HB 223: Revenue and taxation; exclude from the calculation of taxable net income certain disaster relief or assistance grant program payments for agricultural losses suffered due to Hurricane Helene

Hurricane Helene destroyed an estimated $1.3 billion in standing timber in southwest Georgia and damaged farms across the state. This bill responds with several tax changes. It lets county, city, and school board governments temporarily waive the timber harvest tax (O.C.G.A. § 48-5-7.5) for late 2024 and all of 2025 on timber severely damaged by the storm, with the state reimbursing local governments for lost revenue through capped grants. It also excludes federal disaster relief grant payments and crop insurance proceeds tied to Hurricane Helene losses from state taxable income for a period of years. The bill creates a new refundable, transferable income tax credit for timber owners who suffered casualty losses from the storm, worth up to $550 per damaged acre and capped at $200 million statewide, available if the owner restores or replants the timber. It also creates a temporary sales tax exemption, through the end of 2025, for building materials used to repair or replace storm-damaged greenhouses and livestock or poultry structures. The law would take effect as soon as the Governor signs it.

• Lets local governments in Hurricane Helene disaster counties temporarily waive the timber harvest tax for late 2024 and all of 2025 on severely damaged timberland.
• Creates a state grant program reimbursing those local governments for lost timber tax revenue, capped at their average 2021-2023 timber tax collections.
• Excludes Hurricane Helene related federal disaster relief grant payments and 2025 federal crop insurance proceeds from Georgia taxable income.
• Creates a new refundable, one-time transferable income tax credit for timber casualty losses from Hurricane Helene, capped at $550 per acre and $200 million total statewide.
• Creates a temporary sales tax exemption (through December 31, 2025) for building materials used to repair or replace storm-damaged greenhouses and livestock or poultry structures.

Timber growers and landowners in the 66-county disaster area, county and municipal governments and school boards that levy the timber tax, the State Forestry Commission, the Georgia Department of Revenue, farmers rebuilding greenhouses or animal housing, and taxpayers who received federal disaster aid or crop insurance for Hurricane Helene losses.

Timber owners facing years-long losses from destroyed forests could avoid a harvest tax bill, get state-backed grants replacing that lost local revenue, and claim a large tax credit to help pay for salvage and replanting, while farmers rebuilding damaged structures would temporarily pay less in sales tax on materials.

• Section 1-3 adds Code Section 48-5-33.1, letting eligible governing authorities waive or refund the timber harvest tax on severely damaged eligible timber property for the final quarter of 2024 and each quarter of 2025.
• Section 1-3 requires a certification form from the State Forestry Commission and allows state audits of taxpayers claiming the relief, with recapture of improperly claimed relief.
• Section 1-3 authorizes state grants to local governments to offset lost timber tax revenue, capped at their average 2021-2023 collections and excluded from equalized adjusted property tax digest calculations for school funding.
• Section 2-1 excludes from state taxable income (tax years 2025-2029) Hurricane Helene disaster relief grant payments, and (tax year 2025 only) federal crop insurance proceeds for Helene crop losses.
• Section 2-2 adds Code Section 48-7-40.37 creating a refundable, transferable timber casualty loss tax credit worth up to $550 per affected acre, capped at $200 million statewide, requiring preapproval by the Department of Revenue and restoration or replanting to claim.
• Section 2-2 allows one-time transfer or sale of unused credits to a single other Georgia taxpayer, with disclosure and compliance requirements enforced by the commissioner.
• Section 2-3 amends Code Section 48-8-3.3 to add a temporary sales and use tax exemption, through December 31, 2025, for building materials repairing or replacing greenhouses and animal production structures.
• Section 3-1 makes the Act effective immediately upon the Governor's signature or its becoming law without signature.

1. 2025-05-08Effective Date
2. 2025-05-08Act 70
3. 2025-05-08House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-21House Agreed Senate Amend or Sub (House)
6. 2025-03-18Senate Passed/Adopted By Substitute (Senate)
7. 2025-03-18Senate Third Read (Senate)
8. 2025-03-18Senate Engrossed (Senate)

• James Burchett (R, HD-176)Primary sponsor
• Chuck Efstration (R, HD-104)
• Lauren McDonald III (R, HD-26)
• Soo Hong (R, HD-103)
• Matthew Gambill (R, HD-15)
• Will Wade (R, HD-9)
• Russ Goodman (R, SD-8)

1. PassedHouse voteFebruary 18, 2025

   173 yea, 0 nay (2 not voting, 5 excused)

   PASSAGE: House Vote #39

2. PassedSenate voteMarch 18, 2025

   29 yea, 23 nay (1 not voting, 3 excused)

   MOTION TO ENGROSS: HB 90, HB 223, HR 32: Senate Vote #236

3. PassedSenate voteMarch 18, 2025

   50 yea, 1 nay (1 not voting, 4 excused)

   PASSAGE BY SUBSTITUTE: Senate Vote #238

4. PassedHouse voteMarch 21, 2025

   153 yea, 0 nay (9 not voting, 18 excused)

   Agree to Senate Substitute: House Vote #300

• Hurricane Helene relief
• timber industry taxes
• property tax relief
• agricultural disaster aid
• sales tax exemptions