Income Tax Modification Program
Purpose: Provide financial incentive for forest landowners to manage their forest land by allowing them to deduct double the cost of reforestation and timber stand improvement from their federal adjusted gross income for Maryland income tax purposes.Scope: Participants must own or lease between 10 to 500 acres of forest land capable of growing more than 20 cubic feet of wood per acre per year, which is available for the primary purpose of growing and harvesting trees. Christmas tree and ornamental tree operations are not eligible. Only forest management practices installed on 10 to 100 acres may receive the tax modification in any one year.
Description: This program allows eligible participants to deduct double the cost of reforestation and timber stand improvement practices, less any cost-share assistance received through other programs (FLEP, WIP, EQIP, etc.). This is reported on the Maryland tax return as a subtraction from the federal adjusted gross income. Practices receiving the modification must remain in effect for at least 15 years. Periodic inspections will occur. If they are not maintained, the tax savings must be repaid.
Annual Accomplishments: Approximately 30-50 landowners participate annually.
Contact Person:
Your local DNR forester or Dan RiderMaryland DNR Forest Service
580 Taylor Avenue
Annapolis, Maryland 21401
410-260-8583
E-mail: drider@dnr.state.md.us
The Maryland Department of Natural Resources Forest Service wants to know if this service is helpful
for you or your company, please send comments and/or suggestions to Maryland DNR.
Forestry Links
Forestry Home
Glossary
Forestry Acronyms
Email DNROther DNR info
DNR home page
Fisheries
Bays & Streams
Wildlife & Heritage