House committee approves tax-credit plan to revive Georgia’s forestry market

A House committee voted to advance a substitute to House Bill 276 on a voice vote after supporters said the measure would revive Georgia’s struggling forestry industry by using transferable tax credits to spur construction of woody‑biomass energy facilities.

House Majority Whip Whit Burchat, who presented the measure, told the committee the sector is "in crisis," describing local loggers laying off workers because plants have closed and there is nowhere to take harvested wood. "It takes him $25,000 a week to be able to make payroll," Burchat said as he framed the bill as a market solution.

The substitute would create a transferable income‑tax credit described in the bill text as $200,000,000 to encourage private investment in woody‑biomass energy facilities. Burchat said the credit is intended to bridge a financing gap: "A commercial lender will not take up the risk of construction," he said, and the credit would help projects attract third‑party capital.

The bill includes a second provision that lets data centers continue to claim certain state incentives if they locate or operate behind a biomass generator that offsets their power draw. Burchat said qualifying data centers that meet the bill's geography or usage definitions could have their sales tax exemption extended through 2037.

Committee members pressed for details about utility engagement, costs and siting. Chairwoman Camp asked whether Georgia Power, EMCs and other utilities had been consulted; Burchat said he has discussed the idea with utility officials and that while utilities have "trepidation" about behind‑the‑meter arrangements, they have been part of discussions. On whether utilities would own generation, Burchat said they would not: "This would be a contract," he said, describing private ownership with contractual sales to utilities or cooperatives.

Lawmakers also questioned the scale and economics of proposed plants. Burchat said the bill contemplates facilities of 50 to 150 megawatts with a working example of an 80‑megawatt plant costing roughly $500 million to build; his financing example combined commercial lending, developer equity and the transferable tax credit. He told the committee his estimate was that eight such facilities could compensate for the state's lost woody‑biomass tonnage.

Representative Buckner asked whether federal funds could be combined with the state credit and whether rural EMCs could participate. Burchat replied there is "nothing in my provision that says that they couldn't get both" federal support and the state credit, and that any taxpayer—not just large developers—could pursue a project.

Members raised fiscal‑note questions. Committee members sought clarity on a $200,000,000 figure referenced in the draft: Burchat said the $200,000,000 limit was intended per taxpayer and that the bill's aggregate across five years should not exceed $1.6 billion; the committee noted the bill did not yet include a fiscal note for the new credit.

After a brief discussion about possible technical edits, a member moved to pass the committee substitute to House Bill 276 (LC 443513S); a second was recorded, the committee took a voice vote and the chairman announced the measure passed. The committee adjourned with no further business.

The measure will proceed to the next House step; the transcript does not record a roll‑call tally or the names of the motion's mover or seconder.