Notice ITD-2026-002

RE: Proposal to Adopt Ga. Comp. R. & Regs. r. 560-7-8-.71.

TO ALL INTERESTED PERSONS AND PARTIES:

In compliance with O.C.G.A. § 50-13-4, the Georgia Department of Revenue gives notice that it proposes to adopt Ga. Comp. R. & Regs. r. 560-7-8-.71.

Attached to this notice are an exact copy and synopsis of the proposed Rule. The proposed Rule is being adopted under the authority of O.C.G.A. §§ 48-2-12, 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4.

The Department of Revenue will consider the proposed adoption of the above Rule at a remote regulation hearing held at 10:00 a.m. on November 5 2026, which can be accessed through the following link: https://meet.goto.com/707020477 or via telephone at +1 (646) 749-3129 (local) and 1 877 309 2073 (toll-free) with the access code: 707-020-477. At the beginning of the hearing, attendees will be required to announce themselves and notify the Department if they plan to make oral comments during the hearing.

The Department must receive all comments regarding the above-referenced Rule from interested persons and parties no later than 10 a.m. on November 5, 2026. Electronic comments must be sent to [email protected]. Please reference “ITD-2026-002” on all comments.

Regulatory Impact Analysis

GEORGIA DEPARTMENT OF REVENUE 
ADMINISTRATIVE DIVISION
SUBJECT 560-7-8 

Purpose of Proposed Regulation

The Department of Revenue (“Department”) proposes to adopt Rule 560-7-8-.71, to give regulatory effect to the statutory provisions of the Keep Georgia Forested Act (H.B. 134, 2026), which provides Georgia forestry manufacturers with targeted income tax credits for jobs and investments.  The proposed rule provides a comprehensive framework for the implementation, administration, and utilization of the tax credits. 

The proposed rule defines the technical qualifications, tier-based allocation formulas, application process, and credit transfer process, ensuring a transparent and predictable system for industry stakeholders.  By doing so, the rule provides clear administrative and operational guidance for eligible forestry manufacturers to properly claim the credits, apply the credits against withholding tax liabilities, and transfer approved credits. 

Affected Groups

The proposed rule affects only those forestry manufacturers, as such term is defined in O.C.G.A. § 48-7-40.  Specifically, pursuant to O.C.G.A. § 48-7-40(a)(4.1), the terms “Forestry manufacturing” or “forestry manufacturer” mean “any business with an establishment in this state that is certified by the state revenue commissioner in consultation with the director of the State Forestry Commission as an establishment that utilizes wood fiber, forest-derived biomass, wood residuals, or forestry by-products, from domestically sourced virgin timber, as a primary feedstock in the manufacture of forest products, renewable fuels, bio-based chemicals, bioenergy, or other value-added products that support or derive economic value from the forest products supply chain, regardless of the establishment’s primary North American Industry Classification System code.” 

The provisions of this rule apply solely to qualifying forestry manufacturers.  Other recipients of jobs or investment tax credits are not affected by this rule, as their qualifications and processes remain unchanged and are subject to existing statutory and regulatory guidelines. 

Economic Impact of the Regulation

The Department has determined that the benefits of the proposed rule include regulatory alignment with current law.  Specifically, the rule provides industry stakeholders with a clear, predictable administrative framework and with appropriate forms, thereby reducing administrative burdens on industry stakeholders.  Additionally, by establishing standard procedures for the credit application, withholding tax pre-approval, and credit transfer processes, the rule provides operational efficiencies.  This creates a significant benefit for eligible forestry manufacturers, and for the procedures relating to the credit application, gives them the clarity needed to efficiently time their applications within the constraints of the aggregate program caps. 

Because the proposed regulation imposes no requirements upon forestry manufacturers beyond those required by statute, the Department anticipates no costs are incurred by regulated parties in connection with the proposed rule. Therefore, the Department has determined that the proposed regulation does not have measurable or adverse economic impacts.

Regulatory Alternatives

The Department of Revenue has determined that there is not a known less expensive alternative that fully accomplishes the stated statutory objectives which form the basis of the proposed regulation. 

Statutory Authority

O.C.G.A. §§ 48-7-40, 48-7-40.1, 48-7-40.2, 48-7-40.3, and 48-7-40.4.

Synopsis

GEORGIA DEPARTMENT OF REVENUE
INCOME TAX DIVISION

CHAPTER 560-7-8
RETURNS AND COLLECTIONS
560-7-8-.71. Forestry Manufacturer Credit

This regulation is being adopted to accommodate the additional provisions for forestry manufactures claiming the jobs tax credit and investment tax credit as a result of H.B. 134 (2026). This regulation provides the application requirements and process for determining eligibility, as well as how to apply the credits to withholding, and how to transfer them. Recipients of the job tax credit and investment tax credit who are not forestry manufacturers are unaffected.

Attachments

ITD 2026-002 Regulation Packet (Redlined).pdf  (PDF, 502.08 KB)