Keeping Georgia FORESTED
How One Change to the State’sTax Code Aims to Keep Forestry Investment and Jobs in Rural Georgia
Summer 2026
By John Casey
As Georgia’s forestry sector works through one of the most significant transitions in its history, state leaders used the 2026 legislative session to give the industry a new tool for keeping investment and jobs in rural Georgia. With the passage of House Bill 134, the Keep Georgia Forested Act, lawmakers enhanced two of the state’s most effective economic development incentives for forestry manufacturers.
Signed by Governor Brian Kemp at Georgia Forestry Association (GFA) headquarters in Forsyth in May and effective July 1, HB 134 makes the state’s existing Jobs Tax Credit and Investment Tax Credit transferable for qualified forestry manufacturers. The measure carries a five-year sunset, a $250 million cap, annual reporting requirements, and enhanced incentives for manufacturers locating in Georgia’s rural Tier 1 and Tier 2 counties.GFA, working alongside the bill’s legislative champions and partners across the agricultural and manufacturing sectors, supported the effort as part of a broader push to keep Georgia competitive for forest products Keeping Georgia investment as the industry modernizes
Signed by Governor Brian Kemp at Georgia Forestry Association (GFA) headquarters in Forsyth in May and effective July 1, HB 134 makes the state’s existing Jobs Tax Credit and Investment Tax Credit transferable for qualified forestry manufacturers. The measure carries a five-year sunset, a $250 million cap, annual reporting requirements, and enhanced incentives for manufacturers locating in Georgia’s rural Tier 1 and Tier 2 counties.GFA, working alongside the bill’s legislative champions and partners across the agricultural and manufacturing sectors, supported the effort as part of a broader push to keep Georgia competitive for forest products Keeping Georgia investment as the industry modernizes
"Timber is one of our most“important strategic industries, and the way we keep it strong is to focus on where it’s going.” — Pat Wilson, Commissioner, Georgia Department of Economic Development
Rep. Jesse Petrea led the effort to pass HB 134 in an effort to help new forestry manufacturers access capital early.
Why Transferability Matters Now
Georgia has long offered jobs and investment tax credits to companies that expand here. But a tax credit only helps a company that owes enough state tax to claim it — and many of the ventures now reshaping the forest products sector, from mass timber and advanced wood manufacturing to sustainable aviation fuel, are early-stage operations still bringing their first facilities online.
Making the credits transferable allows a qualifying manufacturer to sell or transfer a credit it cannot yet use, converting a future benefit into capital it can put to work during the critical early stages of a project.
The bill defines eligible forestry manufacturers to ensure the incentive reaches established operations and new entrants alike — including sawmills, paper mills, pulp mills, pellet mills, biofuel producers and innovative advanced-wood-products facilities.
Pat Wilson, commissioner of the Georgia Department of Economic Development, said the change reflects the state’s broader approach to an industry in transition. “I don’t think any of us have seen an industry this important to the state pivot and change like we’re seeing in timber right now,” Wilson said. “Timber is one of our most important strategic industries, and the way we keep it strong is to focus on where it’s going.”
Where it is going increasingly means early-stage operations that have not yet scaled their technology or built out their workforce. For those companies, a conventional jobs credit offers little immediate value, because there is not yet enough tax liability to claim it against. Transferability closes that gap, putting capital within reach at the stage when it is hardest to find.
A Response to Mill Closures and a Changing Market HB 134 arrives at a pivotal moment. A series of mill closures across the state in 2025 disrupted supply chains and cost jobs in communities where forestry is the economic foundation. At the same time, some of the industry’s traditional product lines face long-term pressure even as new markets begin to mature. Rep. Jesse Petrea has witnessed the impacts of industry shifts over the past year firsthand in his home district near Savannah.
“It was forestry that built Georgia long before the multitudes of industries that exist today,” said Petrea. “Indeed, at Union Bag, it supported my grandfather’s family like so many others. We have done so much to incentivize new sectors to Georgia. It was a crucial time to help that forestry industry that had long supported Georgia families.
”Hearing from stakeholders throughout the supply chain, from landowners to mills, Rep. Petrea led the effort to pass HB 134 with the goal of addressing a problem the industry has long faced: access to capital at the moment it is needed most.“
The hardest thing for a new forestry manufacturer to find is capital early, before the jobs and the revenue catch up,” Petrea said. “Making these credits transferable puts real value in their hands when it counts, and it tells our growers and mill workers that there will be a market for what they produce for years to come."
Georgia has long offered jobs and investment tax credits to companies that expand here. But a tax credit only helps a company that owes enough state tax to claim it — and many of the ventures now reshaping the forest products sector, from mass timber and advanced wood manufacturing to sustainable aviation fuel, are early-stage operations still bringing their first facilities online.
Making the credits transferable allows a qualifying manufacturer to sell or transfer a credit it cannot yet use, converting a future benefit into capital it can put to work during the critical early stages of a project.
The bill defines eligible forestry manufacturers to ensure the incentive reaches established operations and new entrants alike — including sawmills, paper mills, pulp mills, pellet mills, biofuel producers and innovative advanced-wood-products facilities.
Pat Wilson, commissioner of the Georgia Department of Economic Development, said the change reflects the state’s broader approach to an industry in transition. “I don’t think any of us have seen an industry this important to the state pivot and change like we’re seeing in timber right now,” Wilson said. “Timber is one of our most important strategic industries, and the way we keep it strong is to focus on where it’s going.”
Where it is going increasingly means early-stage operations that have not yet scaled their technology or built out their workforce. For those companies, a conventional jobs credit offers little immediate value, because there is not yet enough tax liability to claim it against. Transferability closes that gap, putting capital within reach at the stage when it is hardest to find.
A Response to Mill Closures and a Changing Market HB 134 arrives at a pivotal moment. A series of mill closures across the state in 2025 disrupted supply chains and cost jobs in communities where forestry is the economic foundation. At the same time, some of the industry’s traditional product lines face long-term pressure even as new markets begin to mature. Rep. Jesse Petrea has witnessed the impacts of industry shifts over the past year firsthand in his home district near Savannah.
“It was forestry that built Georgia long before the multitudes of industries that exist today,” said Petrea. “Indeed, at Union Bag, it supported my grandfather’s family like so many others. We have done so much to incentivize new sectors to Georgia. It was a crucial time to help that forestry industry that had long supported Georgia families.
”Hearing from stakeholders throughout the supply chain, from landowners to mills, Rep. Petrea led the effort to pass HB 134 with the goal of addressing a problem the industry has long faced: access to capital at the moment it is needed most.“
The hardest thing for a new forestry manufacturer to find is capital early, before the jobs and the revenue catch up,” Petrea said. “Making these credits transferable puts real value in their hands when it counts, and it tells our growers and mill workers that there will be a market for what they produce for years to come."
"When a mill closes, it doesn’t just affect on ebusiness — it impacts families, local economies and entire supply chains.”— Sen. Larry Walker III
Sen. Larry Walker III carried the legislation in the Senate, advocating on behalf of communities impacted by the recent wave of mill closures.
“Forestry isn’t just an industry in our state, it’s a way of life for many in our rural communities,” said Walker. “When a mill closes, it doesn’t just affect one business —it impacts families, local economies and entire supply chains. By modernizing our tax structure and encouraging investment in forestry manufacturing, we’re laying the groundwork for long-term growth and stability in the communities that depend on this industry.”
What It Means for Rural Communities
The clearest beneficiaries are the rural counties where forestry jobs are concentrated and economic alternatives are limited. A single facility can anchor a community, and its reach extends well beyond the mill gate.
“You could have a plant with 150 people, and those are 150 families whose lives have changed because they have good jobs in rural Georgia,” Wilson said. “Then there’s the ripple effect across counties and communities — the growers, the people driving the trucks. It really is an industry that touches so many lives across the state.
”By weighting its incentives toward Tier1 and Tier 2 counties, HB 134 is designed to direct investment to the places that need it most — and to signal to companies weighing where to build that Georgia intends to grow with them.
Building on a Strong Foundation
Forestry supports more than 141,000 jobs in Georgia, contributes an estimated $59 billion annually to the economy, and maintains a footprint of more than 22 million acres of working forest — 92% of it privately owned. It is both an economic engine and a conservation success story, with Georgia’s working forests growing significantly more wood than is harvested each year.
HB 134 is the latest in a series of measures that have strengthened that foundation in recent sessions, from Hurricane Helene disaster recovery to permanent truck weight relief. Together, they reflect a sustained, bipartisan commitment to the policies, infrastructure and markets that Georgia forestry depends on.
“For generations, forestry has been the backbone of economies and communities across Southeast Georgia, and HB134 was built around what our industry needs to grow and thrive,” said Georgia State House Speaker Jon Burns. “It keeps capital moving toward the manufacturers willing to invest in rural Georgia, and supports the landowners, mill workers and hardworking Georgians throughout the supply chain who keep the industry moving forward. The House is committed to championing policies like HB 134 that keep our working forestlands strong for years to come.”■
John Casey is a strategic communications and public affairs professional advising clients across the nation. In his downtime, John can be found hunting and fishing at his home on his family’s centennial farm in Northwest Georgia.
“Forestry isn’t just an industry in our state, it’s a way of life for many in our rural communities,” said Walker. “When a mill closes, it doesn’t just affect one business —it impacts families, local economies and entire supply chains. By modernizing our tax structure and encouraging investment in forestry manufacturing, we’re laying the groundwork for long-term growth and stability in the communities that depend on this industry.”
What It Means for Rural Communities
The clearest beneficiaries are the rural counties where forestry jobs are concentrated and economic alternatives are limited. A single facility can anchor a community, and its reach extends well beyond the mill gate.
“You could have a plant with 150 people, and those are 150 families whose lives have changed because they have good jobs in rural Georgia,” Wilson said. “Then there’s the ripple effect across counties and communities — the growers, the people driving the trucks. It really is an industry that touches so many lives across the state.
”By weighting its incentives toward Tier1 and Tier 2 counties, HB 134 is designed to direct investment to the places that need it most — and to signal to companies weighing where to build that Georgia intends to grow with them.
Building on a Strong Foundation
Forestry supports more than 141,000 jobs in Georgia, contributes an estimated $59 billion annually to the economy, and maintains a footprint of more than 22 million acres of working forest — 92% of it privately owned. It is both an economic engine and a conservation success story, with Georgia’s working forests growing significantly more wood than is harvested each year.
HB 134 is the latest in a series of measures that have strengthened that foundation in recent sessions, from Hurricane Helene disaster recovery to permanent truck weight relief. Together, they reflect a sustained, bipartisan commitment to the policies, infrastructure and markets that Georgia forestry depends on.
“For generations, forestry has been the backbone of economies and communities across Southeast Georgia, and HB134 was built around what our industry needs to grow and thrive,” said Georgia State House Speaker Jon Burns. “It keeps capital moving toward the manufacturers willing to invest in rural Georgia, and supports the landowners, mill workers and hardworking Georgians throughout the supply chain who keep the industry moving forward. The House is committed to championing policies like HB 134 that keep our working forestlands strong for years to come.”■
John Casey is a strategic communications and public affairs professional advising clients across the nation. In his downtime, John can be found hunting and fishing at his home on his family’s centennial farm in Northwest Georgia.
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