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HB 129

Ad valorem tax; bona fide conservation use property; remove a limitation on leased property as to certain entities

2025-2026 Regular Session Introduced by James Burchett and 5 co-sponsors

HB 129 boosts Georgia's conservation efforts by removing leased property restrictions for tax benefits and renewing $10M in tax credits for postproduction companies, aiding economic growth.

Effective Date
0
WeVote Research Nonpartisan
Bill Summary · HB 129

Summary of House Bill 129 (HB 129)

Purpose and Intent

House Bill 129 (HB 129) aims to amend existing Georgia tax laws regarding bona fide conservation use property and tax credits for postproduction expenditures. The bill seeks to remove certain limitations on leased property for specific entities and renew tax credits for postproduction expenditures, thereby promoting conservation efforts and supporting the film industry in Georgia.

Key Provisions

1. Amendments to Conservation Use Property Assessment

  • Removal of Limitations on Leased Property: The bill removes restrictions that previously disqualified certain leased properties from being assessed as bona fide conservation use property. This change allows corporations and partnerships that meet specific criteria to qualify for conservation use assessment.

  • Criteria for Qualification:

    • The entity must be registered with the Secretary of State and primarily engaged in agricultural or timber production.
    • At least 80% of the entity's gross income must derive from bona fide conservation uses.
    • At least one member of the entity must hold a minimum 25% ownership interest in the leased property.

  • Assessment Requirements:

    • Owners of properties less than ten acres must provide additional proof of bona fide conservation use unless they can demonstrate income or expenses related to the qualifying use.
    • Properties of ten acres or more are exempt from this additional proof requirement.

  • Current Use Assessment Limitations: No individual can benefit from current use assessment on more than 2,000 acres of conservation property.

2. Renewal of Tax Credits for Postproduction Expenditures

  • The bill renews tax credits for postproduction companies, with an aggregate annual cap of $10 million for taxable years starting from January 1, 2026, through January 1, 2031.
  • If the total tax credits claimed in a year are less than the cap, the unclaimed amount can be added to the following year's cap.

Who Would Be Affected

  • Landowners: Those who lease land for conservation purposes may benefit from the removal of restrictions, allowing for broader participation in conservation efforts.
  • Postproduction Companies: The renewal of tax credits is designed to support the film industry, encouraging economic growth and job creation in Georgia.

Procedural Aspects and Timeline

  • Effective Date: The bill became effective on May 14, 2025, and applies to all taxable years beginning on or after January 1, 2026.
  • Legislative Journey:
    • Introduced on January 27, 2025.
    • Passed by the House and Senate, with amendments, before being signed into law by the Governor on May 14, 2025.

Conclusion

HB 129 represents a significant legislative effort to enhance conservation practices in Georgia while simultaneously supporting the state's film industry. By removing restrictions on leased properties and renewing tax credits, the bill aims to foster economic growth and environmental stewardship.

Compiled from official sources — confirm details with the bill’s official record.

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