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1.1 Federal Income Tax Incentives

· Since the Federal tax code was enacted in 1913, provisions have been added to encourage improved management and stewardship of private forest land, but forest owners and policymakers believe additional incentives still are needed.

· Incentives that alter the tax treatment of reforestation expenses have the potential to improve management and stewardship on nonindustrial private forests, because they are specifically linked to reforestation of harvested areas. Examples of such incentives include immediate deduction of reforestation expenses, enhanced amortization provisions, and Green Accounts.

· Extending tax provisions and incentives already available to owners who manage their forest holdings for a profit to owners who manage primarily for environmental or social purposes would encourage and enable additional owners to make stewardship investments.