Subcommittee advances tax credit for timber losses tied to Hurricane Helene
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Summary
The Senate Finance subcommittee voted to report S682 favorably after hearing from timber industry and the bill’s sponsor. The bill would create a credit for timber casualty losses from Hurricane Helene, capped at $25 million and administered by DOR with forestry certification requirements.
The Senate Finance Sales and Income Tax Subcommittee voted to report S682 favorably to the full committee after hearing industry testimony and sponsor remarks.
Senator Tom Young, the bill’s author, said the measure is modeled on recent Georgia law and aims to help timberland owners in areas hit hard by Hurricane Helene. "This is an issue that a number of people in my district and in the surrounding counties have asked me about," he said, describing downed stands of pine and hardwoods across the Savannah River corridor.
Cam Crawford, president of the Forestry Association of South Carolina, told the subcommittee the state’s forest industry has lost market capacity since 2023 and that Helene caused widespread damage. The association endorsed S682 and summarized its core provisions: an income tax credit equal to 100% of a certified timber casualty loss up to $550 per acre, an aggregate cap of $25 million for all taxpayers across tax years, first-come, first-served credit allocation by the Department of Revenue (DOR), and a five-year carryforward for unused credits. Crawford said the Forestry Commission and a registered forester would be required to certify losses and that the Forestry Commission could audit properties at DOR’s request.
Senator Hutto (Orangeburg) raised fairness concerns about a first-come, first-served allocation, proposing instead a finite filing window with pro rata apportionment if claims exceed the cap so that no claimant is shut out by filing order. "I don't think it should be a race on this," Hutto said, urging the committee to allow staff and DOR to craft allocation language that gives all verified claimants a fair shot.
Senator Young and industry witnesses acknowledged the point; the subcommittee agreed to advance the bill with the expectation a committee amendment will be prepared for the full committee to address allocation mechanics.
The bill also creates an individual income tax deduction for disaster-relief payments that are included in federal taxable income when those payments specifically address agricultural losses from a federally declared disaster.
The committee recorded a favorable report to the full committee; remaining speakers on the timber item waived their time.