COLUMBUS – Landowners interested in creating a forest on their property may be able to take a direct deduction from their federal taxes this year by planting trees, according to state foresters with the Ohio Department of Natural Resources.
“The [Internal Revenue Service] allows for a 10 percent tax credit on the cost of reforestation projects which can be taken directly off an individual’s federal income taxes,” said John Dorka, chief of the department’s Division of Forestry.
“For example, someone spending $2,000 to establish a forest on their property may be able to directly deduct $200 from the amount of federal taxes they owe.”
Deduction. In addition to the tax credit, Dorka says landowners can deduct up to 95 percent of certain reforestation expenses over an eight-year period.
Projects that the revenue service approves for the reforestation tax credit include: the purchase of seedlings, labor and tools, site preparation and depreciation on equipment associated with tree planting.
More information. Detailed information on the tax-saving programs is available through the U.S. Forest Service’s Web site at www.fs.fed.us/spf/coop.
“Investing in forests is good business and good for the environment,” Dorka said. “But forestry is a long-term investment and these tax-savings options help individuals to get started.”
Consultations. State foresters can assist in establishing forests through advice offered by on-site consultations with state service foresters and through the sale of seedlings from the Marietta Tree Nursery.
Ohio Department of Natural Resources is the largest producer of tree seedlings in the state, producing more than three million trees each year for reforestation efforts.
More than a dozen varieties of trees are still available for sale, including white pine, silky dogwood, baldcypress, sugar maple and sycamore.
Tree specifics. The trees, available in bundles of 50, are less than 2 years old and bare rooted.
A minimum order of 250 trees is required. Selecting the proper type of tree for a particular location and soil characteristic is essential for a successful planting.
Department service foresters are available to help landowners in choosing the right trees for their particular objectives.
This assistance is especially recommended for plantings in excess of three acres.
For more information call 877-691-8733 or visit www.ohiodnr.com.
Related Links:
U.S. Forest Service: www.fs.fed.us/spf/coop.
