---
title: HB 1148. Income tax; donation of real property for conservation purposes; revise tax credits
collection: bills
id: 2025-2026/hb1148
cite_as: HB 1148, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb1148
md_url: https://georgiacommons.org/bills/2025-2026/hb1148.md
text_url: https://georgiacommons.org/bills/2025-2026/hb1148/text
source_url: https://www.legis.ga.gov/legislation/72709
date: 2026-03-06
status: engrossed
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 493
omitted_url: https://georgiacommons.org/bills/2025-2026/hb1148.md?full=1
bill_number: HB 1148
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2026-03-04
last_action: Senate Read and Referred
sponsors:
- Charles Cannon
- Robert Dickey
- John Corbett
- Trey Rhodes
- Steven Meeks
- Debbie Buckner
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB1148/2025
upstream_id: 2104405
summaries_model: claude-sonnet-5
topic_tags:
- conservation tax credits
- land donations
- property conservation
- income tax law
- Department of Natural Resources
---
# HB 1148. Income tax; donation of real property for conservation purposes; revise tax credits
## Text
House Bill 1148 (COMMITTEE SUBSTITUTE)
By: Representatives Cannon of the 172nd, Dickey of the 134th, Corbett of the 174th, Rhodes
of the 124th, Meeks of the 178th, and others
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 income tax imposition, rate, computation, exemptions, and credits, so as to revise
tax credits for donation of real property for conservation purposes; to revise required filings;
to repeal provisions regarding the State Properties Commission; to revise the aggregate
amount of tax credits allowed; to extend the date for acceptance of new applications; to
repeal penalty provisions; to repeal a definition; to provide for related matters; to provide for
an effective date; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income tax imposition, rate, computation, exemptions, and credits, is amended by revising
Code Section 48-7-29.12, relating to tax credits for donation of real property for conservation
purposes, as follows:
"48-7-29.12.
(a) As used in this Code section, the term:
(1) 'Conservation easement' means a nonpossessory interest in real property imposing
limitations or affirmative obligations, the purposes of which are consistent with at least
two conservation purposes.
(2) 'Conservation purpose' means any of the following:
(A) Water quality protection for wetlands, rivers, streams, or lakes;
(B) Protection of wildlife habitat consistent with state wildlife conservation policies;
(C) Protection of outdoor recreation consistent with state outdoor recreation policies;
(D) Protection of prime agricultural or forestry lands; and
(E) Protection of cultural sites, heritage corridors, or archeological and historic
resources.
(3) 'Donated property' means the real property of which a qualified donation is made
pursuant to this Code section.
(4) 'Eligible donor' means any person who owns an interest in a qualified donation.
(5) 'Fair market value' means the value of the donated property as determined pursuant
to subsections (c.1) (d) and (c.2) (e) of this Code section.
(6) 'Qualified donation' means the fee simple conveyance to the state; a county, a
municipality, or a consolidated government of this state; the federal government; or a
bona fide charitable nonprofit organization qualified under the Internal Revenue Code
and, beginning on January 1, 2014, accredited by the Land Trust Accreditation
Commission of 100 percent of all right, title, and interest in the entire parcel of donated
real property, and the donation is accepted by such state, county, municipality,
consolidated government, federal government, or bona fide charitable nonprofit
organization for use in a manner consistent with at least two conservation purposes. Such
term shall also include the donation to and acceptance by the state; a county, a
municipality, or a consolidated government of this state; the federal government; or a
bona fide charitable nonprofit organization qualified under the Internal Revenue Code
and, beginning on January 1, 2014, accredited by the Land Trust Accreditation
Commission of a conservation easement. Any real property which is otherwise required
to be dedicated pursuant to local government regulations or ordinances or to increase
building density levels shall not be eligible as a qualified donation under this Code
section. Any real property which is used for or associated with the playing of golf or is
planned to be so used or associated shall not be eligible as a qualified donation under this
Code section.
(7) 'Related person' has the meaning provided by shall have the same meaning as set
forth in Code Section 48-7-28.3.
(8) 'Substantial valuation misstatement' means a valuation such that the claimed value
of any property on the appraisal as submitted to the State Properties Commission
Department of Natural Resources is 150 percent or more of the amount determined to be
the correct amount of such valuation pursuant to subsections (c.1) and (c.2) of this Code
section by the Department of Natural Resources.
(b)(1) A taxpayer shall be allowed a state income tax credit against the tax imposed by
Code Section 48-7-20 or 48-7-21 for each qualified donation under this Code section.
(2) Except as otherwise provided in paragraph (3) of this subsection and in
subsection (d) (f) of this Code section, such credit shall be limited to an amount not to
exceed the lesser of $500,000.00, 25 percent $1 million, 50 percent of the fair market
value of the donated real property as fair market value is established for the year in which
the donation occurred, or 25 50 percent of the difference between the fair market value
and the amount paid to the donor if the donation is effected by a sale of property for less
than fair market value as established for the year in which the donation occurred.
(3) Except as otherwise provided in subsection (d) (f) of this Code section, in the case
of a taxpayer whose net income is determined under Code Section 48-7-23, the aggregate
total credit allowed to all partners in a partnership shall be limited to an amount not to
exceed the lesser of $500,000.00, 25 percent $1 million, 50 percent of the fair market
value of the donated real property as fair market value is established for the year in which
the donation occurred, or 25 50 percent of the difference between the fair market value
and the amount paid to the donor if the donation is effected by a sale of property for less
than fair market value as established for the year in which the donation occurred.
(c) No tax credit shall be allowed under this Code section unless the taxpayer files with
the taxpayer's income tax return a copy of the State Property Commission's determination
and a copy of a certification issued by the Department of Natural Resources that the
donated property is suitable for conservation purposes and meets the following additional
requirements, where applicable:
(1) Subdivision is prohibited for a donated property of less than 500 acres and limited
to one subdivision for a donated property of 500 acres or more;
(2) New construction on donated property of structures, roads, impoundments, ditches,
dumping, or any other activity that would harm the protected conservation values of such
donation is prohibited on such property;
(3) New construction on donated property within 150 feet of any perennial or
intermittent stream is prohibited;
(4) A buffer of at least 100 feet on each side of any perennial streams on donated
property which ensures at least 75 percent tree canopy evenly distributed after harvest is
maintained and a buffer of at least 50 feet on each side of any intermittent streams on
donated property which ensures at least 75 percent tree canopy evenly distributed after
harvest is maintained;
(5) Timber and agricultural activities undertaken on the donated property are prohibited
unless in accordance with best management practices published by the State Forestry
Commission or the Soil and Water Conservation Commission, as the case may be;
(6) New construction on donated property causing more than 1 percent of such property's
total surface area to be covered by impervious surfaces is prohibited;
(7) Mining on the property is prohibited; and
(8) Planting on the donated property of non-native invasive species listed in Category 1,
Category 1 Alert, or Category 2 of the 'List of Non-Native Invasive Plants in Georgia'
developed by the Georgia Exotic Pest Council is prohibited.
(c.1)(d) For each application for certification, the Department of Natural Resources shall
require submission of an appraisal of the qualified donation by the taxpayer along with a
nonrefundable $5,000.00 application fee; provided, however, that the nonrefundable
application fee for property donated to the state shall be 1 percent of the total value of the
donation, unless such donation is being made to qualify the state for a federal or state grant.
The appraisal required by this subsection shall be a full narrative appraisal and include:
(1) A certification page, as established by the Uniform Standards of Professional
Appraisal Practice, signed by the appraiser; and
(2) An affidavit signed by the appraiser which includes a statement specifying:
(A) The value of the unencumbered property, the total value of the qualified donation
in gross, and an accompanying statement identifying the methods used to determine
such values;
(B) Whether a subdivision analysis was used in the appraisal;
(C) Whether the landowner or related persons own any other property, the value of
which is increased as a result of the donation; and
(D) That the appraiser is certified pursuant to Chapter 39A of Title 43.
Appraisals received by the Department of Natural Resources shall be reviewed by the
Department of Natural Resources to determine whether the appraisal contains a substantial
valuation misstatement. If the Department of Natural Resources determines that an
appraisal contains a substantial valuation misstatement, the Department of Natural
Resources shall report the appraiser who prepared the appraisal to the Georgia Real Estate
Commission for investigation and, if warranted, disciplinary action forwarded to the State
Properties Commission for review. The State Properties Commission shall approve the
appraisal amount submitted or recommend a lower amount based on its review and inform
the Department of Natural Resources of its determination. The State Properties
Commission shall be authorized to promulgate any rules and regulations necessary to
administer the provisions of this subsection. Any appraisal deemed to contain a substantial
valuation misstatement shall be submitted to the Georgia Real Estate Commission for
further investigation and disciplinary action. Upon receipt of the State Properties
Commission's determination, the Department of Natural Resources may proceed with the
certification process.
(c.2)(e) The Board of Natural Resources shall promulgate any rules and regulations
necessary to implement and administer subsections (c) and (c.1) (d) of this Code section.
A final determination by the Department of Natural Resources or the State Properties
Commission shall be subject to review and appeal under Chapter 13 of Title 50, the
'Georgia Administrative Procedure Act.'
(d)(f)(1) In no event shall the total amount of any tax credit under this Code section for
a taxable year exceed the taxpayer's income tax liability. In no event shall the total
amount of the tax credit allowed to a taxpayer under subsection (b) of this Code section
exceed $250,000.00 $500,000.00 with respect to tax liability determined under Code
Section 48-7-20 or $500,000.00 $1 million with respect to tax liability determined under
Code Section 48-7-21. Any unused tax credit shall be allowed to be carried forward to
apply to the taxpayer's succeeding five years' tax liability. However, the amount in
excess of such annual dollar limits shall not be eligible for carryover to the taxpayer's
succeeding years' tax liability nor shall such excess amount be claimed by or reallocated
to any other taxpayer. No such tax credit shall be allowed the taxpayer against prior
years' tax liability.
(2) Only one qualified donation may be made with respect to any real property that was,
in the five years prior to donation, within the same tax parcel of record, except that a
subsequent donation may be made by a person who is not a related person with respect
to any prior eligible donors of any portion of such tax parcel.
(3)(A) Beginning on January 1, 2016, and ending on December 31, 2021, the aggregate
amount of tax credits allowed under this Code section shall not exceed $30 million per
calendar year. For the period beginning on June 1, 2022, and ending on December 31,
2026, the aggregate amount of tax credits allowed under this Code section shall not
exceed $4 million per calendar year. For the period beginning on June 1, 2026, and
ending on December 31, 2031, the aggregate amount of tax credits allowed under this
Code section shall not exceed $30 million per calendar year. The Department of
Natural Resources shall accept no new applications for the tax credits allowed under
this Code section after December 31, 2026 2031.
(B) Prior to any renewal of the exemption for donations of real property beyond the
date authorized by subparagraph (A) of this paragraph, the Department of Natural
Resources shall provide a report to the Governor, the President of the Senate, the
Speaker of the House of Representatives, and the chairpersons of the House Committee
on Ways and Means and the Senate Finance Committee on the activity of the program
occurring during the preceding years. The report shall include, but not be limited to:
(i) The number of applications and the total number of acres donated;
(ii) The value of the qualified donations accepted into the program and which two of
the five conservation purposes contained in paragraph (2) of subsection (a) of this
Code section were the basis for the qualification of the property;
(iii) The aggregate amount of income tax credits granted pursuant to this Code
section; and
(iv) A listing of the direct and indirect benefits to the state due to the donation of land
for conservation purposes.
(d.1)(g) Any tax credits under this Code section earned by a taxpayer in the taxable years
beginning on or after January 1, 2013, and previously claimed but not used by such
taxpayer against such taxpayer's income tax may be transferred or sold in whole or in part
by such taxpayer to another Georgia taxpayer, subject to the following conditions:
(1) The transferor 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;
(2) The transferor 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 transferor's tax credit balance prior to transfer, the
remaining balance after transfer, all tax identification numbers for each transferee, the
date of transfer, the amount transferred, and any other information required by the
department;
(3) Failure to comply with this subsection shall result in the disallowance of the tax
credit until the taxpayer is in full compliance;
(4) Any unused credit may be carried forward to subsequent taxable years provided that
the transfer or sale of this tax credit does not extend the time in which such tax credit can
be used. The carry-forward period for tax credit that is transferred or sold shall begin on
the date on which the tax credit was originally earned; and
(5) A transferee shall have only such rights to claim and use the tax credit that were
available to the transferor at the time of the transfer. To the extent that such transferor
did not have rights to claim and 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.
(e)(1) Whenever:
(A) Any person prepares an appraisal of the value of property and knows, or
reasonably should have known, that the appraisal would be used in connection with a
return or a claim for refund claiming a tax credit under this Code section; and
(B) The claimed value of the property on such appraisal as submitted to the State
Properties Commission results in a substantial valuation misstatement with respect to
such property for purposes of claiming a tax credit under this Code section,
then such person shall pay a penalty in the amount determined under paragraph (2) of this
subsection.
(2) The amount of the penalty imposed under paragraph (1) of this subsection on any
person with respect to an appraisal shall be equal to the lesser of:
(A) The greater of:
(i) Twenty-five percent of the difference between the amount of the tax credit
claimed on the taxpayer's return or claim for refund and the amount of the tax credit
to which the taxpayer is actually entitled, to the extent the difference is attributable
to the misstatement described in paragraph (1) of this subsection; or
(ii) Ten thousand dollars; or
(B) One hundred twenty-five percent of the gross income received by the person
described in paragraph (1) of this subsection for the preparation of the appraisal.
(3) No penalty shall be imposed under paragraph (1) of this subsection if the person
establishes to the satisfaction of the commissioner that the value established in the
appraisal was more likely than not the proper value.
(4) Except as otherwise provided, the penalty provided by this subsection shall be in
addition to any other penalties provided by law. The amount of any penalty under this
subsection shall be assessed within three years after the return or claim for refund with
respect to which the penalty is assessed was filed, and no proceeding in court without
assessment for the collection of such penalty shall be begun after the expiration of such
period. Any claim for refund of an overpayment of the penalty assessed under this
subsection shall be filed within three years from the time the penalty was paid.
(f)(h) No credit shall be allowed under this Code section with respect to any amount
deducted from taxable net income by the taxpayer as a charitable contribution.
(g)(i) The commissioner shall promulgate any rules and regulations necessary to
implement and administer this Code section."
SECTION 2.
This Act shall become effective upon its approval by the Governor or upon its becoming law
without such approval.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 1148 would increase Georgia's income tax credit for donating land or conservation easements, raise the yearly cap on those credits back to $30 million, and shift review of land appraisals from the State Properties Commission to the Department of Natural Resources.
### Plain-language summary
Georgia currently lets landowners claim an income tax credit for donating real property or conservation easements for conservation purposes, but the program's yearly cap dropped to $4 million after 2021 and is set to stop taking new applications after 2026. This bill raises the per-donation credit cap from $500,000 to $1 million and from 25 percent to 50 percent of the property's fair market value, and raises the yearly per-taxpayer caps from $250,000 to $500,000 (for individual filers) and $500,000 to $1 million (for corporate filers).
The bill also restores the statewide cap on total credits to $30 million per year for 2026 through 2031, and pushes the deadline for new applications from December 31, 2026 to December 31, 2031. It eliminates the State Properties Commission's role in reviewing donation appraisals, giving that job to the Department of Natural Resources, and repeals the specific monetary penalty for appraisers who submit inflated valuations, instead directing the Department of Natural Resources to refer such appraisers to the Georgia Real Estate Commission for possible discipline. The law would take effect as soon as the Governor signs it.
### What it does
- Raises the maximum tax credit per conservation donation from $500,000 to $1 million and from 25 percent to 50 percent of the property's fair market value.
- Raises the annual per-taxpayer credit caps from $250,000 to $500,000 for individual income tax filers and from $500,000 to $1 million for corporate filers.
- Restores the total statewide cap on these tax credits to $30 million per year for 2026 through 2031, up from the $4 million yearly cap that applied through 2026.
- Extends the deadline for new applications for this tax credit from December 31, 2026 to December 31, 2031.
- Removes the State Properties Commission from the appraisal review process and gives the Department of Natural Resources authority to review appraisals for inflated valuations.
- Repeals the specific dollar penalty for appraisers who submit inflated valuations and instead has the Department of Natural Resources refer them to the Georgia Real Estate Commission for possible discipline.
### Who it affects
Landowners who donate real property or conservation easements to the state, local governments, the federal government, or accredited land trusts for conservation purposes; appraisers who value donated conservation land; the Department of Natural Resources, which takes over appraisal review; and the State Properties Commission, whose role in this program is eliminated.
### Why it matters
Landowners considering a conservation donation could receive a substantially larger tax credit and more years to apply, while the state's total yearly cost for these credits could rise back to $30 million. Appraisers who overvalue donated land would now face professional licensing referral rather than a specific financial penalty.
### Key provisions
- Section 1 amends O.C.G.A. ยง 48-7-29.12 to raise the per-donation credit limit from the lesser of $500,000 or 25 percent of fair market value to the lesser of $1 million or 50 percent of fair market value.
- Raises the annual per-taxpayer caps under subsection (f) from $250,000 to $500,000 (individual tax liability) and from $500,000 to $1 million (corporate tax liability), with unused credit still carrying forward up to five years.
- Extends the aggregate statewide credit cap of $30 million per year to the period June 1, 2026 through December 31, 2031, and moves the application cutoff date from December 31, 2026 to December 31, 2031.
- Removes references to the State Properties Commission throughout the code section, shifting appraisal review and rulemaking authority to the Department of Natural Resources and the Board of Natural Resources.
- Repeals the detailed penalty formula for appraisers who submit substantially misstated valuations, replacing it with a requirement that the Department of Natural Resources report such appraisers to the Georgia Real Estate Commission for investigation and possible discipline.
- Section 2 makes the Act effective immediately upon the Governor's signature or upon becoming law without the Governor's signature.
## Status
- Status: Engrossed (2026-03-04)
- Last action: Senate Read and Referred (2026-03-06)
- Sponsors: Charles Cannon, Robert Dickey, John Corbett, Trey Rhodes, Steven Meeks, Debbie Buckner
- Official page: https://www.legis.ga.gov/legislation/72709
> The history, votes, and amendments (493 characters) are at https://georgiacommons.org/bills/2025-2026/hb1148.md?full=1