Amortization and Expensing of Reforestation Expenditures


Public Lands

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

Senate Finance Committee

$260 FY 16 Budget Score (in mil.)
$2,600 FY 16-25 Budget Score (in mil.)

This provisions allows for the deduction of up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. The remaining costs in excess of the deduction can be amortized over an 84-month period. There is no limit on the amount of the amortization deduction. Reforestation costs are the direct costs of planting or seeding for forestation or reforestation. Qualifying costs include: site preparation, seedlings, labor, tools, and depreciation on equipment used in planting and seeding. Qualified timber property is property that: contains trees in significant commercial quantities; is located in the United States; is held for the growing and cutting of timber used in, or sell for use in, the commercial production of timber products; and consists of at least one acre planted with tree seedlings in the manner normally used in forestation or reforestation.

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