Expensing of Timber Growing Costs


Public Lands

Subsidy Type

Tax Expenditure

Committees of Jurisdiction

Senate Finance Committee

$300 FY 16 Budget Score (in mil.)
$3,000 FY 16-25 Budget Score (in mil.)

This expenditure allows individuals and companies to immediately deduct the costs of timber growing expenses. 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 and pest control and clearing brush.

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