Georgia's Disaster Relief Bill (HB 223) Heads to Governor’s Desk

On March 25, 2025, the Georgia House of Representatives agreed to the Senate’s amendments to House Bill 223 (HB 223), also known as the Timberlands Recovery, Exemption, and Earnings Stability (TREES) Act. This bill is now on its way to Governor Brian Kemp’s desk for his signature. The legislation provides crucial tax relief and financial assistance to individuals and businesses affected by Hurricane Helene, with particular focus on Georgia’s timber and agricultural industries.

Why HB 223 Matters to CPAs and Their Clients 

This bill is critical for Certified Public Accountants (CPAs) working on 2024 tax returns for their clients because it introduces several key tax benefits, including: 

  • Ad Valorem Tax Relief for Timber Losses – Local governments can grant temporary tax exemptions on standing timber in disaster-affected areas. 
  • Exemptions for Disaster Relief Payments & Crop Insurance Proceeds – Certain payments received for agricultural losses will be excluded from taxable income for 2024. 
  • Refundable Tax Credits for Timber Casualty Losses – Eligible timber producers who suffered losses from Hurricane Helene can claim state tax credits to offset financial burdens. 
  • Sales Tax Exemptions for Rebuilding Agricultural Infrastructure – Farmers rebuilding greenhouses, poultry sheds, and other agricultural structures will be eligible for temporary sales tax exemptions on construction materials.

Key Tax Provisions in HB 223 

  • Temporary Tax Relief on Standing Timber 
    • Local governments can exempt standing timber from ad valorem taxes for the last quarter of 2024 and all of 2025 if the timber was severely damaged or destroyed by Hurricane Helene. 
    • CPAs should check whether clients qualify for this exemption and help them file the required certification forms. 
  • Exclusion of Disaster Relief and Insurance Payments from Income Tax 
    • Federal disaster relief grants for agricultural losses due to Hurricane Helene will not be counted as taxable income for tax years 2025-2029. 
    • Federal crop insurance proceeds for losses due to the hurricane will also be excluded from taxable income for tax year 2025. 
    • CPAs should ensure clients properly report and document these exclusions when filing their 2024 and 2025 tax returns. 
  • Refundable & Transferable Tax Credits for Timber Casualty Losses 
    • Timberland owners who lost trees due to the hurricane will receive a 100% state tax credit for the casualty loss value of their timber (capped at $550 per affected acre). 
    • Credits are refundable and can also be transferred or sold to other Georgia taxpayers. 
    • CPAs should assist clients in pre-approving these credits and ensure they maximize their refund or transfer benefits. 
  • Sales Tax Exemption for Agricultural Rebuilding 
    • Farmers and agribusinesses rebuilding greenhouses, livestock barns, and poultry sheds can claim a temporary sales tax exemption on building materials used for repairs through December 31, 2025. 
    • Contractors working on agricultural projects will also be exempt from paying use tax on these materials. 

Next Steps for CPAs and Taxpayers 

Governor Kemp is expected to sign HB 223 into law soon. Once signed, the bill will take immediate effect. CPAs should: 

  • Identify eligible clients who suffered agricultural and timber losses in designated disaster areas. 
  • Advise on tax relief options, including property tax exemptions, disaster relief exclusions, and refundable tax credits. 
  • Assist with documentation & pre-approval of tax credits before the December 31, 2025 deadline. 
  • Ensure proper reporting of excluded disaster payments to avoid unnecessary taxation.

With HB 223, Georgia is taking a major step in supporting the state’s agricultural sector and ensuring that affected businesses recover quickly. CPAs will play a crucial role in helping clients navigate these new tax provisions and maximize their financial relief for the 2024 tax year. 

Link to HB 223 here. 

For more on legislation and representation or to locate your local representatives, visit www.gscpa.org. If you have any questions on this issue, contact Don Cook, vice president, legislative affairs at 404-877-2154 (mobile) or dcook@gscpa.org.