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Proposed Tax Strategies for Forestland Conservation

Proposed Tax Strategies for Forestland Conservation. Proposed Tax Strategies for Forestland Conservation. Forest Service Tax Team is not only involved in tax education Last FY we recommended to the Forest Service Management Team several tax strategies for conservation of private forestland.

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Proposed Tax Strategies for Forestland Conservation

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  1. Proposed Tax Strategies for Forestland Conservation

  2. Proposed Tax Strategies forForestland Conservation • Forest Service Tax Team is not only involved in tax education • Last FY we recommended to the Forest Service Management Team several tax strategies for conservation of private forestland

  3. Proposed Tax Strategies forForestland Conservation Two recommendations already have been acted upon: • Make permanent the Pension Preservation Act of 2006 (PPA; P.L. 109-280) incentives for donation of conservation easements • (PPA increased deduction for qualifying donations of conservation easements to 100 percent of AGI for farmers and …

  4. Proposed Tax Strategies forForestland Conservation … ranchers or 50 percent of AGI for other individual taxpayers, and extended the carryover period from 5 to 15 years, from Dec. 31 2005 through Dec. 31, 2007) • Food, Conservation, and Energy Act of 2008 (FCEA; P.L. 110-246) extended incentives through Dec. 31, 2009

  5. Proposed Tax Strategies forForestland Conservation • Enact tax incentives for producers of biofuel feedstocks • FCEA created Biomass Crop Assistance Program – administered by FSA – which authorizes cost-shares up to 75 percent for site preparation and planting of trees for woody biomass, plus up to 15 years of annual payments

  6. Proposed Tax Strategies forForestland Conservation Other recommendations include: • Allow the creation of tax exempt bonds to purchase forestland for conservation purposes • Increase availability of funding to acquire forestland for conservation purposes • Minimal

  7. Proposed Tax Strategies forForestland Conservation • Develop a form of Family Limited Partnership or Limited Liability Company specifically for family farms and forests • Ensure that working lands qualify for business-oriented tax provisions and facilitate their transfer from one generation to another • Minimal

  8. Proposed Tax Strategies forForestland Conservation • Extend tax incentives for farmers, ranchers, and fishermen – e.g., income averaging, and enhanced exclusion provisions for cost-share payments – to forest owners • Income tax parity for owners of all types of working lands • Minimal

  9. Proposed Tax Strategies forForestland Conservation • Extend tax incentives for production of commercial forest products to ecosystem services for which no markets currently exist • Acknowledge the value of ecosystem services and relieve the financial burden on owners engaged their production • Large – Traditionally, a profit motive is required to qualify for tax incentives

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