Skip to Main Content
U.S. Forest Service
Caring for the land and serving people

United States Department of Agriculture

Home > Search > Publication Information

  1. Reforestation tax incentives under the American jobs creation act of 2004

    Share via EmailShare on FacebookShare on LinkedInShare on Twitter
    Dislike this pubLike this pub
    Author(s): Thomas J. Straka; John L. Greene
    Date: 2007
    Source: South. J. Appl. For., Vol. 31(1): 23-27
    Publication Series: Scientific Journal (JRNL)
    PDF: Download Publication  (1.28 MB)

    Description

    The American jobs creation act of 2004 made significant changes in the reforestation tax incentives available to private forest owners. Owners can now deduct outright reforestation costs up to $10,000 per year for each qualifying timber property and amortize any additional amount over 8 tax years. to assess the financial benefit the new incentives provide to forest owners, the authors developed spreadsheets that calculate after-tax Bare Land Value (BLV) for a representative southern pine management plan under three tax situations: no reforestation incentives, the incentives under previous law, and the incentives under the current law. They found that compared to no tax incentive, the current law chiefly benefits owners with high non-timber income, increasing BLV by an amount equivalent to a reforestation cost share of roughly 25 to 30% as opposed to 5 to 15% for owners with low or median income. Compared to previous law, the current law chiefly benefits owners of large forest holdings, increasing BLV by an amount equivalent to a reforestation cost share of roughly 10 to 20%. For owners of small forest holdings, however, BLV decreased by an amount equivalent to a 5 to 10% increase in reforestation costs. These findings are significant as Congress likely intended that the new incentives continue to benefit primarily "Small woodland owners" with modest incomes and forest holdigns

    Publication Notes

    • You may send email to pubrequest@fs.fed.us to request a hard copy of this publication.
    • (Please specify exactly which publication you are requesting and your mailing address.)
    • We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
    • This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.

    Citation

    Straka, Thomas J.; Greene, John L. 2007. Reforestation tax incentives under the American jobs creation act of 2004. South. J. Appl. For., Vol. 31(1): 23-27

    Keywords

    reforestation, income tax, incentive, cost share, financial analysis

    Related Search

    XML: View XML
Show More
Show Fewer
Jump to Top of Page
https://www.fs.usda.gov/treesearch/pubs/29051