COLUMBUS, OH 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 (ODNR).
The IRS allows for a 10 percent tax credit on the cost of reforestation projects which can be taken directly off an individuals federal income taxes, said John Dorka, chief of the ODNR 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.
In addition to the tax credit, Dorka advises landowners they can deduct up to 95 percent of certain reforestation expenses over an eight-year period.
Projects that the IRS approves for the reforestation tax credit include: the purchase of seedlings, labor and tools, site preparation and depreciation on equipment associated with tree planting.
Detailed information on the tax-saving programs is available through the U.S. Forest Services web site at: www.fs.fed.us/spf/coop
Investing in forests is good business and good for the environment, said Dorka. But forestry is a long-term investment and these tax-saving options help individuals to get started.
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. ODNR is the largest producer of tree seedlings in the state, producing more than 3,000,000 trees each year for reforestation efforts.
Selecting the proper type of tree for a particular location and soil characteristic is essential for a successful planting. ODNR 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.
Since state reforestation efforts began more than 80 years ago, ODNR foresters have planted more than a one-half billion trees in Ohio.
For specific information about the availability of various tree species and their prices, or for a list of service forester office locations (by county) and telephone numbers, contact the ODNR Division of Forestry toll free at 1-877-691-8733 or on the Internet at ohiodnr.com