Income tax; increase amount of credit for approved reforestation practices.
Summary
Senate Bill 2816 would amend Mississippi’s reforestation income tax credit statute to increase the value of the credit available for approved reforestation practices on eligible nonindustrial private lands. The bill keeps the basic structure of the existing credit: eligible owners may claim a credit equal to the lesser of 50% of actual approved reforestation costs or 50% of the average approved cost established by the Mississippi Forestry Commission, for practices such as tree planting, mixed-stand regeneration, direct seeding, and post-planting site preparation.
The main change is to raise the annual cap on credit use from $10,000 to $20,000 and to raise the lifetime cap from $75,000 to $125,000. The bill also preserves current rules that require a forester-prepared reforestation plan and written verification of completion, and it continues to bar the credit when the same costs are already covered by state or federal cost-share assistance, except for taxpayers below the federal earned income credit income threshold. The act would take effect July 1, 2025.
Impact
SB2816 would directly amend Section 27-7-22.15 of the Mississippi Code, increasing the amount of the income tax credit available for reforestation while leaving the underlying eligibility criteria and documentation requirements intact. The bill affects private landowners, groups, and associations with eligible nonindustrial forest lands, as well as the Mississippi State Tax Commission and Mississippi Forestry Commission, which administer and verify the credit. By increasing both the annual and lifetime caps, the measure would expand the potential tax benefit for forest landowners investing in timber stand establishment and related site preparation.
Sentiment
No committee transcript or recorded vote information is provided, so there is no documented floor or committee debate to gauge formal sentiment. Based on the bill text and caption, the measure appears to be a targeted tax incentive for forestry and land management, which typically suggests support from forestry and rural landowner interests. The absence of recorded opposition or amendments in the provided materials means sentiment cannot be assessed beyond the bill’s apparent pro-forestry policy direction.
Contention
The principal policy issue in the bill is fiscal: increasing the annual and lifetime credit caps would reduce state income tax revenue relative to current law, which could prompt concern from budget-focused lawmakers. Another possible point of discussion is whether the higher caps disproportionately benefit larger private landowners, since the credit is limited to eligible owners of nonindustrial private lands and excludes corporate manufacturers and utilities. The bill also preserves the existing prohibition on double-dipping with state or federal cost-share assistance, except for lower-income taxpayers, which may be a point of interest for both equity and program-integrity considerations.
Requires permit and compensatory reforestation plan for development projects that result in deforestation; establishes grant program for reforestation activities by private landowners; establishes "State Compensatory Reforestation Fund."
Urging The Department Of Land And Natural Resources To Work With Its Partners To Increase Investment In Policies, Incentives, Workforce, And Nursery Capacity To Reforest Hawaii's Public And Private Lands.