HB 129: Ad valorem tax; bona fide conservation use property; remove a limitation on leased property as to certain entities

Georgia gives lower property tax assessments to land used for farming, timber, or other conservation purposes, but current law disqualifies land from that break if it is leased to someone who wouldn't otherwise qualify for it. This bill carves out an exception: certain Georgia-registered businesses, such as partnerships, corporations, or LLCs owned only by individual citizens, can still lease conservation-use land and keep the tax break, as long as the business mainly produces agricultural goods or timber and gets at least 80 percent of its income from conservation uses in Georgia, or as long as at least one member owns 25 percent or more of the leased property and would independently qualify. The bill also renews Georgia's tax credit for film and TV postproduction companies (editing, sound, visual effects work), which had expired after 2022. It restarts the credit for tax years 2026 through 2030, capped at $10 million a year, with unused amounts rolling into future years. The changes take effect once signed by the Governor and apply to tax years starting on or after January 1, 2026.

• Creates an exception letting qualifying Georgia-registered businesses (partnerships, corporations, LLCs) lease conservation-use land without losing the property's preferential tax assessment.
• Requires such businesses to be owned only by individual citizens, primarily produce farm goods or timber, and earn 80 percent or more of income from conservation uses in Georgia.
• Allows leased property to still qualify if at least one business member owns 25 percent or more of it and would independently qualify for the tax break.
• Renews the postproduction tax credit (O.C.G.A. § 48-7-40.26A), which had lapsed after 2022, for tax years 2026 through 2030 with a $10 million annual cap.
• Requires the Department of Revenue to keep reporting annually to legislative committees on postproduction companies claiming the credit.
• Sets the effective date as the date the Governor signs the bill, applying to tax years beginning on or after January 1, 2026.

Farmers, timber companies, and family-owned agricultural businesses that lease conservation-use land; county tax assessors who administer the conservation-use assessment program; and film and television postproduction companies in Georgia that claim state tax credits for editing, sound, and visual effects work.

Landowners who lease conservation-use property to qualifying family-run farming or timber businesses would keep a lower property tax bill instead of losing it under the old leasing rule. Postproduction companies would again be able to claim state tax credits, potentially affecting where film-related editing and effects work is done in Georgia.

• Section 1 amends O.C.G.A. § 48-5-7.4(b)(4) to add an exception allowing leases to qualifying entities without disqualifying the property from conservation-use assessment.
• The exception requires the leasing entity to be owned only by natural or naturalized citizens and to derive 80 percent or more of its income from bona fide conservation uses in Georgia.
• Alternatively, the exception applies if at least one member of the leasing entity owns 25 percent or more of the property and would qualify for the assessment on their own.
• Section 2 amends O.C.G.A. § 48-7-40.26A(d) to reinstate the postproduction tax credit for tax years 2026 through 2030 with a $10 million annual cap, unused amounts rolling forward.
• Section 2 also updates subsection (f) reporting requirements, extending the Department of Revenue's annual reporting to legislative committees through 2030.
• Section 3 sets the effective date as the date of gubernatorial approval, applicable to tax years beginning on or after January 1, 2026.

1. 2025-05-14Effective Date
2. 2025-05-14Act 251
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-10House Sent to Governor (House)
5. 2025-04-02House Agreed Senate Amend or Sub (House)
6. 2025-04-02Senate Passed/Adopted By Substitute (Senate)
7. 2025-04-02Senate Third Read (Senate)
8. 2025-04-02Senate Engrossed (Senate)

• Chas Cannon (R, HD-172)Primary sponsor
• James Burchett (R, HD-176)
• Robert Dickey (R, HD-134)
• John Corbett (R, HD-174)
• David Huddleston (R, HD-72)
• Jaclyn Ford (R, HD-170)
• Sam Watson (R, SD-11)

1. PassedHouse voteMarch 4, 2025

   165 yea, 7 nay (6 not voting, 2 excused)

   PASSAGE: House Vote #156

2. PassedSenate voteApril 2, 2025

   31 yea, 24 nay (0 not voting, 1 excused)

   MOTION TO ENGROSS: SB 214, HB 66, HB 79, HB 129, HB 134, HB 141, HB 370, HB 397, HB 445, HB 463, HB 532, HB 586, HB 652: Senate Vote #383

3. PassedSenate voteApril 2, 2025

   44 yea, 9 nay (2 not voting, 1 excused)

   PASSAGE BY SUBSTITUTE: Senate Vote #387

4. PassedHouse voteApril 2, 2025

   149 yea, 13 nay (4 not voting, 14 excused)

   Agree to Senate Substitute: House Vote #398

• property taxes
• conservation use assessment
• agricultural land
• film tax credits
• postproduction industry