfer or sale of tax credits
earned in a taxable year; however, the transfer or sale may involve one or more
transferees; and
(B) Such forestry manufacturer shall submit to the department a written notification
of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax
credits. The notification shall include such forestry manufacturer's tax credit balance
prior to the transfer, the remaining balance after transfer, all tax identification numbers
</ins>
<ins>for each transferee, the date of the transfer, the amount transferred, and any other
information required by the department.
(2) Failure to comply with this subsection shall result in disallowance of the tax credit
until the forestry manufacturer is in full compliance.
(3) The transfer or sale of this tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date in which the tax credit was originally earned.
(4) A transferee shall have only such rights to claim and use the tax credit as were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim or use the tax credit at the time of the transfer, the department
shall either disallow the tax credit claimed by the transferee or recapture the tax credit
from the transferee. The transferee's recourse is against the transferor.
(5) The department shall prepare an annual report of the total amount of credits
transferred by forestry manufacturers pursuant to this Code section for the prior year.
The report required under this paragraph shall be completed no later than December 31
of each year and presented to each member of the House Committee on Ways and Means
and the Senate Finance Committee.
(6) This subsection shall stand repealed by operation of law on the last moment of
December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall
not impair or affect a forestry manufacturer's ability to transfer an unused credit after
January 1, 2031, that such taxpayer accrued pursuant to this Code section for taxable
years before December 31, 2030."
</ins> SECTION 5.
Said article is further is amended in Code Section 48-7-40.3, relating to tax credits for
existing manufacturing and telecommunications facilities in tier 2 counties, by adding a new
paragraph to subsection (a), revising subsection (b), and adding a new subsection to read as
follows:
<ins>"(0.5) 'Forestry manufacturing' means any business or the headquarters of such business
with an establishment in this state:
(A) Classified under 2022 North American Industry Classification System
Subsectors 321, wood product manufacturing; 322, paper manufacturing or North
American Industrial Classification industry code 33711, wood kitchen cabinet and
countertop manufacturing or specific code 221117, biomass electric power
generation 325193, ethyl alcohol manufacturing; 325194, cyclic crude, intermediate,
and gum and wood chemical manufacturing; 325199, all other basic organic chemical
manufacturing; 337211, wood office furniture manufacturing; and 337212, custom
architectural woodwork and millwork manufacturing; or
(B) That utilizes wood fiber, forest-derived biomass, wood residuals, or forestry
by-products as a primary feedstock in the manufacture of forest products, renewable
fuels, bio-based chemicals, bioenergy, or other value-added products that support or
derive economic value from the forest products supply chain, regardless of the
establishment's primary North American Industry Classification System code."
</ins> "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three
years an existing manufacturing or telecommunications facility or manufacturing or
telecommunications support facility in this state in a tier 2 county designated pursuant to
Code Section 48-7-40, there shall be allowed a credit against the tax imposed under this
article in an amount equal to 3 percent of the cost of all qualified investment property
purchased or acquired by the taxpayer in such year, subject to the conditions and
limitations set forth in this Code section. In the event such qualified investment property
purchased or acquired by the taxpayer in such year consists of recycling machinery or
equipment, a recycling manufacturing facility, pollution control or prevention machinery
or equipment, a pollution control or prevention facility, or the conversion from defense
to domestic production, the amount of such credit shall be equal to 5 percent.
<ins>(2) In the case of a taxpayer which has operated a forestry manufacturing facility in this
state in a tier 2 county designated pursuant to Code Section 48-7-40, there shall be
allowed a credit against the tax imposed under this article in an amount equal
to 10 percent of the cost of all qualified investment property purchased or acquired by the
taxpayer in such year, subject to the conditions and limitations set forth in this Code
section."
"(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable
years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and
previously claimed but not used by such forestry manufacturer against its income tax or
as credit against quarterly or monthly payment under Code Section 48-7-103 as provided
within this Code section, and in addition to the assignability provisions of Code
Section 48-7-42, may be transferred or sold in whole or in part by such forestry
manufacturer to another Georgia taxpayer, subject to the following conditions:
(A) Such forestry manufacturer may make only a single transfer or sale of tax credits
earned in a taxable year; however, the transfer or sale may involve one or more
transferees; and
(B) Such forestry manufacturer shall submit to the department a written notification
of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax
credits. The notification shall include such forestry manufacturer's tax credit balance
prior to the transfer, the remaining balance after transfer, all tax identification numbers
for each transferee, the date of the transfer, the amount transferred, and any other
information required by the department.
(2) Failure to comply with this subsection shall result in disallowance of the tax credit
until the forestry manufacturer is in full compliance.
</ins>
<ins>(3) The transfer or sale of this tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date in which the tax credit was originally earned.
(4) A transferee shall have only such rights to claim and use the tax credit as were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim or use the tax credit at the time of the transfer, the department
shall either disallow the tax credit claimed by the transferee or recapture the tax credit
from the transferee. The transferee's recourse is against the transferor.
(5) The department shall prepare an annual report of the total amount of credits
transferred by forestry manufacturers pursuant to this Code section for the prior year.
The report required under this paragraph shall be completed no later than December 31
of each year and presented to each member of the House Committee on Ways and Means
and the Senate Finance Committee.
(6) This subsection shall stand repealed by operation of law on the last moment of
December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall
not impair or affect a forestry manufacturer's ability to transfer an unused credit after
January 1, 2031, that such taxpayer accrued pursuant to this Code section for taxable
years before December 31, 2030."
</ins> SECTION 6.
Said article is further is amended in Code Section 48-7-40.4, relating to tax credits for
existing manufacturing and telecommunications facilities or manufacturing and
telecommunications support facilities in tier 3 or 4 counties, by adding a new paragraph to
subsection (a), revising subsection (b), and adding a new subsection to read as follows:
<ins>"(0.5) 'Forestry manufacturing' means any business or the headquarters of such business
with an establishment in this state:
</ins>
<ins>(A) Classified under 2022 North American Industry Classification System
Subsectors 321, wood product manufacturing; 322, paper manufacturing or North
American Industrial Classification industry code 33711, wood kitchen cabinet and
countertop manufacturing or specific code 221117, biomass electric power
generation 325193, ethyl alcohol manufacturing; 325194, cyclic crude, intermediate,
and gum and wood chemical manufacturing; 325199, all other basic organic chemical
manufacturing; 337211, wood office furniture manufacturing; and 337212, custom
architectural woodwork and millwork manufacturing; or
(B) That utilizes wood fiber, forest-derived biomass, wood residuals, or forestry
by-products as a primary feedstock in the manufacture of forest products, renewable
fuels, bio-based chemicals, bioenergy, or other value-added products that support or
derive economic value from the forest products supply chain, regardless of the
establishment's primary North American Industry Classification System code."
</ins> "(b)(1) In the case of a taxpayer which has operated for the immediately preceding three
years an existing manufacturing or telecommunications facility or manufacturing or
telecommunications support facility in this state in a tier 3 or a tier 4 county designated
pursuant to Code Section 48-7-40, there shall be allowed a credit against the tax imposed
under this article in an amount equal to 1 percent of the cost of all qualified investment
property purchased or acquired by the taxpayer in such year, subject to the conditions and
limitations set forth in this Code section. In the event such qualified investment property
purchased or acquired by the taxpayer in such year consists of recycling machinery or
equipment, a recycling manufacturing facility, pollution control or prevention machinery
or equipment, a pollution control or prevention facility, or the conversion from defense
to domestic production, the amount of such credit shall be equal to 3 percent.
<ins>(2) In the case of a taxpayer which has operated a forestry manufacturer facility in this
state in a tier 3 or a tier 4 county designated pursuant to Code Section 48-7-40, there shall
be allowed a credit against the tax imposed under this article in an amount equal to 3
</ins>
<ins>percent of the cost of all qualified investment property purchased or acquired by the
taxpayer in such year, subject to the conditions and limitations set forth in this Code
section."
"(e)(1) Any credits earned under this Code section by a forestry manufacturer for taxable
years beginning on or after January 1, 2026, and prior to January 1, 2031, and before and
previously claimed but not used by such forestry manufacturer against its income tax or
as credit against quarterly or monthly payment under Code Section 48-7-103 as provided
within this Code section, and in addition to the assignability provisions of Code
Section 48-7-42, may be transferred or sold in whole or in part by such forestry
manufacturer to another Georgia taxpayer, subject to the following conditions:
(A) Such forestry manufacturer may make only a single transfer or sale of tax credits
earned in a taxable year; however, the transfer or sale may involve one or more
transferees; and
(B) Such forestry manufacturer shall submit to the department a written notification
of any transfer or sale of tax credits within 30 days after the transfer or sale of such tax
credits. The notification shall include such forestry manufacturer's tax credit balance
prior to the transfer, the remaining balance after transfer, all tax identification numbers
for each transferee, the date of the transfer, the amount transferred, and any other
information required by the department.
(2) Failure to comply with this subsection shall result in disallowance of the tax credit
until the forestry manufacturer is in full compliance.
(3) The transfer or sale of this tax credit shall not extend the time in which such tax
credit can be used. The carry-forward period for a tax credit that is transferred or sold
shall begin on the date in which the tax credit was originally earned.
(4) A transferee shall have only such rights to claim and use the tax credit as were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim or use the tax credit at the time of the transfer, the department
</ins>
<ins>shall either disallow the tax credit claimed by the transferee or recapture the tax credit
from the transferee. The transferee's recourse is against the transferor.
(5) The department shall prepare an annual report of the total amount of credits
transferred by forestry manufacturers pursuant to this Code section for the prior year.
The report required under this paragraph shall be completed no later than December 31
of each year and presented to each member of the House Committee on Ways and Means
and the Senate Finance Committee.
(6) This subsection shall stand repealed by operation of law on the last moment of
December 31, 2030. The automatic repeal of this subsection on December 31, 2030, shall
not impair or affect a forestry manufacturer's ability to transfer an unused credit after
January 1, 2031, that such taxpayer accrued pursuant to this Code section for taxable
years before December 31, 2030."
</ins> SECTION 7.
Said article is further amended by adding a new Code section to read as follows:
<ins>"48-7-40.4A.
(a) Except as otherwise provided in subsection (b) of this Code section, the aggregate
amount of tax credits allowed to forestry manufacturers pursuant to Code Sections 48-7-40,
48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4 shall not exceed $250 million per year.
(b) The aggregate amount of tax credits allowed to forestry manufacturers in tier 3 and
tier 4 counties pursuant to Code Sections 48-7-40 and 48-7-40.4 shall not exceed $100
million per year.
(c) No renewal or extension of tax credits allowed to forestry manufacturers pursuant to
Code Sections 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4 shall become
effective unless approved by two-thirds of the members elected to each chamber of the
General Assembly in a roll-call vote."
</ins>
SECTION 8.
This Act shall become effective on July 1, 2026, and shall be applicable to taxable years
beginning on or after January 1, 2026.
SECTION 9.
All laws and parts of laws in conflict with this Act are repealed.