The Mississippi Reforestation Tax Credit provides a Mississippi income tax credit up to 50% of the cost of approved hardwood and pine reforestation practices. The tax credit promotes reforestation on private, nonindustrial lands. The credit applies only to individuals or groups of private nonindustrial landowners. There is a lifetime limit of $10,000. Any unused tax credit may carry over into future years. Landowners must have a reforestation plan prepared by a graduate or registered forester. The cost of planting orchards, Christmas trees, or ornamental trees does not qualify.
Acreage enrolled in a state or federal incentive program is not eligible for the tax credit. However, certain landowners may be eligible for the tax credit in addition to incentive payments. Those landowners whose adjusted gross income is less than the federal Earned Income Credit level may be eligible for this provision. See a tax advisor for further information.
The work must be verified by the forester on Mississippi tax form 80-315 as completed according to the prepared plan and submitted to the state Tax Commission by the landowner in order to qualify. Contact the Mississippi Tax Commission for a copy of tax form 80-315 and for additional tax-related information.
See also: Forestry Assistance Programs and Tax Credit Options (MFC pub#95)
Complete description of the law and forms available at: http://www.mstc.state.ms.us/downloadforms/indiv/03indiv.htm
Additional tax information for your forestland can be viewed at www.timbertax.org.