AN ACT TO AMEND SECTION 27-7-22.15, MISSISSIPPI CODE OF 1972, TO INCREASE THE AMOUNT OF THE INCOME TAX CREDIT AUTHORIZED FOR APPROVED REFORESTATION PRACTICES; AND FOR RELATED PURPOSES.
Impact
If enacted, the bill will substantially raise the maximum amount of the income tax credit that an eligible owner can claim in a single tax year. The proposed increase means eligible owners could receive a credit of up to $20,000, with a lifetime cap of $125,000, effectively encouraging more robust participation in reforestation activities. As a result, the bill could stimulate economic activity related to forestry, such as the purchase of seedlings and services from professional foresters, further bolstering the state's forestry industry.
Summary
Senate Bill 2861 seeks to amend Section 27-7-22.15 of the Mississippi Code of 1972 by increasing the income tax credit allocated for approved reforestation practices. This legislation aims to support individuals and groups engaged in reforestation efforts, which have significant environmental benefits such as carbon sequestration and habitat restoration. The bill defines a range of approved reforestation practices, including tree planting, direct seeding, and site preparation, emphasizing its connection to sustainable forestry and resource management.
Contention
Notably, while the bill enjoys broad support for its environmental benefits, there may be concerns regarding fiscal implications and the qualifications for receiving the tax credit. Questions could arise about the funding required to support these tax credits, which are essentially foregone revenues for the state. Additionally, the stipulation that individuals must maintain a verified reforestation plan and engage graduate foresters in the process has the potential to limit the credit's accessibility, particularly for smaller or less-resourced landowners.
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.