MFS received three USDA grants totaling $8.8 million in Inflation Reduction Act funding to contract professional forestry services for 200 or more Maryland forest landowners across 12 focus areas statewide. The program targets landowners with little prior experience in forest management, with a concentration on silvicultural practices that improve long-term forest productivity and habitat. All practices must be planned by a professional forester and implemented by a licensed contractor.

As part of this grant, MFS partnered with the American Bird Conservancy and others to apply a Dynamic Forest Blocks (DFB) framework to identify the best landscapes for concentrated investment and to recruit networks of adjacent landowners working toward shared management objectives. Watch the Dynamic Forest Blocks webinar here.

Contact your county forester to learn whether your property falls within a focus area.

The Woodland Incentive Program (WIP) provides financial assistance to eligible landowners for practices including tree planting, site preparation, and timber stand improvement. Properties must have at least 5 and no more than 1,000 forest acres with the potential to produce forest products. Landowners apply through their county forester, complete the approved practice, and receive reimbursement of up to 65% of total costs. Practices must be maintained for at least 15 years.

The Environmental Quality Incentive Program (EQIP) is authorized by the Farm Bill and administered by the USDA Natural Resources Conservation Service (NRCS). It provides cost-share payments, typically covering 50% of costs, to implement conservation practices on eligible land. EQIP's primary focus is livestock and agricultural production, but forestry practices may be included depending on state and local work group priorities. Eligible land types include cropland, pasture, and private non-industrial forestland.

For more information, visit the USDA NRCS website or contact your county forester.

The Conservation Reserve Enhancement Program (CREP) provides financial incentives to landowners who voluntarily retire environmentally sensitive agricultural land from production. In Maryland, CREP supports reforestation of riparian buffers and other marginal cropland adjacent to waterways. For more information, visit the CREP program page.

Several programs specifically support reforestation, including Healthy Forests Healthy Waters (HFHW). Visit our tree planting page for a full list.

The Forest Conservation and Management Agreement (FCMA) provides a reduced property tax assessment in exchange for a 15-year forest management agreement. The agreement must be prepared by a Licensed Forester and recorded in county land records. The FCMA offers a lower assessment rate than the Woodland Assessment Program, but noncompliance penalties are higher, including repayment of back taxes from the agreement start date. Agreements may be renewed in 15-year increments.

The Woodland Assessment Program (WAP) provides a reduced property tax assessment to landowners who manage their forestland under a 15-year Forest Stewardship Plan. It operates as part of Maryland's Agricultural Use Assessment. There is no fixed enrollment period; landowners may enter or leave at any time. The WAP's assessment rate and associated fees are somewhat higher than the FCMA, but noncompliance is limited to loss of the agricultural assessment rather than back tax liability. Sale of property enrolled in the WAP may trigger the Agricultural Transfer Tax (ATT).

For more information, visit the SDAT program page or contact your county forester.

The Income Tax Modification Program, commonly called Tax Mod, allows landowners to deduct twice the cost of reforestation and timber stand improvement from their federal adjusted gross income for Maryland income tax purposes, less any cost-share assistance received through other programs such as WIP or EQIP.

To be eligible, landowners must own or lease between 3 and 1,000 acres of forestland capable of producing more than 20 cubic feet of wood per acre per year, used primarily for growing and harvesting trees. Christmas tree and ornamental operations are not eligible. The deduction is reported as a subtraction on the Maryland income tax return. Practices must be maintained for at least 15 years, or the tax savings must be repaid. Approximately 30 to 50 landowners participate annually.

Program forms and references:

• Income Tax Modification Regulations (COMAR 08.07.03.04)
• Guidelines for Income Tax Modification Program
• Tax return form (DNR Form 393)
• Instructions for completing DNR Form 393

Landowners enrolled in a Forest Conservation and Management Agreement who file Maryland taxes using Form 502SU may claim a subtraction under Line 13, code letter kk: qualified conservation program expenses up to $500 for an application approved by DNR to enter a Forest Conservation and Management Plan. Check with your tax consultant for details.