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Conservation Incentives

MCLI Recommendation: “Through tax deductions and tax credits, the federal government could provide significant incentives to corporations and private individuals who manage forestland to sequester carbon.”

LPDD Recommendation: “Congress and state legislatures should consider a modest carbon tax or GHG cap-and-trade program that recognizes private forest carbon capture as an emission offset, exempts emissions from sustainably produced biomass, and also imposes a tax burden on those who deforest their land through conversion.”

LPDD Recommendation: “Congress should impose a meaningful carbon tax (or auction) and create a CO2 trading regime in which sequestration in forests, soils, and forest products is specifically recognized.”

LPDD Recommendation: “Through tax deductions and tax credits, state and local governments could provide significant incentives to corporations and private individuals who manage forestland to sequester carbon.”

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19 resources

Example States and State Governments

RGGI Forest Offset Projects and Biomass Exemption

The Regional Greenhouse Gas Initiative, a carbon cap-and-trade program amongst Northeastern states, has established offset credits Afforestation and Forestry. Allowances are awarded based on the addit...

Example States and State Governments

Maine Tree Growth Tax Law

In Maine, property taxes for forest lands are based on the value of the land in its current use, rather than market value. This method allows for valuation of forestland based on the actual use of the...

Example Executive Branch

IRS Conservation Contributions.

Under the IRC §170(f) and (h), a qualified conservation contribution in the form of a donation of land or a conservation easement to a 501(c)(3) organization such as a land conservancy or a state or l...

Example States and State Governments

Kentucky Forest Stewardship Incentives Fund

Kentucky’s forest stewardship incentives fund is used to provide financial assistance to landowners for development of management plans and for practices including reforestation, afforestation, soil a...

Example States and State Governments

California Cap-and-Trade Forest Offset Projects and Biomass Exemption

The California economy-wide cap-and-trade program established under the California Global Warming Solutions Act authorizes the creation of forest offsets. The California Air Resources Board has adopte...

Resource States and State Governments

Report, Seeding Capital: Policy Solutions to Accelerate Investment in Nature-Based Climate Action

This June 2021 report from Berkeley Law, UCLA, and Bank of America addresses policy mechanisms to drive investment in negative emissions from land-use, improvement of natural carbon sinks, and agricul...

Example States and State Governments

North Carolina property tax reduction for forest conservation

In North Caroline, property taxes for forest lands are based on the value of the land in its current use, rather than market value. This method allows for valuation of forestland based on the actual u...

Example States and State Governments

New Jersey RPS Sustainable Biomass Requirements

New Jersey’s Renewable Portfolio Standard requires a sustainability determination to qualify biomass among the technologies that will support the generation of renewable energy credits.

Resource States and State Governments

Maryland Loan Guarantees for Natural Climate Solutions

In 2021, Maryland passed HB 94, creating the Water Quality Revolving Loan Fund. In January 2023, using that fund, Maryland became the first state to approve a loan guarantee to finance “natural climat...

Example States and State Governments

North Carolina Forest Development Act

A voluntary cost sharing program to “provide financial assistance to eligible landowners to increase the productivity of the privately-owned forests of the State.” Along with Legislative appropriation...

Example States and State Governments

Michigan Qualified Forest Program

Michigan’s Qualified Forest Program is a program under which a landowner may execute a Qualified Forest Affidavit on land that qualifies to be enrolled. By executing and recording the Affidavit, the l...

Example States and State Governments

Georgia Forest Land Protection Act

In Georgia, private land used for “good faith subsistence or commercial production of trees, timber or other wood and wood fiber products” is exempt from property taxes. Eligible property may have sec...

Example States and State Governments

Colorado Conservation Easement Tax Credit

Colorado has offered a state income tax credit for the donation of conservation easements since 2000. Federal requirements for charitable contributions are used to determine eligibility for the state ...

Example States and State Governments

Virginia Land Preservation Tax Credit

Virginia allows an income tax credit for 40 percent of the value of donated land or conservation easements. Taxpayers may use up to $20,000 per year through 2020 and $50,000 per year in subsequent tax...

Example States and State Governments

Oregon Forest Resource Trust

Oregon’s forest resource trust provides financial and technical assistance to qualified private and local government owners to plant trees and improve management of forestlands for timber production a...

Example States and State Governments

Minnesota Sustainable Forest Incentive Act

In 2001, the Minnesota Legislature created an incentive program that annually pays enrolled landowners $7 per acre of forested land to offset property taxes. Known as the sustainable forest incentive ...

Example States and State Governments

Oregon forestry offsets

Oregon does not have a market-based emissions reduction program, but the state has authorized forest carbon offsets. Oregon permits the state forester to develop contracts with non-federal forest land...

Example States and State Governments

Vermont Use Value Appraisal Program

In Vermont, property taxes for forest lands are based on the value of the land in its current use, rather than market value. This method allows for valuation of forestland based on the actual use of t...

Resource Foreign

Model Law on Tree Planting Incentives

The Chancery Lane Project, a collaborative effort of UK lawyers to develop new contracts and model laws to help fight climate change, has published a model law creating a long-term government incentiv...