Virginia Riparian Forest Buffer Tax Credit

A Virginia state tax credit for landowners who harvest timber and leave a forested streamside buffer. The credit equals 25% of the value of timber retained in the buffer, up to $17,500 in the tax year the harvest is completed, with unused credit carried forward up to five years. Buffers must be 35–300 feet wide and keep at least 50% crown cover.

• Individuals, partnerships, S-corporations, family partnerships, grantors, trusts, and limited liability corporations; must be a Virginia tax-paying landowner

• The tract must be at least 10 acres in size (including contained buffers)

• The harvesting operation must be complete to qualify

• Buffer must be at least 35 feet wide and no greater than 300 feet wide, with at least 50% of the crown cover remaining after harvest; all waterways of the Commonwealth are eligible

25% of retained-timber value, maximum $17,500 per tax year; 5-year carryover; application fee required.

Published amounts: The amount of the credit is equal to 25% of the value of the timber retained as a buffer up to a maximum of $17,500 in the tax year in which the harvesting operation is completed. Any unused portion of the tax credit may be carried over for up to five additional years.

Provide to the local DOF forester: completed Application for the Riparian Forest Buffer Tax Credit (Form 18.8), application fee, proof of land ownership (and ownership percentages if multiple owners), a copy or proof of a DOF-approved Forest Stewardship Management Plan, the value of timber retained in the buffer (cruise or prorated average per-acre value), a description and map of the buffer(s). DOF provides the final harvest inspection.

Deadline text on the page: DOF financial assistance table: Continuous Sign-up. The applicant’s harvesting operation must be complete to qualify; credit applies to the tax year in which the harvest was completed.