This bill makes it easier and more affordable for family forest owners to replant trees after natural disasters or normal forestry operations. Right now, the tax code limits how much forest owners can deduct for reforestation costs each year. This bill roughly triples those limits—from $10,000 to $30,000 for individual owners and from $5,000 to $15,000 for married couples filing separately. These limits will automatically increase each year to keep up with inflation starting in 2027.

The bill also creates a special new tax break specifically for reforestation after major disasters like hurricanes, wildfires, or floods that have been officially declared by the President. Forest owners affected by these disasters can deduct up to $500,000 per property (or $250,000 if married filing separately) for replanting costs, with an overall cap of $1,000,000 across all their properties. This applies to trees damaged or destroyed within the past five years. However, if you sell the property within 10 years, you'll have to pay back some of those tax benefits as regular income—unless you're selling because of another disaster, condemnation, or death.

The goal is to help family forest owners afford to replant their forests more quickly after disasters, supporting both the timber industry and forest conservation. The changes take effect for tax years starting after December 31, 2026.