Georgia CommonsHouse Ways & Means Committee, March 6, 2026
2025-2026 Regular Session · 406 CLOB · 58 min
This is a machine transcript of the General Assembly's video, made by a speech-recognition model. It is not an official record and can mishear words, names, and numbers. Speakers are not identified. The video is the record: every timestamp links to the moment it plays.
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Summary
Written by an AI model (gpt-6.1-sol) from the transcript. It is not part of the record, and the video is what was said.
The committee considered and approved a substitute to HB 276. The sponsor described tax credits for wood-burning power facilities as a way to restore markets for Georgia timber after mill closures, along with changes to data-center tax incentives. Members asked about utility participation, reopening closed facilities, eligibility, construction costs and limits on the credits. The chair noted that no fiscal note was available for the new income-tax credit and questioned whether the credit limits were clearly written. No amendments were offered. The substitute passed by voice vote, with no vote count stated.
Bills discussed (1)
Each account covers the stretch of the meeting it names. The bill's number is said in that stretch, unless it was the only bill on a committee's agenda.
HB 276. Income tax; change certain definitions
From 0:39:51 · turns 2 to 74
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.
Transcript
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- 0:38:39
Good morning, everyone. It's, uh, 8:32, and today's gonna be a busy day. There's a lot of important meetings taking place right now, including this one, so I wanna be respectful of any- everyone's time. Uh, Chairman Blackmon, uh, has a prior commitment himself this morning and didn't want to delay the important measure that we have before us today. Uh, so we're gonna go ahead and get started. Uh, as we do that, I'm going to ask, uh, Representative Vance Smith, will you lead us in a prayer, Vance?
- 0:39:15
Yes, sir, Mr. Chairman. Appreciate it. Lord, thank you. Thank you for the time that we can have some good fellowship and do the business of the state of Georgia. Um, people here, you know every heart in this room and in the General Assembly. And lead, guide, and direct us in the things that be your will. Um, take care of our families, our children, and our grandchildren. In Jesus' name we pray, amen.
- 0:39:43
Amen. Amen. All right, we have one measure before us this morning. It's a committee substitute to House Bill 276. For everyone on your iPads or watching, uh, in the audience or at home, we'll be working off of LC443513S, and we have the House Majority Whip Burchett here to present the measure for us. Whip Burchett.
- 0:40:11
Thank you, Mr. Chairman and committee members. Thank you for coming in early this morning, um, to hear this bill. I'm gonna briefly go over the bill and then stand for questions. Um, what the bill... I'll tell you what the bill seeks to do first. Um, as you all are aware, the forestry industry in this state is in crisis. And, um, and speaking to one of my, um, loggers back home, um, just yesterday, uh, he is now making the tough decision. Uh, he's got 75 employees, and he's laying off half of his employees now.
- 0:40:42
It takes him $25,000 a week to be able to make payroll and make his payments, and he's running around, um, 10 to 9, uh, a week. So he is having to lay off a significant amount of his employees, and, um, he is defaulting now on his equipment because, um, he, there, there's, there's nowhere to take this wood. And that's the problem I'm seeking to address here with this bill. Uh, House Bill 276 substitute, um, as chairman, um, spoke to, uh, what it does is two things.
- 0:41:13
One, it ps- it puts in place a, uh, $200 million transferable tax credit for the construction of woody biomass energy pr- uh, producing facility construction. Uh, what that means is that we are incentivizing folks to put in and build, uh, a woody biomass energy structure, uh, by, uh, allowing for this $200 million transferable tax credit. Because the problem with... There's pe- there's people that want to do this. They wanna do it. The problem is that a commercial lender will not take up the risk of construction.
- 0:41:48
And, um, they ask for appropriations in the budget, and, um, that's just something that we can't do. Uh, it is up to $1.6 billion, uh, which would be eight, eight facilities, and that would cover a, um, the eight million tons worth of, uh, wood that we are not hauling anymore because of the closure of the plants. Uh, in my mind, um, this is a measure that, um, does two things. It puts electricity onto the grid, and it stabilizes a, um, a very important industry in the state of Georgia by allowing for, uh, the forestry industry to be able to haul wood and wood, uh, woody biomass materials to a facility, uh, to utilize, uh, to create energy.
- 0:42:35
That is the first section, and that is what that does. The second section is a provision that incentivizes data centers to utilize a woody biomass energy-producing facility behind the meter. Currently, we have incentives in place in the state that, um, financially benefit data centers', um, construction here, uh, particularly when it comes to the purchase of their computer equipment. Well, what this bill does is say that you can continue to avail yourself of that, um, incentive if you put a woody biomass facility behind the meter and use that to offset your power draw.
- 0:43:13
Um, one of the other things is we've designated that, or allowing them to, uh, locate in Tier 1, um, counties, um, or a county that has an island that is, um, owned by DNR and unaccessible by a bridge. And that's what the bill does. And, um, I'll stand for questions, Mr. Chairman.
- 0:43:37
Thank you, Whip Burchett. Uh, do have a couple questions. We're gonna start with Chair Lady Camp.
- 0:43:43
Thank you. Thank you, Mr. Whip, for bringing this. This is a, an intriguing bill for a number of reasons and a great idea to resolve some of the issues we're having in, especially in South Georgia. Um, my question is, have the utilities, meaning Georgia Power, EMCs, MIAGs, been brought in? And has there been a discussion about the integra- integrative resource plan involving the
- 0:44:05
And, well, the introduction of biomass plants in South Georgia? Um, I have had discussions, uh, since about July with the, uh, utility, um, folks. Um, Jamie and I have gone round and round about the biomass issue, and they are supportive of helping. I think there is some trepidation about putting meters behind, um, the, um, um... Excuse me. Putting facilities behind the meter. Uh, one, I don't think they want to discourage, um, data centers. Um, and I also think that, you know, if the data centers are utilizing their own power, then that's less power that, uh, Georgia Power or the utilities would be providing.
- 0:44:43
So the... And, and then there's a cost issue here. Um, so there's been a lot of discussion of, as to whether or not it's affordable, um, to utilize biomass. Now, I can tell you that for, since 1968 or '78, there's been a 100 wa- 100 megawatt facility in Early County that's been operating, uh, and burning biomass, and it's, it's used all over the world, and we have several biomass facilities in this plant. And then there's a, a little bit of, of c- conversation about whether, what the cost associated with, uh, of, uh, burning biomass is for power.
- 0:45:17
And, you know, we've had numbers as high as $220, uh, per megawatt hour and numbers as low as $80 per megawatt hour. Um, and then the folks that I'm talking to that are willing to purchase and, and, and build these, um, facilities are, you know, much lower than that. They're more around, um, uh, seven to eight cents per kilowatt hour. Um, so yes, there's been conversation with these, uh, utilities, and, um, I'm trying to, uh, work with them as best I can.
- 0:45:48
All right. Mr. Chairman, can I have one more question please? Follow-up. Um, all right. So the facilities would not be owned by the utility companies, because right now in our state, the way the model works, the utility companies are owned, or own the generation. Correct. So in this case, they would not own the generation. Correct. And so FIRR laws would require them to purchase all the power that was generated by these facilities at whatever cost is agreed upon. Right. This, this would be a contract. So this is the risk of the, who- whatever private entity that is constructing these.
- 0:46:20
They're gonna have to, to make, uh, have a contract with either Georgia Power or with the EMCs to deliver their power. Gotcha. Thank you so much. Yep.
- 0:46:35
All right. We're gonna go to Representative Smith. Thank you, Mr. Chairman. Uh, would it be possible, um, Mr. Whip, to use some of the facilities that are being closed now in the State of Georgia as far as mills? Absolutely. The tax credit provided in here would allow for the, um, you know, maintenance and/or construction or upgrading of facilities like the Early County facility. In fact, the, the folks that I've talked to are interested in, um, taking that facility off of GP's hands and, um, getting it back up and running.
- 0:47:10
It was shut down in two, uh, '25, and so they are willing to do that now. And you're hitting on a very important, um, point out of all of this, is that the, the CapEx provi- point of all, uh, of the construction of these facilities is what is causing the math to not math. Um, and that's why we're helping out with a transferable tax credit. The CapEx, once they cannot go to a, a commercial, uh, lender and have to go to a third party market, the interest alone cost during, per period of 24 to 36 months of construction, it costs them another $100 million.
- 0:47:44
So preferably, we would go to some of these, um, facilities that are shut down and get them back up and running, um, because it's just power sooner, and it costs less money. Thank you. Thank you, Mr. Chairman. Chairman Williamson.
- 0:48:06
Uh, Chairman Williamson. Chairman Williams, I know you're excited down there, but we got Chairman Williamson first. When you're recognized, you will. Th- thank you, Mr. Chairman, uh, and thank you to the whip for this, this, as we've talked many times, and, uh, nobody's been a, a greater champion for trying to get our forest products industry back up on its feet than you have. You've just been outstanding. Um, uh, you know, I'm, uh, I've just seen this, uh, language for the first time. I'm, I'm for moving forward on anything, but I've, I've got, I need to get my mind around this, my, uh...
- 0:48:42
But tell me about where would... You mentioned Tier 1 counties. Is it only applicable to Tier 1, or, uh- So- Can you direct me to the line? So go to lines 103 through- All right ... uh, 111.
- 0:49:05
Doesn't, doesn't require that they go, um, uh, to Tier 1 or, um... But it does incentivize them to go to Tier 1 counties. All right. What is the extra, uh, incentive for the Tier 1? Is it just the regular Tier 1 job tax credits and investment tax credits, or, or is it anything- The, the Tier 1 designation is for the county, um, the counties, uh, that are Tier 1 counties. So the smaller, more rural counties. As I understand it, Mr- $33,000 tax credit per employee.
- 0:49:35
3,500, uh, in some cases. But, um, um... Well, in some cases, 35. But, but i- and up to five years, so it can be 75. 17,500, or am I m- missing the math on that? Um- Tier 1 counties. Okay. I just need to get my head around this. But so- It was really just- ... it's sort of targeted towards Tier 1, but it's not limited to Tier 1. That's correct. But the Tier 1, is there any extra credits coming via this bill for the, uh, um, biomass plants located in Tier 1, or is it just the fact that they would pick up- If they go into a tier one, they can continue beyond 2028, the tax incentives-
- 0:50:18
That, that is the incentive.
- 0:50:19
Yes.
- 0:50:19
Okay.
- 0:50:19
Yes.
- 0:50:20
Okay. All right. Thank you.
- 0:50:23
And we have a very ... Um, I won't go into that.
- 0:50:28
All right. Chairman Noel Williams has a question.
- 0:50:32
I waive.
- 0:50:32
You waive? All right. Representative Buckner.
- 0:50:36
Thank you, Mr. Chairman. Thank you, Mr. Wipp, for this bill. It's something we really do need in all the timber growing areas of the state for the good of the entire state. I do have two s- questions. One is there is an attempt going on right now to try to, um, put us in line for being available to get some federal assistance to build plants like this. Would this be ... Would they be able to get both, this, this state and the federal and then-
- 0:51:06
There's nothing in my provision that says that they couldn't get both.
- 0:51:09
Okay. There's nothing in the federal, so that would be good 'cause they're very expensive. And I just wanna be real clear in my mind, if a rural EMC is interested in doing this, because they pay state tax, uh, they would be eligible to apply for this and, and do it?
- 0:51:28
Nothing in my bill prevents them from doing it. If, a- any, any, any taxpayer that wants to put together one of these facilities can do that.
- 0:51:37
Thank you. It's a good bill.
- 0:51:41
All right. I have a question or two if it's all right, Mr. Wipp, just so I understand. So a data center that's located in this definition on 103 to 111, and also, uh, starting on line 307 to 313, if you meet that definition, so if you're in that county that's, that, that has a barrier island with no bridge, that, that county, if you're in a tier one county or you're a data center that uses one of these power generators, you will have the sales tax exemption extended through 2037?
- 0:52:29
That's correct.
- 0:52:30
And you would also be able to receive this new income tax credit for the ...
- 0:52:40
The transferable tax credit for construction of the facility.
- 0:52:43
For the facility.
- 0:52:45
My ... The, the, um, the intent was to, uh, allow for both green facilities that are just providing power, but also to provide for, um, uh, construction behind the meter.
- 0:53:00
But the sales tax exemption goes away for any data center that doesn't exist in-
- 0:53:08
Correct
- 0:53:08
... any of the others. Okay. And then let me ask you just one, one final question, I think. Uh, we, on line 32, well, I guess on line 30, we say that no taxpayer shall receive, uh, tax credits in aggregate of 200 million.
- 0:53:26
Yes.
- 0:53:26
Is that per year, or is that for each, uh, or is that for in total of the five years that we're ...
- 0:53:34
The intent is for the total of five years.
- 0:53:38
And is that intent as well on line 33? Because I see that the total amount ... You know, one question we get sometime is what's the fiscal note on this bill? We don't have a fiscal note on this bill for the new income tax credit, but it looks like the aggregate should not exceed 1.6 billion. Is that per year or over a five-year period?
- 0:53:57
Total.
- 0:54:07
Okay. All right. I know we want to get this, this going today, but that, that's, uh ...
- 0:54:12
I'm ... If you need to clarify, I'm, I'll offer them whatever amendment it is you'd like, Mr. Chairman.
- 0:54:17
Okay. All right. Uh, Chairman Williamson has a question.
- 0:54:22
Just while we're thinking through this, uh, you know, 50 megawatts is not insignificant. This, um, you know, uh, 20 such plants would be the equivalent of one reactor at Vogel, correct?
- 0:54:33
Correct.
- 0:54:33
'Cause I think that's about right, about a, a thousand megawatts. So, um, is there any estimate of how many 50 megawatt facilities could be stood up, um?
- 0:54:46
So the intent is to do an 80 watt, megawatt facility, but we didn't wanna limit it to just 80. Uh, so an 80 watt mega- um, 80 watt biomass, 40 biomass facility costs about $500 million. And, um, so the way that we looked at it was you get 200 million from a cur- commercial, um, lender, 100 million from the entity, and 200 million, um, through tax, uh, transferable tax credits. That's the way we, we figured it. And the way we did the, the, you know, the number was we just figured what the, uh, loss of tonnage was, um, and we multi- mo- divided that by how many of these could burn up, excuse me, could compensate for that volume.
- 0:55:33
And so we're thinking eight of these could compensate for the 8 million do- 8 million tons we've lost.
- 0:55:38
So eight separate facilities?
- 0:55:40
Yes, sir.
- 0:55:41
Right.
- 0:55:41
And that, and then, and then any- anything behind the meter, uh, if we, if, if eight facilities were to be built, green facilities, a- and then anything behind the meter for a data center would be, uh, additional tonnage and volume that we'd be able to utilize.
- 0:55:56
And a quick follow-up question, because there are some biomass facilities behind the meter operating today in Georgia. Isn't that correct? Or-
- 0:56:05
There are-
- 0:56:05
... has there been?
- 0:56:06
I don't know the answer to that.
- 0:56:07
Okay.
- 0:56:08
I, I don't know the answer to that.
- 0:56:09
But is ... In our current s- uh, regulatory structure, it is legal for that to happen al- already, isn't it?
- 0:56:18
If they have power behind the meter? Yeah. D- is it legal for somebody to burn biomass and generate electricity behind the meter right now? Oh, it is definitely legal to burn biomass, yes. Yes. Okay. I'm just trying to understand what the current regulatory environment is on that issue just standing alone. Thank you.
- 0:56:38
All right. Representative Smith. Mr. Chair. Thank you, Mr. Chairman. Uh, it, is it a minimum of 80 megawatts? Is that gonna be a minimum that they have to produce? Minimum of 50 megawatt facility. Uh, so they can go up to 150 if they want, uh- But the minimum's 50? Yes. Yes, sir. Okay. All right. Thank you.
- 0:57:02
All right, everyone. Have we taken all the questions? Uh- Chairman Williamson, I was gonna s- uh, I just, it came to my mind, currently, I think that the preferred method behind the meter for data centers is, um, is, um, natural gas, um, because of the cost associated with it. All right. No f- no further questions. What's the pleasure of the committee? Make a note. We got a motion to pass and a second. Uh, any discussion or amendments?
- 0:57:33
Mr. Chair, do you want ... I think let's, I don't wanna rush it. I know this is important for you. I, I know, I, I see anything that would need to be done as a potential just technical change if it's even needed to be made. I think we get clarity from legal counsel on that. But as we move forward, we could possibly just clean it up later if we had to. Uh, and I'm not sure we need to. But, uh, so no amendments, uh, at this time. Um, no further discussion. Uh, we are now gonna take the vote on the House Committee Substitute to House Bill 276 LC443513S.
- 0:58:06
All those in favor, make it be known by saying aye. Aye. All those opposed, like sign. All right. Your bill passes, Mr. Whip. Thank you, Mr. Chairman. No more business standing before this committee. We stand adjourned.