---
title: HB 151. Income tax; deduction for casualty losses of timber in an amount based on the diminution of value; provide
collection: bills
id: 2025-2026/hb151
cite_as: HB 151, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb151
md_url: https://georgiacommons.org/bills/2025-2026/hb151.md
text_url: https://georgiacommons.org/bills/2025-2026/hb151/text
source_url: https://www.legis.ga.gov/legislation/69588
date: 2025-01-30
status: introduced
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: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb151.md?full=1
bill_number: HB 151
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-01-28
last_action: House Second Readers
sponsors:
- Martin Momtahan
- Charles Cannon
- Leesa Hagan
- John Corbett
- Angie O'Steen
- Noel Williams
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB151/2025
upstream_id: 1945119
summaries_model: claude-sonnet-5
topic_tags:
- income tax deductions
- timber industry
- casualty losses
- agriculture tax policy
- Georgia Department of Revenue
---
# HB 151. Income tax; deduction for casualty losses of timber in an amount based on the diminution of value; provide
## Text
House Bill 151
By: Representatives Momtahan of the 17th, Cannon of the 172nd, Hagan of the 156th, Corbett
of the 174th, O’Steen of the 169th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to
income taxes, so as to provide for a deduction from Georgia taxable income for casualty
losses of timber in an amount based on the diminution of value; to provide for conditions and
limitations; to provide for an aggregate cap; 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.
Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to income taxes,
is amended in subsection (b) of Code Section 48-7-27, relating to the computation of taxable
net income, by adding a new paragraph to read as follows:
"(17)(A) There shall be subtracted from Georgia taxable income the amount of any
casualty loss for timber claimed on the taxpayer's federal income tax return that is equal
to the fair market value of up to 2,000 acres of timberland after the casualty loss
subtracted from the fair market value of such acres before such loss to the extent such
amount was:
(i) In excess of the cost or other basis reported on such federal income tax return;
(ii) Attributable to property owned by the taxpayer in this state;
(iii) Not claimed as a deduction for any other person with respect to the same
timberland;
(iv) In excess of the total value received directly or indirectly related to such loss,
including insurance payments, tax credits, tax deductions, disaster payments, grants,
and relief funding; and
(v) Not otherwise deducted in determining such taxpayer's taxable income as defined
under the Internal Revenue Code of 1986.
(B) An owner of a Georgia subchapter 'S' corporation, partnership, or limited liability
corporation shall be eligible for the deduction allowed pursuant to this paragraph, but
only at the entity level.
(C) The total amount deducted pursuant to this paragraph shall not exceed $347 million
in aggregate for all returns filed in any calendar year. Amounts deducted pursuant to
this paragraph shall be tracked by the department as tax returns are accepted and
processed. The department shall publish on its public website the current amount
deducted pursuant to this paragraph for the year to date and shall display the remaining
amount that may be deducted pursuant to this paragraph for the year. Any amount
deducted that exceeds the annual limit shall be added back to the Georgia taxable
income of those taxpayers by the department."
SECTION 2.
This Act shall become effective on July 1, 2025, and shall be applicable to all taxable years
beginning on or after January 1, 2025.
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.
A Georgia House bill would let timberland owners deduct casualty losses to their timber from state taxable income, based on how much the land's value dropped, up to a $347 million statewide cap per year.
### Plain-language summary
Under current Georgia tax law, timberland owners who suffer a casualty loss (such as damage from a storm, fire, or disease) can deduct that loss on their federal tax return, but Georgia's state income tax treatment is separate. This bill adds a new deduction to Georgia's income tax code (O.C.G.A. § 48-7-27) for casualty losses of timber, calculated as the drop in fair market value of up to 2,000 acres of timberland before and after the loss.
The deduction only applies to the portion of the loss that exceeds the property's original cost basis, applies only to Georgia property, cannot be claimed twice for the same land, and must be reduced by any insurance payments, tax credits, grants, or other relief already received. Owners of S corporations, partnerships, or LLCs can only claim it at the entity level, not individually. The state caps total deductions statewide at $347 million per year, tracked publicly by the Department of Revenue, and any amount claimed beyond that cap gets added back to taxable income. The law would take effect July 1, 2025, applying to tax years starting on or after January 1, 2025.
### What it does
- Creates a new Georgia income tax deduction for casualty losses of timber, based on the drop in fair market value of the affected timberland.
- Limits the deduction to the value lost on up to 2,000 acres per casualty loss and only to amounts exceeding the property's original cost basis.
- Requires the loss to be reduced by any insurance payouts, tax credits, deductions, disaster payments, grants, or other relief already received for the same loss.
- Restricts owners of S corporations, partnerships, or LLCs to claiming the deduction only at the entity level, not as individuals.
- Caps the total amount that can be deducted statewide at $347 million per calendar year, with the Department of Revenue tracking and publishing the running total.
- Requires any amount claimed above the annual cap to be added back to the taxpayer's Georgia taxable income.
### Who it affects
Timberland owners in Georgia, including individuals and owners of S corporations, partnerships, and limited liability companies who hold timber property that suffers casualty losses such as storm or fire damage. The Georgia Department of Revenue would also be responsible for tracking and publishing deduction totals.
### Why it matters
Timberland owners who lose value in their timber due to storms, disease, or other casualties could reduce their Georgia taxable income by that lost value, potentially lowering their state tax bills. Because the total deduction is capped statewide, if claims are heavy in a bad year, some owners could have deductions reduced or added back once the cap is reached.
### Key provisions
- Section 1 adds paragraph (17) to O.C.G.A. § 48-7-27(b), allowing a subtraction from Georgia taxable income for timber casualty losses based on the fair market value drop on up to 2,000 acres.
- The deduction only covers loss amounts exceeding the taxpayer's cost basis, must relate to Georgia property, cannot be claimed by more than one person for the same land, and must exclude amounts already covered by insurance or other relief.
- S corporation, partnership, and LLC owners may claim the deduction only at the entity level, not individually.
- Sets a $347 million aggregate annual cap on the deduction across all Georgia tax returns, tracked and publicly reported by the Department of Revenue.
- Amounts claimed beyond the annual cap are added back to the taxpayer's Georgia taxable income by the department.
- Section 2 sets the effective date as July 1, 2025, applying to tax years beginning on or after January 1, 2025.
## Status
- Status: Introduced (2025-01-28)
- Last action: House Second Readers (2025-01-30)
- Sponsors: Martin Momtahan, Charles Cannon, Leesa Hagan, John Corbett, Angie O'Steen, Noel Williams
- Official page: https://www.legis.ga.gov/legislation/69588
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb151.md?full=1