Ga. Comp. R. & Regs. r. 560-7-8-.48 — Wood Residuals Tax Credits

(1) Purpose. This regulation provides guidance concerning the implementation and administration of the wood residuals tax credits under O.C.G.A. § 48-7-29.14 . (2) Coordination of Agencies. The Georgia Forestry Commission and the Department of Revenue have been designated as the primary agencies responsible within Georgia to administer the program. The Georgia Forestry Commission is the state agency responsible for certifying the dollar amount of wood residuals transported or diverted to a renewable biomass qualified facility. (3) Tax Credit for Transporting or Diverting Wood Residuals. The tax credit under O.C.G.A. § 48-7-29.14(b)(2) is a tax credit against Georgia income tax and shall be granted to a taxpayer who transports or diverts wood residuals to a renewable biomass qualified facility on or after July 1, 2008. The taxpayer eligible to claim this credit shall be the taxpayer that received certification from the Georgia Forestry Commission for transporting or diverting wood residuals. (a) Certification. Prior to submitting an application for approval (Form IT-WR-AP) to claim the tax credit for transporting or diverting wood residuals, the taxpayer must receive certification, which attributes a dollar value to such transported or diverted wood residuals, from the Georgia Forestry Commission. Such certification must be attached to Form IT-WR-AP. (b) Credit limitation. The amount of wood residual tax credit granted to a taxpayer shall not exceed the actual amount certified by the Georgia Forestry Commission to the taxpayer. (c) Carryforward. Any unused credit for transporting or diverting wood residuals shall be allowed to be carried forward for the number of years authorized under O.C.G.A. § 48-7-29.14 . (4) Denial of Credit. In the event it is determined that the taxpayer has not met all the requirements of O.C.G.A. § 48-7-29.14 and this regulation, then the amount of the credits shall not be tentatively approved or the tentatively approved credits shall be retroactively denied. With respect to such denied credits, tax, interest, and penalties shall be due if the credits have already been claimed. (5) Claiming tax credits under O.C.G.A. § 48-7-29.14(b)(2) . Any taxpayer seeking to claim tax credits under O.C.G.A. § 48-7-29.14(b)(2) , must submit the appropriate forms to the Department of Revenue as provided in this paragraph. (a) Application. A taxpayer seeking to claim tax credits under O.C.G.A. § 48-7-29.14(b)(2) , must submit Form IT-WR-AP, and a certification from the Georgia Forestry Commission, to the Commissioner for tentative approval. (b) Notification. The Department will notify each taxpayer of the tax credits, tentatively approved and allocated to such taxpayer, within sixty (60) days from the date the application was received. (c) A taxpayer claiming income tax credits under O.C.G.A. § 48-7-29.14(b)(2) must attach an approved Form IT-WR-AP and Form IT-WR to its Georgia income tax return each year in which income tax credits are claimed. (6) Pass-Through Entities. When the taxpayer is a pass-through entity, and has no income tax liability of its own, the tax credits will pass to its members, shareholders, or partners based on the year ending profit/loss percentage. The credit forms will initially be filed with the tax return of the taxpayer to establish the amount of the credit available for pass through. The credit will then pass through to its shareholders, members, or partners to be applied against the tax liability on their income tax returns. The credits are available for use as a credit by the shareholders, members, or partners for their tax year in which the income tax year of the pass-through entity ends. For example: A partnership earns the credit for its tax year ending January 31, 2009. The partnership passes the credit to a calendar year partner. The credit is available for use by the partner beginning with the calendar 2009 tax year. (7) Effective Date. This rule is applicable to taxable years beginning on or after January 1, 2025. Taxable years beginning before January 1, 2025 will be governed by the regulations of Chapter 560-7 as they existed before January 1, 2025 in the same manner as if the amendments thereto set forth in this regulation had not been promulgated. Cite as Ga. Comp. R. & Regs. R. 560-7-8-.48 Authority: O.C.G.A. §§ 48-2-12 , 48-7-29.14 . History. Original Rule entitled "Clean Energy Property and Wood Residuals Tax Credits" adopted as ER. 560-7-8-0.34-.48. F. and eff. June 27, 2008, the date of adoption. Amended: Permanent Rule of same title adopted. F. Aug. 19, 2008; eff. Sept. 8, 2008. Amended: F. Oct. 14, 2010; eff. Nov. 3, 2010. Amended: Sep. 16, 2011; eff. October 6, 2011. Amended: New title, "Wood Residuals Credit." F. June 4, 2025; eff. June 24, 2025.