Taxation and other Economic Strategies that Affect the Sustainable Management of Forests (Indicator 7.47): An Assessment of Taxation Provisions and Financial Assistance Programs in the United States through the Montreal Process Framework

Abstract

Abstract United States forestland provides a number of ecological, social and economic benefits. Almost 40 percent of all forest ownership in the United States is private non-corporate, or operated by private family forestland owners. Investment in Sustainable Forest Management practices is important in the United States due to the growing need to protect the valuable non-market and market benefits forest land provides. Indicator 7.47 of the Montreal Process framework for Sustainable Forest Management addresses taxation and other economic strategies that affect the sustainable management of forests. This indicator covers Federal, State and Private taxation and financial assistance mechanisms in the United States. Overall, private forestland owners can be encouraged (or discouraged) to invest in Sustainable Forest Management practices through economic mechanisms such as income, estate, and property tax as well as financial assistance programs that offer cost-share assistance or grants and loans. The following paper will discuss taxation and financial assistance programs administered throughout the United States that are designed to encourage sustainable forestry investment.