Public Lands

Timber Purchaser Election Road Construction

The Timber Purchaser Election Road Construction allows small businesses to pay the Forest Service to construct infrastructure like roads and bridges necessary to remove timber and other forest products out of the revenue from future logging. Unfortunately, the costs charged by the Forest Service do not cover the costs of the program and Congress has […]

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Special Rules for Mining Reclamation Reserves

This provision allows taxpayers to deduct the current-value equivalent of estimated future reclamation and closing costs for mining and solid waste disposal sites before these costs have actually been incurred. Standard treatment would be that these costs cannot be deducted until economic performance actually occurs and so results in tax deferral.

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Forest Service Salvage Fund

This program allows the Forest Service to sell timber from public forests that have been damaged by fire, insects, or disease at a loss to taxpayers. The proceeds are diverted to a dedicated fund that is then used to administer the program and provide engineering support for future timber salvaging operations.

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Fair Value Grazing Fees

The formula for determining the grazing fee for lands managed by the Bureau of Land Management (BLM) and the Forest Service (FS) uses a base value that is adjusted annually by the lease rates for grazing on private lands, beef cattle prices, and the cost of livestock production. By law, the grazing fee per animal […]

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Expensing of Timber Growing Costs

This expenditure allows individuals and companies to immediately deduct the costs of timber growing expenses. This is an exception to general tax rules, which normally require companies to capitalize these costs (i.e. depletion or depreciation) over a number of years. Growing or production costs include indirect carrying costs, such as interest and property taxes, as […]

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Amortization and Expensing of Reforestation Expenditures

This provisions allows for the deduction of up to $10,000 ($5,000 if married filing separately; $0 for a trust) of qualifying reforestation costs paid or incurred after October 22, 2004, for each qualified timber property. The remaining costs in excess of the deduction can be amortized over an 84-month period. There is no limit on […]

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1872 Mining Law Reform

The 1872 Mining Law charges mining companies no royalties for the minerals they remove from federal lands and allows them to purchase federal land for $5 per acre (a weak annual moratorium on purchases has been put in place, but there is no permanent fix). Taxpayers receive nothing for the approximately$1 billion worth of minerals […]

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