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, Steven H., "Reforestation timing influences after-tax present value of costs" (1985). Faculty Publications. 145.