Oregon Forest Conservation Tax Credit

An Oregon tax credit for small forestland owners who leave a wider unharvested buffer along streams than the small-forestland minimum option requires. By following standard-practice harvest rules and agreeing to limit harvest in that conservation area for 50 years, the owner gets a credit equal to the stumpage value of the timber left standing plus appraisal and deed-filing costs. The credit can offset personal or corporate income or excise tax, in one year or spread over many.

• Small forestland owner: less than 5,000 acres of Oregon forestland; under 2 million board feet average annual harvest in the past 3 years and expected for the next 10

• Submits a notification of operation for a Type 1, 2 or 3 harvest next to an eligible stream (Type F, SSBT or N; Type D and Type 4 harvests not eligible)

• Agrees to follow standard practice harvesting rules and tells ODF they want the credit

50-year harvest limitation in the forest conservation area via deed restriction. Credit can be used as a lump sum, spread over tax years, or held; transferable only on death; stays with original owner if land is sold.

Published amounts: The tax credit is equal to the stumpage value of the timber left unharvested between where you could have harvested using the minimum option and where you did harvest using the standard practice harvesting rules (the forest conservation area), plus the appraisal costs for determining stumpage value and the cost of filing a deed restriction with the county.

Tell ODF you want the credit when notifying for the harvest; after the SFO Office verifies eligibility, submit stumpage value documentation, appraisal costs and deed-restriction filing costs within 90 days of harvest completion. ODF issues a tax credit certificate; then record a deed restriction with the county clerk.

Deadline text on the page: Beginning Jan. 1, 2024 ... Documentation must be submitted within 90 days of completion of the harvest.