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Public Law 96-451 provides federal income tax incentives for reforestation. Taxpayers are allowed an investment tax credit in the year reforestation costs are incurred and deductions of one-fourteenth of reforestation costs on their first tax return, one-seventh on each of their next six tax returns, and one-fourteenth on their eighth tax return. The amount amortized is 95 percent of costs if a 10-percent tax credit is claimed or 100 percent of costs if an 8- percent credit is chosen. The credit and deductions can be applied for up to $10,000 of reforestation costs each year.


Bullard, S.H. 1985. Reforestation timing influences after-tax present value of costs. Journal of Forestry 83(9):561.



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