Georgia bill would let forestry manufacturers sell tax credits to spur mill investment

Representative Jesse Petrie told the House Ways and Means subcommittee that HB 1085 (LC4437373) aims to blunt what he described as a recent crisis in Georgia’s timber economy by making certain state tax credits transferable for a narrow set of "forestry manufacturing" activities. Petrie said the measure would allow existing jobs and investment tax credits to be monetized quickly by sawmills, paper and pulp mills, mass-timber plants, pellet producers, flooring and cabinet manufacturers and biofuel operations.

Supporters framed the proposal as a targeted, temporary tool to attract capital and restart facilities that have closed. "We are number one in the country in timber," Petrie said, arguing Georgia must use competitive incentives to keep and attract manufacturing. The bill extends those credits and authorizes transferability for taxable years 2026 through 2030 and, as drafted for the committee, is a five-year sunsetted program.

Jake Matthews of the Georgia Forestry Association told the committee the measure picks the higher applicable credit where existing code provides multiple rates and that the transferability option makes Georgia more competitive in the Southeast in attracting new mill investments. Matthews said the intent is to provide a rapid, monetizable incentive for companies weighing reinvestment in existing sites or locating new capacity in Georgia.

Committee members pressed the author on details that will affect where benefits flow. Several members noted the draft keeps the existing 1% investment credit for manufacturers in tiers 3 and 4 while increasing credits for higher-priority tiers (8% in tier 1, 5% in tier 2 in portions of the draft). Members asked the author to review whether tier 3 and 4 manufacturers — where many job losses occurred — should receive a larger boost. The author said caps and some rate mechanics were left for committee refinement.

The subcommittee treated the presentation as a first hearing; no final vote or statutory amendment was taken on the floor during this session. Next procedural steps noted by the author include refining effective dates, addressing a clerical date in section 6 and returning with agreed caps and clarified tier mechanics.

If advanced, the measure would only apply to the specific credits and activities named in the bill text. The committee and stakeholders flagged the absence of a credit cap in the draft and said the committee would need to resolve that before recommending final passage.