Georgia General Assembly · Full text

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

Enrolled version, the latest LegiScan holds · Last action May 6, 2026 · Passed

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House Bill 134 (AS PASSED HOUSE AND SENATE)

By: Representatives Camp of the 135th, Jasperse of the 11th, Burchett of the 176th, Corbett of the 174th, Williams of the 148th, 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 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, forestry manufacturing, 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. 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." "(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 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 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." "(2) Existing business enterprises and, for taxable years beginning on or after January 1, 2026, and prior to January 1, 2031, forestry manufacturers 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 and forestry manufacturers that increase employment by five or more shall be eligible for the credit. In tier 2 counties, only those existing business enterprises and forestry manufacturers that increase employment by ten or more shall be eligible for the credit. In tier 3 counties, only those existing business enterprises and forestry manufacturers that increase employment by 15 or more shall be eligible for the credit. In tier 4 counties, only those existing business enterprises and forestry manufacturers 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."

"(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

(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."

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, forestry manufacturing, 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. ~~For purposes of this Code section, the term 'establishment'~~

(2.1) '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 will be eligible for the tax credit provided by this Code section.

(2.2) 'Forestry manufacturing' 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 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.

(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." "(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:

(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

(2) Failure to comply with this subsection shall result in disallowance of the tax credit until the forestry manufacturer is in full compliance.

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:

"(0.5) 'Forestry manufacturing' 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 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."

"(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.

(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

(2) Failure to comply with this subsection shall result in disallowance of the tax credit until the forestry manufacturer is in full compliance.

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:

"(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.

(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

(2) Failure to comply with this subsection shall result in disallowance of the tax credit until the forestry manufacturer is in full compliance.

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: "(0.5) 'Forestry manufacturing' 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 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."

"(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.

(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 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."

(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

(2) Failure to comply with this subsection shall result in disallowance of the tax credit until the forestry manufacturer is in full compliance.

SECTION 7.

Said article is further amended by adding a new Code section to read as follows:

"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.

(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.

(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.

(d) The department may promulgate such regulations as necessary and advisable for the administration of Code Sections 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4."

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.