Expensing of Timber Growing Costs


Public Lands

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

House Committee on Ways and Means, Senate Finance Committee

$300 FY 23 Budget Score (in mil.)
$3,200 FY 23-32 Budget Score (in mil.)

This tax expenditure allows individuals and companies to deduct the costs of growing commercial timber stands immediately. This is an exception to general tax rules, which normally require companies to capitalize these costs (i.e. depletion or depreciation) over a number of years. Growing or production costs include indirect carrying costs, such as interest and property taxes, as well as direct costs, such as disease, pest control and clearing brush.

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