---
title: HB 129. Ad valorem tax; bona fide conservation use property; remove a limitation on leased property as to certain entities
collection: bills
id: 2025-2026/hb129
cite_as: HB 129, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb129
md_url: https://georgiacommons.org/bills/2025-2026/hb129.md
text_url: https://georgiacommons.org/bills/2025-2026/hb129/text
source_url: https://www.legis.ga.gov/legislation/69503
date: 2025-05-14
status: passed
corpus_version: bills-2026-08-28
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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index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 1591
omitted_url: https://georgiacommons.org/bills/2025-2026/hb129.md?full=1
bill_number: HB 129
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-05-14
last_action: Effective Date 2025-05-14
sponsors:
  - Charles Cannon
  - James Burchett
  - Robert Dickey
  - John Corbett
  - David Huddleston
  - Jaclyn Ford
  - Sam Watson
text_version: Enrolled
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB129/2025
upstream_id: 1943345
summaries_model: claude-sonnet-5
topic_tags:
  - property taxes
  - conservation use land
  - farming and timber
  - film tax credits
  - agricultural tax breaks
---

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

## Text

25 HB 129/AP
House Bill 129 (AS PASSED HOUSE AND SENATE)
By: Representatives Cannon of the 172nd, Burchett of the 176th, Dickey of the 134th, Corbett
of the 174th, Huddleston of the 72nd, and others
A BILL TO BE ENTITLED
AN ACT
To amend Code Section 48-5-7.4 of the Official Code of Georgia Annotated, relating to1
preferential assessment for bona fide conservation use property and bona fide residential2
transitional property, so as to remove a limitation on leased property as to certain entities; to3
amend Code Section 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax4
credits for postproduction expenditures, so as to renew a tax c redit for postproduction5
expenditures; to provide for related matters; to provide for an effective date and applicability;6
to repeal conflicting laws; and for other purposes.7
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8
SECTION 1.9
Code Section 48-5-7.4 of the Official Code of Georgia Annotated , relating to preferential10
assessment for bona fide conservation use property and bona fid e residential transitional11
property, is amended by revising subsection (b) as follows:12
"(b) Except in the case of the underlying portion of a tract of real property on which is13
actually located a constructed storm-water wetland, the followi ng additional rules shall14
apply to the qualification of conservation use property for current use assessment:15
H. B. 129
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25 HB 129/AP
(1) When one-half or more of the area of a single tract of rea l property is used for a16
qualifying purpose, then such tract shall be considered as used for such qualifying17
purpose unless some other type of business is being operated on the unused portion;18
provided, however, that such unused portion must be minimally managed so that it does19
not contribute significantly to erosion or other environmental or conservation problems.20
The lease of hunting rights or the use of the property for hunt ing purposes shall not21
constitute another type of business. The charging of admission for use of the property for22
fishing purposes shall not constitute another type of business;23
(2)(A)(i) The owner of a tract, lot, or parcel of land totaling less than ten acres shall24
be required by the tax assessor to submit additional relevant records regarding proof25
of bona fide conservation use for qualified property that on or after May 1, 2012, is26
either first made subject to a covenant or is subject to a rene wal of a previous27
covenant. The provisions of this paragraph relating to requiring additional relevant28
records regarding proof of bona fide conservation use shall not apply to such property29
if the owner of the subject property provides one or more of the following:30
(i)(I) Proof that such owner has filed with the Internal Revenue Ser vice a31
Schedule E, reporting farm related income or loss, or a Schedule F, with Form 1040,32
or, if applicable, a Form 4835, pertaining to such property;33
(ii)(II) Proof that such owner has incurred expenses for the qualifying use; or34
(iii)(III) Proof that such owner has generated income from the qualifying use.35
(ii) Prior to a denial of eligibility under this paragraph, the tax assessor shall conduct36
and provide proof of a visual, on-site inspection of the property. Reasonable notice37
shall be provided to the property owner before being allowed a visual, on-site38
inspection of the property by the tax assessor.39
(B) The owner of a tract, lot, or parcel of land totaling ten acres or more shall not be40
required by the tax assessor to submit additional relevant reco rds regarding proof of41
H. B. 129
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25 HB 129/AP
bona fide conservation use for qualified property that on or after May 1, 2012, is either42
first made subject to a covenant or is subject to a renewal of a previous covenant;43
(3) No property shall qualify as bona fide conservation use property if such current use44
assessment would result in any person who has a beneficial inte rest in such property,45
including any interest in the nature of stock ownership, receiv ing in any tax year any46
benefit of current use assessment as to more than 2,000 acres. If any taxpayer has any47
beneficial interest in more than 2,000 acres of tangible real property which is devoted to48
bona fide conservation uses, such taxpayer shall apply for curr ent use assessment only49
as to 2,000 acres of such land;50
(4) No property shall qualify as bona fide conservation use pr operty if it is leased to a51
person or entity which would not be entitled to conservation us e assessment;. This52
paragraph shall not apply to a corporation, a partnership, a general partnership, a limited53
partnership, a limited corporation, or a limited liability comp any registered with the54
Secretary of State that meets the following conditions:55
(A)(i) Its ownership includes only natural or naturalized citizens;56
(ii) It has as its primary purpose the production of agricultu ral products or timber57
from or on the land, including, but not limited to, subsistence farming or commercial58
production; and59
(iii) It derives 80 percent or more of its gross income from b ona fide conservation60
uses, including earnings on investments directly related to pas t or future bona fide61
conservation uses, within this state; or62
(B) At least one of its members has no less than a 25 percent ownership interest in the63
property being leased and would be entitled to conservation use assessment;64
(5) No property shall qualify as bona fide conservation use property if such property is65
at the time of application for current use assessment subject t o a restrictive covenant66
which prohibits the use of the property for the specific purpos e described in67
H. B. 129
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25 HB 129/AP
subparagraph (a)(1)(E) of this Code section for which bona fide conservation use68
qualification is sought; and69
(6) No otherwise qualified property shall be denied current us e assessment on the70
grounds that no soil map is available for the county in which s uch property is located;71
provided, however, that, if no soil map is available for the county in which such property72
is located, the owner making an application for current use assessment shall provide the73
board of tax assessors with a certified soil survey of the subject property unless another74
method for determining the soil type of the subject property is authorized in writing by75
such board."76
SECTION 2.77
Code Section 48-7-40.26A of the Official Code of Georgia Annotated, relating to tax credits78
for postproduction expenditures, is amended by revising subsections (d) and (f) as follows:79
"(d) The tax credits allowed under this Code section for all postproduction companies shall80
be subject to the following aggregate annual caps:81
(1) For taxable years beginning on or after January 1, 2018 2026, and before January 1,82
2019 2031, the aggregate amount of tax credits allowed under this Code section shall not83
exceed $10 million; and84
(2) For taxable years beginning on or after January 1, 2019, and before January 1, 2020,85
the aggregate amount of tax credits allowed under this Code section shall not exceed $1086
million;87
(3) For taxable years beginning on or after January 1, 2020, and before January 1, 2023,88
the aggregate amount of tax credits allowed under this Code section shall not exceed $1089
million per year;90
(4) The tax credits allowed under this Code section shall not be available for taxable91
years beginning on or after January 1, 2023; and92
H. B. 129
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25 HB 129/AP
(5) If the aggregate amount of tax credits claimed by taxpayers under this Code section93
during a year is less than the aggregate annual cap applicable to such year, the unclaimed94
portion of the aggregate annual cap shall be added to the aggregate annual cap applicable95
to the next succeeding year or years until it is fully claimed."96
"(f) For taxable years beginning on or after January 1, 2018 2026, and before January 1,97
2023 2031, the postproduction company shall report to the Department of Revenue on its98
Georgia income tax return the monthly average number of full-time employees subject to99
Georgia income tax withholding for the taxable year. For purposes of this subsection, the100
term 'full-time employee' shall mean a person who performs a job that requires a minimum101
of 35 hours a per week, and pays at or above the average wage earned in the county with102
the lowest average wage earned in this state, as reported in th e most recently available103
annual issue of the Georgia Employment and Wages Averages Report of the Department104
of Labor. Notwithstanding Code Sections 48-2-15, 48-7-60, and 48-7-61, for such taxable105
years, the commissioner shall annually report to the House Committee on Ways and Means106
and the Senate Finance Committee. The report shall include the name, tax year beginning,107
and monthly average number of full-time employees for each post production company. 108
The first report shall be submitted by June 30, 2018, and each year thereafter by June 30."109
SECTION 3.110
This Act shall become effective upon its approval by the Governor or upon its becoming law111
without such approval and shall be applicable to all taxable ye ars beginning on or after112
January 1, 2026.113
SECTION 4.114
All laws and parts of laws in conflict with this Act are repealed.115
H. B. 129
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## 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 129 loosens Georgia's conservation-use property tax break by letting more family-owned farming and timber businesses lease land while keeping the preferential tax assessment, and it renews an expired tax credit for film postproduction companies.

### Plain-language summary

Georgia law gives landowners a lower property tax assessment if their land is used for farming, timber, or other conservation purposes, but current law disqualifies a property if it is leased to someone who wouldn't personally qualify for that break. This bill carves out exceptions to that leasing rule for certain business entities, such as corporations, partnerships, and LLCs, that are owned only by natural citizens, exist mainly to produce farm or timber products, and earn most of their income from conservation-qualifying activities in Georgia. It also allows entities where a member with at least a 25 percent ownership stake would personally qualify for the tax break.
Separately, the bill revives Georgia's tax credit for film and TV postproduction expenditures, which had expired for tax years starting in 2023. It restarts the credit for tax years 2026 through 2030, capping it at $10 million per year, and requires postproduction companies to report employment data to the state. The law would take effect once the Governor signs it and would apply to tax years starting on or after January 1, 2026.

### What it does

- Removes the leasing restriction on the conservation-use property tax break for qualifying family-owned corporations, partnerships, and LLCs engaged mainly in farming or timber production.
- Requires such entities to be owned only by natural or naturalized citizens and to earn at least 80 percent of their income from conservation-qualifying uses in Georgia.
- Allows leased property to still qualify if a member holding at least 25 percent ownership would personally be entitled to the conservation use tax break.
- Renews the film and TV postproduction tax credit (O.C.G.A. § 48-7-40.26A), which had lapsed after 2022, for tax years 2026 through 2030.
- Caps the renewed postproduction tax credit at $10 million per year and requires companies to report full-time employee data to the Department of Revenue.
- Sets the effective date as the date the Governor signs the bill, applying to tax years beginning on or after January 1, 2026.

### Who it affects

Georgia landowners who lease farmland or timberland, especially family-owned corporations, partnerships, and LLCs seeking the conservation use property tax break; county tax assessors who evaluate these applications; and film and television postproduction companies that claim the state's postproduction tax credit.

### Why it matters

Farm and timber businesses organized as corporations or LLCs that lease land could keep a lower property tax bill they previously risked losing under the leasing rule. Postproduction companies would again be eligible for a state tax credit worth up to $10 million a year starting in 2026, after several years without it.

### Key provisions

- Section 1 amends O.C.G.A. § 48-5-7.4(b)(4) to exempt certain qualifying entities from the rule that leasing to a non-qualifying party disqualifies conservation use property.
- The exemption applies to entities owned only by natural citizens whose primary purpose is producing farm or timber products and that earn 80 percent or more of income from bona fide conservation uses in Georgia.
- An alternative exemption applies if at least one member with a 25 percent or greater ownership interest in the leased property would personally qualify for conservation use assessment.
- Section 2 amends O.C.G.A. § 48-7-40.26A to restart the postproduction tax credit for tax years 2026 through 2030 with an annual cap of $10 million.
- Section 2 requires postproduction companies to report monthly average full-time employee counts to the Department of Revenue, with the Commissioner reporting annually to House Ways and Means and Senate Finance Committees.
- Section 3 sets the effective date as approval by the Governor (or becoming law without approval), applying to tax years beginning on or after January 1, 2026.
- Section 4 repeals conflicting laws.

## Status

- Status: Passed (2025-05-14)
- Last action: Effective Date 2025-05-14 (2025-05-14)
- Sponsors: Charles Cannon, James Burchett, Robert Dickey, John Corbett, David Huddleston, Jaclyn Ford, Sam Watson
- Official page: https://www.legis.ga.gov/legislation/69503

> The history, votes, and amendments (1,591 characters) are at https://georgiacommons.org/bills/2025-2026/hb129.md?full=1