Tax Incentive
FCMA
Forest Conservation and Management Agreement: This program currently has property tax assessments for woodland at $125.00 per acre assessed value. The minimum woodlot size is five acres (six acres with house on property) and the minimum time limit for the agreement is 15 years. FCMA’s are inspected for compliance once every five years for a fee of $100.00 per inspection. Entrance fees for the FCMA are based on assessed property values with a minimum $100.00 entrance fee plus a recordation fee of $40.00. For more information click HERE.
Forest Conservation and Management Agreement: This program currently has property tax assessments for woodland at $125.00 per acre assessed value. The minimum woodlot size is five acres (six acres with house on property) and the minimum time limit for the agreement is 15 years. FCMA’s are inspected for compliance once every five years for a fee of $100.00 per inspection. Entrance fees for the FCMA are based on assessed property values with a minimum $100.00 entrance fee plus a recordation fee of $40.00. For more information click HERE.
Woodland Assessment
Counties allow the use of a Forest Stewardship Plan prepared by a licensed forester as indication of ongoing forestry activities as long as forestry management in included in the stewardship plan. As such, property tax assessments will be based on the woodland tax rate for the county. The woodland tax rate is currently assessed at $187.50 per acre. The county assessor will require a letter of inspection from a forester every three years. It must state the forestry work in the plan has been followed. If this service is provided, there is a $50 to $100.00 fee depending on acreage for each inspection and the follow up letter to the county assessor. There are no entrance or recordation fees associated with this program.
Counties allow the use of a Forest Stewardship Plan prepared by a licensed forester as indication of ongoing forestry activities as long as forestry management in included in the stewardship plan. As such, property tax assessments will be based on the woodland tax rate for the county. The woodland tax rate is currently assessed at $187.50 per acre. The county assessor will require a letter of inspection from a forester every three years. It must state the forestry work in the plan has been followed. If this service is provided, there is a $50 to $100.00 fee depending on acreage for each inspection and the follow up letter to the county assessor. There are no entrance or recordation fees associated with this program.
MD Income Tax Modification
The program allows woodland owners to deduct double the cost for reforestation and timber stand improvement practices from the Federal adjusted gross income on the MD tax return. This deduction is applicable for approved practices on properties with a total forest ownership of 10 to 500 acres. For more information click HERE.
The program allows woodland owners to deduct double the cost for reforestation and timber stand improvement practices from the Federal adjusted gross income on the MD tax return. This deduction is applicable for approved practices on properties with a total forest ownership of 10 to 500 acres. For more information click HERE.
Public Law 96-451 - Begins on page 7
This Federal law allows for a 10% investment tax credit and a seven-year amortization for reforestation projects.
This Federal law allows for a 10% investment tax credit and a seven-year amortization for reforestation projects.
