Georgia HB 134: Sales and use tax; manufactured homes; revise and expand exemption

Bill Text

26 HB 134/AP
House Bill 134 (AS PASSED HOUSE AND SENATE)
By: Representatives Camp of the 135
th, Jasperse of the 11
th, Burchett of the 176
th, Corbett of
the 174
th, Williams of the 148
th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated,1
relating to imposition, rate, computation, exemptions, and credits relative to income taxes,2
so as to provide for various tax credits for forestry manufacturing facilities; to provide for3
transfer of tax credits and conditions; to provide for reporting; to provide for aggregate4
maximum amounts of tax credits; to require approval of future amendments by a two-thirds'5
vote of each chamber of the General Assembly; to provide for effective dates and automatic6
repeals; to provide for definitions; to provide for a short title; to provide for related matters;7
to provide for an effective date and applicability; to repeal conflicting laws; and for other8
purposes.9
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
SECTION 1.11
This Act shall be known and may be cited as the "Keep Georgia Forested Act."12
SECTION 2.13
Article 2 of Chapter 7 of Title 48 of the Official Code of Georgia Annotated, relating to14
imposition, rate, computation, exemptions, and credits relative to income taxes, is amended15
in Code Section 48-7-40, relating to designation of counties as less developed areas and tax16
credits for certain business enterprises, by revising paragraph (2) of subsection (a) and adding17
H. B. 134
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26 HB 134/AP
new paragraphs, revising paragraph (2) of subsection (e), and adding a new subsection to18
read as follows:19
"(2) 'Business enterprise' means any business or the headquarters of any such business20
which is engaged in manufacturing, including, but not limited to, the manufacturing of21
alternative energy products for use in solar, wind, battery, bioenergy, biofuel, and electric22
vehicle enterprises, warehousing and distribution, processing, telecommunications,23
broadcasting, tourism, research and development industries, biomedical manufacturing,24
forestry manufacturing, and services for the elderly and persons with disabilities. Such25
term shall not include retail businesses. Businesses are eligible for the tax credit provided26
by this Code section at an individual establishment of the business based on the27
classification of the individual establishment under the North American Industry28
Classification System. For purposes of this Code section, the term 'establishment' means29
an economic unit at a single physical location where business is conducted or where30
services or industrial operations are performed. If more than one business activity is31
conducted at the establishment, then only those jobs engaged in the qualifying activity32
will be eligible for the tax credit provided by this Code section."33
"(3.1) 'Establishment' means an economic unit at a single physical location where34
business is conducted or where services or industrial operations are performed. If more35
than one business activity is conducted at the establishment, then only those jobs engaged36
in the qualifying activity shall be eligible for the tax credit provided by this Code37
section."38
"(4.1) 'Forestry manufacturing' or 'forestry manufacturer' means any business with an39
establishment in this state that is certified by the state revenue commissioner in40
consultation with the director of the State Forestry Commission as an establishment that41
utilizes wood fiber, forest-derived biomass, wood residuals, or forestry by-products, from42
domestically sourced virgin timber, as a primary feedstock in the manufacture of forest43
products, renewable fuels, bio-based chemicals, bioenergy, or other value-added products44
that support or derive economic value from the forest products supply chain, regardless45
of the establishment's primary North American Industry Classification System code."46
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26 HB 134/AP
"(2) Existing business enterprises and, for taxable years beginning on or after January 1,47
2026, and prior to January 1, 2031, forestry manufacturers shall be allowed an additional48
tax credit for taxes imposed under this article equal to $500.00 per eligible new full-time49
employee job the first year in which the new full-time employee job is created. The50
additional credit shall be claimed in the first taxable year in which the new full-time51
employee job is created. The number of new full-time employee jobs shall be determined52
by comparing the monthly average number of full-time employees subject to Georgia53
income tax withholding for the taxable year with the corresponding period of the prior54
taxable year. In tier 1 counties, those existing business enterprises and forestry55
manufacturers that increase employment by five or more shall be eligible for the credit. 56
In tier 2 counties, only those existing business enterprises and forestry manufacturers that57
increas