Georgia forestry manufacturers could claim credits for equipment investments

Forestry manufacturers may claim a tax credit for eligible investment property. The facility must be in Georgia. The credit rate is 15 percent in tier 1 counties, 10 percent in tier 2, and 3 percent in tier 3 or 4 counties. A forestry manufacturing facility must be certified by the state revenue commissioner in consultation with the State Forestry Commission. The property must meet the code section's qualifications and limits. This applies to taxable years beginning on or after January 1, 2026, and before January 1, 2031.

Forestry manufacturers may sell or transfer certain unused tax credits to another Georgia taxpayer. The credits must have been earned by a forestry manufacturer for the covered taxable years and remain unused. They may be transferred or sold to another Georgia taxpayer. A manufacturer may make only one transfer or sale for credits earned in a taxable year, though it may involve multiple buyers. The manufacturer must notify the department in writing within 30 days and provide required details. A transfer does not extend the credit's use period, and a buyer receives only the rights the manufacturer had. The credits must be earned for taxable years beginning on or after January 1, 2026, and before January 1, 2031. The manufacturer must report a transfer within 30 days.

The law sets total caps on forestry manufacturer tax credits and requires a two-thirds vote to renew or extend them. The limits cover credits under the listed Georgia tax credit programs for forestry manufacturers. Credits for forestry manufacturers in tier 3 and tier 4 counties count toward a separate $100 million cap as well as the $250 million overall cap. The caps apply to the credits allowed under the listed code sections. Any renewal or extension requires the specified vote.