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Committee grills sponsors on reauthorizing Georgia Conservation Tax Credit; vote postponed
Summary
Lawmakers debated reauthorizing the Georgia Conservation Tax Credit (HB 1148) and raised concerns about appraisal methods, syndicated-easement fraud and administrative capacity; stakeholders and DNR urged accreditation and third-party appraisal review; committee deferred a vote pending additional information.
Sponsors returned to a reauthorization of the Georgia Conservation Tax Credit, arguing the program protects working forests and farmland from development and preserves land for future generations. The bill, as described by sponsors, would reauthorize the program for five years, set per-owner caps (sponsor cited $500,000 for individuals and $1 million for partnerships) and contemplate aggregate program caps that committee members debated.
Several senators pressed sponsors on past problems with syndicated conservation-easement transactions that produced inflated valuations and federal audits. Senator Hickman and others asked whether fair-market-value appraisals should reflect current use rather than speculative future development; ledge counsel and witnesses confirmed appraisals use current zoning and that the bill proposes third-party review mechanisms.
Neil Fleckenstein of Tall Timbers Research Station and Land Conservancy testified that Congress’s Conservation Easement Integrity Act (passed in 2022, as described) substantially limited syndicated hypervaluation and that accredited land trusts are barred from participating in abusive syndicated deals. Fleckenstein said accredited land trusts predominantly work with forest and farmland easements and monitor easements to ensure conservation purposes are maintained.
Trevor Santos of the Department of Natural Resources told the committee DNR does not have a formal position on the bill but would require additional staff and contracting capacity to fully administer certification and appraisal review if the state took on responsibilities now performed by the State Properties Division. He recommended contracting certified appraisers for reviews and indicated the agency could refer suspect valuations to the Georgia Real Estate Commission.
Committee reaction and next steps: Senators repeatedly raised concerns about fraud safeguards and local fiscal impacts (property-tax revenue implications for counties). Because of outstanding questions — including re-designation of statutory subsections cited in the draft, precise appraisal procedures and DNR resource needs — the chair postponed a vote to allow sponsors and agencies to supply additional materials and to permit further vetting of LC sections.
Representative Cannon, Representative Franklin and other sponsors signaled willingness to work with the committee on caps, third-party review and program safeguards. The committee requested additional documentation from legislative counsel, DNR and stakeholders before returning the bill for a vote.
Ending: The committee did not vote on HB 1148; sponsors and agencies were directed to provide clarifying legal language, evidence of administrative capacity and any fiscal implications before the committee reconvenes on the measure.
