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House · Passed · 2025-2026 Regular Session

HB 134: Sales and use tax; manufactured homes; revise and expand exemption

Last action July 1, 2026 · Effective Date

House Bill 134, the "Keep Georgia Forested Act," would create new state income tax credits for forestry manufacturers in Georgia, expanding existing job-creation and investment tax credit programs to cover wood-based manufacturing businesses.

Read the full bill text

These buttons carry the bill's own text, not the summaries below. Copy for LLM, View as markdown, and Send to AI use the Markdown version: the text as filed, then the summaries under a heading that names them as ours. View raw is the text alone.

The summaries below were written by an AI model (claude-sonnet-5) from the text of the bill and are not part of it. Quote the text, not the summary. The stored text is the Enrolled version, the latest the General Assembly's website lists.

In plain language

Georgia already gives income tax credits to manufacturers that create jobs or invest in facilities, with the credit amount depending on how economically distressed the county is (tiers 1 through 4). This bill adds a new category, "forestry manufacturing," defined as businesses that use wood fiber, forest biomass, wood residuals, or forestry by-products from Georgia-grown timber as a main ingredient to make forest products, renewable fuels, bio-based chemicals, or other value-added goods. Forestry manufacturers would qualify for the same job-creation credits as other manufacturers, plus new, larger investment tax credits (up to 15 percent in tier 1 counties) for taxable years 2026 through 2030. Businesses could also sell or transfer unused credits to other Georgia taxpayers under specific reporting rules. Total credits for forestry manufacturers statewide are capped at $250 million, with a $100 million sub-cap for tier 3 and 4 counties, and any future changes need a two-thirds vote in both chambers. The law would take effect July 1, 2026, applying to tax years starting on or after January 1, 2026.

What the bill does

  • Adds "forestry manufacturing" as a qualifying business category across five existing Georgia income tax credit programs (O.C.G.A. §§ 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, 48-7-40.4).
  • Defines a forestry manufacturer as a business certified by the state revenue commissioner and the State Forestry Commission that uses Georgia-grown wood fiber or forest by-products as its main raw material.
  • Creates new investment tax credits for forestry manufacturing facilities ranging from 3 percent to 15 percent of qualified investment cost depending on county tier, for tax years 2026 through 2030.
  • Allows forestry manufacturers to sell or transfer unused tax credits to other Georgia taxpayers once per year, with mandatory written notice to the Department of Revenue.
  • Caps total forestry manufacturing tax credits statewide at $250 million, with a separate $100 million limit for tier 3 and tier 4 counties.
  • Requires a two-thirds vote of both the House and Senate to renew or extend these credits after they expire.

Who it affects

Businesses that manufacture forest products, renewable fuels, or bio-based chemicals from Georgia timber and wood residue would gain new tax benefits. The Georgia Department of Revenue and the State Forestry Commission would jointly certify eligible companies, and other Georgia taxpayers could buy transferred credits from these manufacturers.

Why it matters

Forestry manufacturers in Georgia could reduce their state income tax bills significantly through new job and investment credits, potentially encouraging new wood-based manufacturing facilities, especially in lower-income tier 3 and 4 counties, while capping the total cost to the state at $250 million through 2030.

Key provisions

  • Section 2 adds forestry manufacturing to the definition of "business enterprise" under O.C.G.A. § 48-7-40 and defines the term based on use of domestic wood fiber or forest by-products.
  • Section 2 also allows forestry manufacturers to earn the same $500 per new job credit as other existing business enterprises for jobs created from 2026 through 2030.
  • Sections 3 through 6 extend forestry manufacturing eligibility to related tax credit statutes for tier 1 through tier 4 counties, with investment credit rates from 3 percent up to 15 percent.
  • Each amended section adds a credit transfer mechanism letting forestry manufacturers sell unused credits to other Georgia taxpayers, subject to a 30-day notice requirement to the Department of Revenue.
  • Section 7 creates new Code Section 48-7-40.4A, capping aggregate forestry manufacturer credits at $250 million statewide and $100 million for tier 3 and 4 counties, and requiring a two-thirds legislative vote to renew the program.
  • Section 8 sets the effective date as July 1, 2026, applying to taxable years beginning on or after January 1, 2026.
  • The credit transfer provisions in each section are set to automatically repeal on December 31, 2030, though transfers of credits earned before that date remain valid afterward.

From the bill

“'Forestry manufacturing' or 'forestry manufacturer' means any business with an establishment in this state that is certified by the state revenue commissioner in consultation with the director of the State Forestry Commission as an establishment that utilizes wood fiber, forest-derived biomass, wood residuals, or forestry by-products, from domestically sourced virgin timber, as a primary feedstock”

This is the bill's core definition determining which businesses qualify for the new tax credits.

“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.”

Sets the overall statewide dollar limit on these new forestry manufacturing tax credits.

“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”

Requires a supermajority legislative vote to extend the credits beyond their scheduled expiration.

Discussed in meetings (6)

The House and Senate meetings that took this bill up, from their machine transcripts. Each account was written by Georgia Commons with AI and is not part of the record; the video is what was said.

  1. Senate Finance Committee, February 9, 2026

    From 1:14:49 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The sponsor presented a substitute replacing the existing language of HB 134 with the same income-tax proposal just approved in SB 476, including higher standard deductions, a rate reduction and changes to tax breaks. The sponsor said using a House bill would address the House's position that tax-cut legislation must originate there and demonstrate cooperation between the chambers. The sponsor also argued that income-tax relief and local property-tax relief need not be competing choices. A member moved to approve the substitute, and the committee approved it 9-3.

  2. Senate Rules Committee, February 11, 2026

    From 0:10:02 · Watch on the General Assembly's Vimeo channel

    Summary by Georgia Commons: The chair asked the committee chair who had handled the bills to cover HB 134 and HB 463. That committee chair described them as duplicates of the two Senate measures and confirmed that HB 134 corresponded to SB 476, which the chair had described as an incremental income tax reduction. No separate explanation of its provisions was given. The committee unanimously approved placing all four bills on the next day's floor calendar.

  3. Senate floor session, February 12, 2026 (legislative day 18)

    From 1:17:40 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Third Read)

    Summary by Georgia Commons: The majority leader initially included the bill in a request to block floor amendments, then removed it after explaining that the House had already done so the previous year. During later consideration, the clerk read its original manufactured-home sales-tax exemption language and a Finance Committee replacement addressing income taxes. The presenting senator said the committee had replaced the original provisions with SB 476, after consulting the House sponsor. The senator said this addressed the House's position that revenue bills must originate there, without conceding that the requirement applied to tax cuts. A minority member objected to changing a bill already protected from amendments. The presiding chair ruled that House bills could be changed in committee but not amended on the Senate floor once protected. No substantive questions followed. The Senate adopted the committee replacement without objection and passed the bill 31 to 17.

  4. House floor session, March 31, 2026 (legislative day 39, part 2)

    From 3:16:02 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (House Agreed Senate Amend or Sub As Amended)

    Summary by Georgia Commons: The presenter explained that the bill now carried forestry tax credit language previously considered by the House, rather than its earlier subject. The presenter said an additional House amendment narrowed the definition of forestry manufacturing so that only businesses using domestic timber could qualify, protecting the program's integrity. One member confirmed that the vote concerned the Senate substitute as amended by the House and that the content was forestry-related. Another confirmed the amendment document number. The House adopted the amendment without objection and agreed to the amended Senate substitute, 156 to 5.

  5. Senate floor session, March 31, 2026 (legislative day 39, part 2)

    From 4:40:08 · Watch on the General Assembly's Vimeo channel · Confirmed by the bill's status history (Senate Agreed House Amend or Sub)

    Summary by Georgia Commons: The presenter asked senators to accept House language providing investment and job tax credits for forestry manufacturing. The presenter said an earlier forestry proposal allowed up to $250 million in credits annually, prompting concerns about its fiscal impact. The new version would cap credits at $250 million total over a five-year period, narrow eligible manufacturers to those using domestic timber, and limit eligible industry classifications. A supporting senator said the credits would benefit rural communities, including loggers, truck drivers, parts businesses and local tax bases. The Senate agreed to the House amendment to the Senate substitute, 50 to 0.

Status timeline

  1. 2026-07-01Effective Date
  2. 2026-05-06Act 427
  3. 2026-05-06House Date Signed by Governor (House)
  4. 2026-04-10House Sent to Governor (House)
  5. 2026-03-31Senate Agreed House Amend or Sub (Senate)
  6. 2026-03-31House Agreed Senate Amend or Sub As Amended (House)
  7. 2026-02-12Senate Passed/Adopted By Substitute (Senate)
  8. 2026-02-12Senate Third Read (Senate)
Show full history (22 actions)
  1. 2026-02-10Senate Committee Favorably Reported By Substitute (Senate)
  2. 2026-01-12Senate Recommitted (Senate)
  3. 2026-01-12Senate Taken from Table (Senate)
  4. 2025-04-02Senate Tabled (Senate)
  5. 2025-04-02Senate Engrossed (Senate)
  6. 2025-03-21Senate Read Second Time (Senate)
  7. 2025-03-20Senate Committee Favorably Reported (Senate)
  8. 2025-02-27Senate Read and Referred (Senate)
  9. 2025-02-26House Passed/Adopted By Substitute (House)
  10. 2025-02-26House Third Readers (House)
  11. 2025-02-19House Committee Favorably Reported By Substitute (House)
  12. 2025-01-29House Second Readers (House)
  13. 2025-01-28House First Readers (House)
  14. 2025-01-27House Hopper (House)

Sponsors

  • Beth Camp (R, HD-135)Primary sponsor
  • Rick Jasperse (R, HD-11)
  • James Burchett (R, HD-176)
  • John Corbett (R, HD-174)
  • Noel Williams, Jr. (R, HD-148)
  • David Jenkins (R, HD-136)
  • Blake Tillery (R, SD-19)

Votes

  1. PassedHouse voteFebruary 26, 2025

    160 yea, 0 nay (4 not voting, 16 excused)

    PASSAGE: House Vote #91

  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 voteFebruary 12, 2026

    31 yea, 17 nay (2 not voting, 4 excused)

    PASSAGE BY SUBSTITUTE: Senate Vote #544

  4. PassedHouse voteMarch 31, 2026

    156 yea, 5 nay (8 not voting, 7 excused)

    Agree to Senate Sub as Am: House Vote #813

  5. PassedSenate voteMarch 31, 2026

    50 yea, 0 nay (1 not voting, 3 excused)

    AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE: Senate Vote #923

Topics

  • tax credits
  • forestry industry
  • economic development
  • manufacturing incentives
  • state income tax

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Machine-readable https://georgiacommons.org/bills/2025-2026/hb134.md · https://georgiacommons.org/bills/index.md · MCP https://mcp.georgiacommons.org/mcp