Tax Guidelines for Forestry Programs

Forest Health Protection Cost Share

The IRS has approved that the Forest Health Protection cost share program is eligible for income exclusion under Section 126 of the Internal Revenue Code (Revenue Ruling 2009-23, August 10, 2009, IRB 2009-32). This determination allows forest landowners to exclude part or all of the cost share payment(s) received under this program from their income provided they also meet the capital expenditure requirement under Section 126. Prior to this ruling, the payments were not excludable and were thus taxable as income for the taxpayer.