Georgia CommonsHouse · Introduced · 2025-2026 Regular Session
HB 276: Income tax; change certain definitions
Last action March 6, 2026 · House Committee Favorably Reported By Substitute
A Georgia House bill would create a new income tax credit for companies that build large wood-fueled power generators, while also reshaping existing sales tax breaks for high-tech companies and data centers to favor those using similar biomass generators.
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 Comm Sub version, the latest the General Assembly's website lists.
In plain language
This bill adds a new state income tax credit (O.C.G.A. § 48-7-40.38) for taxpayers who buy and install a 'power generator' running on woody biomass, such as wood scraps or pellets, with at least 50 megawatts of capacity used at least half the time. The credit equals $500,000 per megawatt of capacity, can be claimed for up to five years, and is capped at $200 million per taxpayer and $1.6 billion total statewide. Unused credits can carry forward ten years but must be claimed by December 31, 2036, and can be sold or transferred once to another Georgia taxpayer under strict reporting rules. The Department of Revenue can recapture credits and requires taxpayers to reimburse audit costs. The bill also changes Georgia's sales tax exemptions for high-technology companies and high-technology data centers (O.C.G.A. § 48-8-3). Starting in 2029, the exemption for high-tech companies would be limited mainly to companies in certain low-population 'tier 1' counties, a specific barrier island county, or companies that use their own woody biomass power generators. A similar limitation would apply to high-technology data centers starting in 2032, extending their exemption through 2037 under the same biomass-generator and location conditions.
What the bill does
- Creates a new state income tax credit for buying, installing, and readying a woody biomass power generator of at least 50 megawatts capacity used at least half the time.
- Sets the credit at $500,000 per megawatt for up to five taxable years, capped at $200 million per taxpayer and $1.6 billion statewide, with claims allowed only through December 31, 2036.
- Allows unused credits to be carried forward for ten years and sold or transferred once to a single other Georgia taxpayer, with mandatory notice to the Department of Revenue.
- Requires taxpayers claiming the credit to reimburse the state for department-initiated audits tied to the credit and lets the commissioner recapture wrongly claimed credits.
- Narrows, starting in 2029, the sales tax exemption for certain high-technology companies to those in specific tier 1 counties, a designated barrier island county, or those using qualifying on-site biomass power generators.
- Extends and similarly limits, starting in 2032, the sales tax exemption for high-technology data centers through 2037 based on location or use of on-site biomass power generators.
Who it affects
Companies that build or operate large wood-fueled electric generators, high-technology manufacturers and data center operators that currently qualify for Georgia sales tax exemptions, county governments in tier 1 or barrier-island areas, and the Georgia Department of Revenue, which will certify, audit, and track these credits and exemptions.
Why it matters
The new tax credit could steer significant private investment toward wood-fueled power plants in Georgia while reducing state tax revenue by up to $1.6 billion over time. The changes to high-tech sales tax exemptions would concentrate future eligibility in certain rural or biomass-using facilities rather than tech companies statewide.
Key provisions
- Section 1 adds new Code Section 48-7-40.38, defining 'power generator,' 'capacity,' and 'woody biomass' and creating the income tax credit and its caps, deadlines, transfer rules, and audit and recapture provisions.
- Section 2 revises O.C.G.A. § 48-8-3, paragraph (68), narrowing the existing 10 percent reduced-tax treatment for high-technology company computer equipment purchases to end December 31, 2028, then further limiting eligibility from 2029 through 2034 to tier 1 counties, a specific barrier island county, or companies using qualifying biomass generators.
- Section 2 also revises paragraph (68.1) governing high-technology data center sales tax exemptions, replacing the automatic repeal on January 1, 2032 with a new limited exemption running through December 31, 2037 tied to the same county and biomass-generator conditions.
- Section 3 repeals any conflicting state laws.
From the bill
“A taxpayer shall be allowed tax credits for expenditures made for the purchase, installation, and readying of a power generator and related components against the tax imposed by Code Section 48-7-20 in an amount of $500,000.00 per megawatt of capacity for a maximum of five taxable years.”
“The aggregate amount of tax credits allowed pursuant to this Code section shall not exceed $1.6 billion.”
“'Woody biomass' means wood residuals that include land-clearing residue, urban wood residue, and pellets and do not include wood from any United States national forest.”
Discussed in meetings (4)
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.
House Ways & Means Committee, March 6, 2026
From 0:39:51 · Watch on the General Assembly's Vimeo channel
Summary by Georgia Commons: The sponsor said the substitute would offer transferable construction tax credits for facilities generating electricity from wood, addressing lost timber markets after mill closures. The sponsor described limits of $200 million per taxpayer and $1.6 billion overall, intended as totals over five years, and estimated eight facilities could use eight million tons of displaced wood annually. The minimum facility size would be 50 megawatts. Asked about utilities, the sponsor said discussions were ongoing, with concerns about cost and data centers generating their own power. Private developers would need power-purchase contracts. The sponsor said closed facilities could qualify for upgrades, potentially reducing costs, and nothing prevented combining federal aid or participation by a taxpaying electric cooperative. The chair asked about data-center exemptions. The sponsor confirmed qualifying locations or use of on-site wood-powered generation could preserve sales-tax exemptions through 2037, alongside construction credits. Another member asked about rural-county incentives; the sponsor identified continuation beyond 2028 as the benefit. Asked about financing, the sponsor estimated an 80-megawatt plant would cost $500 million, combining loans, developer funds and credits. The chair noted the absence of a fiscal note and questioned the wording of credit limits. Possible technical clarification was deferred, with no amendment offered. The committee approved the substitute by voice vote; no count was stated.
House Rules Committee, March 6, 2026
From 1:03:03 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179
Summary by Georgia Commons: A committee member said HB 276 would provide a tax credit for constructing woody biomass energy-producing facilities and had left committee that morning. The chair said the bill would be available later that day. No decision was recorded.
House Rules Committee, March 6, 2026
From 1:26:27 · Watch on the General Assembly's Vimeo channel · Confirmed by the 2026 House Journal, p. 2179
Summary by Georgia Commons: The committee placed HB 276 on the supplemental floor calendar under structured rules. No substantive discussion occurred.
Status timeline
- House Committee Favorably Reported By Substitute (House)
- House Second Readers (House)
- House First Readers (House)
- House Hopper (House)
Sponsors
- James Burchett (R, HD-176)
- Bruce Williamson (R, HD-112)
- Vance Smith (R, HD-138)
- Trey Kelley (R, HD-16)
- Shaw Blackmon (R, HD-146)
- Clint Crowe (R, HD-118)
Topics
- income tax credits
- biomass energy
- data center tax breaks
- high-tech manufacturing incentives
- state tax exemptions