GeorgiaHB 1342025-2026 Regular SessionHouse

Sales and use tax; manufactured homes; revise and expand exemption

Sponsored By: James Burchett (Republican), Beth Camp (Republican), John Corbett (Republican), Rick Jasperse (Republican), David Jenkins (Republican), Noel Williams (Republican)

Signed by Governor

Ways & MeansFinanceGeneral Bill

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 2 benefits, 1 costs, 2 mixed.

Forestry manufacturers get investment tax breaks

For taxable years beginning in 2026 through 2030, certified forestry manufacturers get credits for qualifying property bought or acquired. Credits equal 15% of property costs in tier 1 counties, 10% in tier 2, and 3% in tiers 3 and 4. For recycling, pollution-control or prevention, and defense-to-domestic-production property, the applicable rates are 8% in tier 1 and 5% in tier 2. Facilities must use qualifying materials from domestically produced virgin timber as their main raw material. These are business income tax credits, not direct household payments.

Forestry tax credits face spending limits

Effective July 1, 2026, the law sets limits applying to taxable years beginning on or after January 1, 2026. Total forestry-manufacturer credits across the covered programs are capped at $250 million. Within that total, job and tier 3–4 investment credits for forestry manufacturers in those counties are capped at $100 million. Renewing or extending these credits requires a roll-call vote backed by two-thirds of elected members in each legislative chamber.

More forestry businesses qualify for tax credits

The law adds qualifying Georgia forestry manufacturers to state income tax-credit programs, including the rural business program. The changes generally cover taxable years beginning in 2026 through 2030. Each business location needs Revenue Department certification, with advice from the State Forestry Commission. Its main raw material must be wood fiber, forest biomass, wood leftovers, or forestry by-products from domestically produced virgin timber. Qualifying products include forest products, renewable fuels, bio-based chemicals, bioenergy, and other forest-supply-chain products; industry codes do not decide eligibility. At locations with several activities, only jobs doing the qualifying work count.

Forestry credit sales carry reporting rules

Forestry manufacturers can sell or transfer qualifying claimed but unused credits to another Georgia taxpayer, in full or part. Eligible credits come from taxable years beginning January 1, 2026, through December 31, 2030. Credits earned in one taxable year can be transferred only once, though that transaction can include multiple buyers. Sellers must notify Revenue within 30 days, listing before-and-after balances, buyer tax IDs, the date, amounts, and other required information. Noncompliance blocks credit use until corrected; buyers receive only the seller's valid rights, and Revenue can deny or recover invalid credits from buyers and seek repayment from sellers. Transfers do not restart the original deadline for using unused credits. The transfer rules expire December 31, 2030, but qualifying earlier credits remain usable and transferable afterward within their original deadlines. Revenue must report total forestry credit transfers to the House Ways and Means and Senate Finance committees by December 31 each year.

Forestry job credits have conflicting dates

The law adds existing forestry manufacturers to an extra annual $500 credit for each eligible new full-time job. It names taxable years 2026–2030, but also limits eligible job creation to taxable years 2006–2010, leaving newer jobs' eligibility unclear. Jobs must be Georgia-based, last at least 35 hours weekly, and meet wage rules; the credit paragraph requires average new-job wages above Georgia's lowest county average. Employers must offer health insurance, but do not have to pay the full premium. Minimum net new jobs are 5 in tier 1, 10 in tier 2, 15 in tier 3, and 25 in tier 4. Revenue compares monthly average Georgia withholding employees with the prior year and adjusts credits annually; falling below the minimum blocks that year's credits, not earlier credits.

Sponsors & Cosponsors

Cosponsors

Blake Tillery
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 428 • No: 46

House vote • 3/31/2026

Agree to Senate Sub as Am

Yes: 156 • No: 5 • Other: 12

Senate vote • 3/31/2026

AGREE TO HOUSE AMENDMENT TO SENATE SUBSTITUTE

Yes: 50 • No: 0 • Other: 3

Senate vote • 2/12/2026

PASSAGE BY SUBSTITUTE

Yes: 31 • No: 17 • Other: 4

Senate vote • 4/2/2025

MOTION TO ENGROSS: SB 214, HB 66, HB 79, HB 129, HB 134, HB 141, HB 370, HB 397, HB 445, HB 463, HB 532, HB 586, HB 652

Yes: 31 • No: 24

House vote • 2/26/2025

PASSAGE

Yes: 160 • No: 0 • Other: 4

Actions Timeline

Effective Date
7/1/2026
House Date Signed by Governor
5/6/2026House
Act 427
5/6/2026
House Sent to Governor
4/10/2026House
House Agreed Senate Amend or Sub As Amended
3/31/2026House
Senate Agreed House Amend or Sub
3/31/2026Senate
Senate Third Read
2/12/2026Senate
Senate Passed/Adopted By Substitute
2/12/2026Senate
Senate Committee Favorably Reported By Substitute
2/10/2026Senate
Senate Taken from Table
1/12/2026Senate
Senate Recommitted
1/12/2026Senate
Senate Engrossed
4/2/2025Senate
Senate Tabled
4/2/2025Senate
Senate Read Second Time
3/21/2025Senate
Senate Committee Favorably Reported
3/20/2025Senate
Senate Read and Referred
2/27/2025Senate
House Third Readers
2/26/2025House
House Passed/Adopted By Substitute
2/26/2025House
House Committee Favorably Reported By Substitute
2/19/2025House
House Second Readers
1/29/2025House
House First Readers
1/28/2025House
House Hopper
1/27/2025House

Bill Text

HB 134/AP* (v10)
PDF

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