Cost-share Options and Tax Incentives

A tree never hits an automobile except in self-defense.
- Author, Unknown

Cost-share Options and Tax Incentives

Numerous cost-share options and tax incentives exist for using reforestation aides like tree shelters, described below. Because the cost-share percentages and requirements change frequently and all expenses and products must be approved before purchased and practices implemented, Southwest Badger RC&D strongly encourages you to consult with your county forester, Farm Service Agency, and Natural Resource Conservation Service (NRCS) agent about any changes in these incentives and whether you qualify. Below are brief summaries and an example of several programs which may be available to you.

Conservation Reserve Enhancement Program (CREP)
This United State Department of Agriculture program, administered by the Farm Service Agency, offers 50 to 100 percent cost sharing for the use of tree shelters (depending on when shelters are added to the trees) as well as rental payments based on contracts of 10 to 15 years in duration to remove lands from agricultural production. Actual 100 percent cost share level is split between federal and state funding sources. Upon review and approval by the FSA, the landowner's cropland or pasture where reforestation is to take place must have been planted or considered planted to an agricultural commodity crop two of the last five years, and is physically and legally capable of being planted to an agricultural commodity. The CREP limits cost-share for tree shelters to no more than 150 trees per acre. The maximum cost shares earned is $50,000 per year. These cost-share terms are subject to change.
Example:
Landowner Jones plants 20 acres of pasture adjacent to a stream in mixed hardwoods and decides to add tree shelters to each of his seedlings, planting 200 tree seedlings per acre. With FSA approval, Jones would receive cost sharing of 100 percent for tree shelters placed on 150 tree seedlings (maximum allowed) for each acre, or 20 x 150 = 3,000 total tree shelters at $4/each tree shelter. Cost share would return Jones with a check for $12,000 for 3,000 tree shelters. The remaining 50 tree shelters per acre would be at Jones' own expense.
Continuous Conservation Reserve Program (Continuous CRP)
This United State Department of Agriculture program, administered by the Natural Resource Conservation Service (NRCS) and the Farm Service Agency (FSA), offers 50 percent cost sharing for the use of tree shelters. Upon review and approval by the NRCS, the landowner's cropland or pasture where reforestation is to take place must have been planted or considered planted to an agricultural commodity crop two of the last five years, and is physically and legally capable of being planted to an agricultural commodity. The Continuous CRP limits cost-share for tree shelters to no more than 150 trees per acre. The maximum cost shares earned is $50,000 per year. These cost-share terms are subject to change.
Example:
Landowner Jones plants 20 acres of pasture adjacent to a stream in mixed hardwoods, planting 200 tree seedlings per acre. With NRCS approval, Jones would receive cost sharing of 50 percent for tree shelters placed on 150 tree seedlings (maximum allowed) for each acre, or 20 x 150 = 3,000 total tree shelters at $4/each tree shelter. Cost share would return Jones with a check for $6,000 ($12,000 total cost for cost sharing tree shelters x 50-percent cost share amount = $6,000) for 3,000 tree shelters. The remaining 50 tree shelters per acre would be at Jones' own expense.
Wisconsin Forest Landowner Grant Program (WFGLP), for Wisconsin residents only
This State of Wisconsin program, administered by the Wisconsin Department of Natural Resources, offers 50 percent cost sharing for the use of tree shelters. Upon review and approval by the DNR county forester, the landowner's property where reforestation is to take place using the tree shelters must be enrolled in either the Managed Forest Law with an approved Management Plan or have an approved Stewardship Plan and have reforestation activities explicitly written into the plan in order to qualify for grant assistance. The WFGLP limits cost-share for tree shelters to no more than 50 trees per acre. The maximum cost shares earned is $10,000 per year. These cost-share terms are subject to change.
Example:
Landowner Jones plants 20 acres of pasture adjacent to a stream in mixed hardwoods, planting 200 tree seedlings per acre. With Wisconsin DNR county forester approval, Jones would receive cost sharing of 50 percent for tree shelters placed on 50 tree seedlings (maximum allowed) for each acre, or 20 x 50 = 1,000 tree shelters at $4/each. Cost share would return Jones with a check for $2,000 ($4,000 total cost for cost sharing tree shelters x 50-percent cost share amount = $2,000) for the 1,000 tree shelters. The remaining 150 tree shelters per acre would be at Jones' own expense.
Reforestation Tax Incentives and Tips (Federal)
State Forestry Tax Issues and Incentives

There are also numerous legal and tax implications for reforestation efforts and accounting for investments in land mananagement practices, including the ability of landowners to deduct the cost of tree shelters, tree mats, deer repellents and other reforestation aides used in managing their forest:

Wisconsin

Minnesota

Michigan

Protect your trees. Select from the growing list of reforestation aides offered by Southwest Badger RC&D, and increase your chances of a prosperous forest in the years to come.

Southwest Badger
Resource, Conservation & Development Council, Inc.
150 W. Alona Ln.
Lancaster WI 53813
Tel: 608-723-6377 x136
E-mail: swbadger@tds.net
Website: www.treeprotection.org