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Georgia lawmakers have approved a landmark $300 million in tax breaks to support farmers and timberland owners impacted by Hurricane Helene, which wreaked havoc across the state in September 2024. The bill, passed unanimously by the House on Friday, now awaits approval from Governor Brian Kemp.
A Crucial Part of the Recovery Effort
“This package specifically addresses the challenges faced by our farmers and foresters as they recover from the devastation caused by Hurricane Helene,” said House Majority Whip James Burchett, a Republican from Waycross.
This tax relief is part of a broader recovery plan, which includes an earlier $862 million allocation to help the state rebuild after the storm. While the hurricane caused billions in damages, these new tax measures aim to ease the financial burden on key industries that are integral to Georgia’s economy.
Key Provisions of the Tax Break Package
The bill includes several provisions aimed at offsetting the financial strain on Georgia’s agricultural and forestry sectors. Among the most significant measures:
- Exemption on Federal Crop Insurance and Disaster Payments: Farmers who receive federal crop insurance or disaster relief due to Hurricane Helene’s damage will be exempt from state income taxes on these payments. This tax break could provide up to $140 million in relief for Georgia’s farmers.
- Timberland Tax Breaks: Private timberland owners in 66 counties affected by the hurricane will be eligible for state income tax credits if they replant damaged trees. This credit could be worth as much as $550 per acre and is expected to total between $83 million and $104 million through 2030.
- Waiver on Sales Taxes for Rebuilding Materials: The bill also includes provisions to waive state and local sales taxes on building materials required to rebuild critical farm infrastructure, including chicken houses, barns, and fences.
- Property Tax Relief for Timberland Owners: Counties will have the option to waive taxes on timber harvested during the last three months of 2024 and all of 2025. Any county that chooses to offer this relief will be reimbursed by the state for the lost revenue, with the estimated cost to the state being $17.4 million.
Continued Support for Farmers and Communities
Senator Russ Goodman, a Republican from Cogdell, emphasized the far-reaching impact of the disaster. “When you go from Valdosta to Augusta, it’s pretty devastating,” he said. “Not only have these people lost their livelihoods and inheritance, but their communities are also losing out on the tax revenue that timber production used to generate.”
In addition to the $300 million in tax relief, Georgia lawmakers previously approved $285 million for low-interest loans to farmers, as well as funds to remove downed trees that pose a fire hazard. Furthermore, $25 million has been allocated for grants to nonprofits providing direct aid to individuals in need.
A Vital Step Toward Recovery
The tax relief measures, along with the broader financial support package, are expected to provide crucial assistance to Georgia’s farmers and timberland owners as they navigate the challenging recovery process following Hurricane Helene. The state is focused on helping these industries rebuild and continue contributing to Georgia’s economy in the wake of one of the worst natural disasters in recent history.
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