Authored by: Dr. Yanshu Li On May 8, Governor Brian Kemp signed HB 223 into law, providing multiple forms of tax relief for timber owners and farmers who suffered substantial economic losses from Hurricane Helene. Key provisions include: TEMPORARY AD VALOREM TAX RELIEF ON TIMBER HARVEST OR SALE Figure 1. Disaster areas eligible for the temporary ad valorem tax relief on timber harvest or sale. The law allows eligible local counties to suspend the collection of ad valorem taxes on the harvest or sale of standing timber in the disaster area. This tax relief applies to the fourth quarter of 2024 and all quarters of 2025. Eligible counties are those designated for FEMA individual or public assistance (see Figure 1). To implement the relief, each eligible county needs to adopt a resolution approving the tax suspension. If your county adopts the resolution and your timber property was severely damaged or destroyed due to the hurricane, you may apply for the tax relief by submitting a certification form issued by the Georgia Forestry Commission. To help offset the tax revenue loss, the state will provide a special grant to counties granting the tax relief. TIMBER TAX CREDIT Figure 2. 66 counties listed in the Governor’s Executive Order issued on October 29, 2024 The law provides a state income tax credit to taxpayers who suffered substantial eligible timber losses due to Hurricane Helene and expect to incur significant expenses for restoration and reforestation. Eligible taxpayers may claim a tax credit equal to 100% of their timber casualty loss, up to $550 per acre. Notably, the casualty loss is not limited to timber basis. To qualify, the damaged timber must be in one of the 66 counties listed in the Governor’s Executive Order issued on October 29 (see Figure 2). Timber growers and farmers (e.g., pecan growers) are eligible as long as the trees are grown for commercial production of food or wood. The total amount of the timber tax credit for all qualified taxpayers is capped at $200 million. To receive the tax credits, eligible taxpayers need to submit an application for preapproval to the Georgia Department of Revenue by December 31, 2025. Tax credits can be claimed after the required restoration or reforestation is completed. The tax credits can be applied dollar-for-dollar against Georgia state income taxes. Unused tax credits can be carried forward for up to 10 years. Additionally, the tax credits are refundable and transferable. STATE INCOME TAX EXEMPTION FOR FEDERAL DISASTER PAYMENTS The law exempts from Georgia state income taxes any payments received from federal disaster relief or assistance grant program if the funds are provided to address agricultural losses from Hurricane Helene. The details about the administration and implementation of the law are still being developed. The Georgia Department of Revenue, local governing units, and the Georgia Forestry Commission all play a critical role in the process. We will share updates as they become available. The details about the administration and implementation of the law are still being developed. The Georgia Department of Revenue, local governing units, and the Georgia Forestry Commission all play a critical role in the process. We will share updates as they become available.
