One of the most effective forestry best management practices to protect water quality is the streamside buffer. Landowners who harvest timber and retain a streamside buffer may be eligible for a tax credit for a portion of the value of the timber retained as a buffer. Landowners who harvest timber and retain a streamside buffer may be eligible for a tax credit for a portion of the value of the timber retained as a buffer. 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. 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).
If the riparian forest buffers belonging to the same landowner cross the state boundary, only the portion contained within the state boundary will qualify for the tax credit.
The applicant’s harvesting operation must be complete to qualify for the tax credit.
The applicant is eligible for the tax credit for the tax year in which the harvesting operation was completed. Any unused portion of the tax credit may be carried over for up to five additional years of until completely used.