Regenerating a forest after a timber harvest can be an expensive proposition. Congress has passed laws to encourage reforestation, including cost-sharing and income tax incentives. The federal law on income tax incentives changed about five years ago,but many forest landowners do not understand the current tax incentives that allow for quick recovery of reforestation costs. Often those in the timber harvesting industry are asked to explain the current tax provisions for reforestation activities. The federal tax provisions for reforestation are explained below in addition to those for some states that have their own cost-share and tax incentives.
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