Government Incentive Programs for Tree-Planting or Forest Management on Private Lands
Compiled by:
- Katie Friday, United States Department of Agriculture, Forest Service (USDA FS)
- Sheri Mann, Hawaii Dept. Lands & Natural Resources, Division of Forestry and Wildlife (DOFAW)
- Steve Smith, Forestry Management Consultants - Hawaii
This chart is intended to facilitate comparison of programs and provide contact information. It is neither complete nor authoritative.
- Most cost-share programs reimburse landowners for a portion of their costs; payments are limited by (a) percentages or ratio of payment to match, (b) standard rates (caps) for eligible practices, and (c) annual or project total maximums.
- Most programs have guidelines for what can qualify as the "match" for the cost-share; for example, funding from one program usually cannot match funding from another.
- Federal and state cost-share payments must be reported in tax returns and may be taxable.
Index of programs
- Conservation Reserve Enhancement Program (CREP)
- Forest Stewardship Program (FSP)
- Forest Legacy
- Natural Areas Partnership (NAP)
- Wetlands Reserve Program
- Farm and Ranchland Protection Program
- Partners for Fish & Wildlife
- Safe Harbor Agreements (SHA)
- Watershed Partnership Program
- Environmental Quality Incentives Program (EQIP)
- Wildlife Habitat Incentives Program (WHIP)
- Army Compatible Use Buffers Program
- Urban & Community Forestry ~ Kaulunani
- HRS 186 Tree Farm Designation
- Federal Income Taxes
- Property Tax Treatment (Honolulu C&C)
- Agricultural Property Tax Reduction (Kauai County)
- Agricultural Property Tax Exemption (Kauai County)
- Agricultural Tax Rates (Hawaii County)
- Native Forest Dedication (Hawaii County)
- Property Tax Treatment (Maui County)
Download this chart in a printable format, MS word .doc for 8 1/2" x 14" paper
Conservation Reserve Enhancement Program (CREP)
The Conservation Reserve Enhancement Program (CREP) is a federal-state natural resources conservation program that addresses state and nationally significant agricultural related environmental concerns. Through CREP, program participants receive financial incentives from U.S. Department of Agriculture (USDA) and the State to voluntarily enroll in the Conservation Reserve Program in contracts of 15 years. Participants remove cropland and marginal pastureland from agricultural production and convert the land to native grasses, trees and other vegetation. The USDA Farm Service Agency (FSA) administers the CREP for USDA.
Forest Stewardship Program (FSP)
| Administering agency | DOFAW |
| Purpose | Complete range of forest management activities, including: conservation, restoration, timber production, and plan development. |
| Land Eligibility | Private, privately leased lands (10-year minimum lease); minimum 5 contiguous acres in FSP project; "non-industrial" owners |
| Incentive | Up to 50% cost-share, usually limited to $75,000/year |
| Time frame | 10 years of costsharing with a post 10 or more year maintenance period. Minimum 30-year contract if involves timber production. |
| Other Requirements | Pre-proposal and land management plan required; payback provisions may be required for timber harvest. Onus on grantee to obtain any necessary permits, including EA’s or CDUP’s. |
| Contact | Sheri Mann, 587-4172, sheri.s.mann@hawaii.gov, http://hawaii.gov/dlnr/dofaw/forestry/fsp |
Forest Legacy
| Administering agency | DOFAW (via USDA FS funds) |
| Purpose | Preclude conversion of forest land to non-forest uses |
| Land Eligibility | Private landowner that is a willing seller, currently 75% forested and threatened by development or fragmentation; must fall within designated “Forest Legacy Areas”. |
| Incentive | Federal funds available to purchase up to 75% of market value of a conservation easement or fee simple acquisition. Carries potential tax benefits. |
| Time frame | Permanent |
| Other Requirements | Subject to competitive prioritization at state, regional, and national levels. Requires FSP Plan; may require EA and CDUP. Subject to Yellow Book standard appraisal and review. |
| Contact | Sheri Mann, 587-4172, Sheri.s.mann@hawaii.gov, http://www.state.hi.us/dlnr/dofaw/Legacy |
Natural Areas Partnership (NAP)
| Administering agency | DOFAW |
| Purpose | Protection, restoration and enhancement of significant native resources or geological features |
| Land Eligibility | Private landowner who is a willing seller with intact native Hawaiian ecosystems, essential habitat for endangered species, and areas within the protective (P) subzone of the Conservation District; applicant may be cooperating entity managing such lands. |
| Incentive | Up to 67% cost-share. Possible reduced land taxes. |
| Time frame | Permanent dedication through transfer of fee title or conservation easement |
| Other Requirements | Development of long-range agreements and management plans; requires EA. Onus on grantee to obtain any necessary permits. |
| Contact | Randy Kennedy, 587-0054, randall.w.kennedy@hawaii.gov http://hawaii.gov/dlnr/dofaw/napp |
Wetlands Reserve Program (WRP)
| Administering agency | USDA Natural Resources Conservation Service (NRCS) |
| Purpose | Offers landowners an opportunity to establish longterm conservation and wildlife practices and protection by restoring, and enhancing wetlands on private property. |
| Land Eligibility | |
| Incentive | Provides technical and financial support to help landowners with their wetland restoration efforts. |
| Time frame | |
| Other Requirements | |
| Contact | Jan Surface, WRP Program Manager, (808) 541.2600 Ext. 153 Jan.Surface@hi.usda.gov, http://www.pia.nrcs.usda.gov/ |
Farm and Ranchland Protection Program
| Administering agency | USDA Natural Resources Conservation Service (NRCS) |
| Purpose | Purchase easements or other interests in land from landowners to keep productive farm and ranchland in agricultural uses. |
| Land Eligibility | Must be part of a pending offer from a State, tribe, or local farmland protection program; be privately owned; and have surrounding parcels of land that can support long-term agricultural production. Must have a conservation plan for highly erodible land. |
| Incentive | Up to 50% cost-share. Possible reduced land taxes. |
| Time frame | Permanent |
| Other Requirements | Subject to Yellow Book standard appraisal and review; must be large enough to sustain agricultural production; be accessible to markets for what the land produces; have adequate infrastructure and agricultural support services. |
| Contact | Paul Scales (808) 541-2600 Ext. 108; Mathew Wung (808) 885-6602 Ext. 106 (Waimea, Hawaii), http://www.pia.nrcs.usda.gov/ |
Partners for Fish & Wildlife
| Administering agency | US F&WS |
| Purpose | (1) Restore natural habitats and provide long-term benefits to threatened and endangered species; or (2) satisfy the needs of wildlife populations on National Wildlife Refuges |
| Land Eligibility | Private lands and Hawaiian Homelands |
| Incentive | Up to 50% cost-share; technical assistance also provided |
| Time frame | 10-year minimum commitment |
| Other Requirements | Projects cannot be used to fulfill mitigation requirements. Onus on grantee to obtain any necessary permits. |
| Contact | Benton Pang,792-9443, benton_Pang@fws.gov, http://www.fws.gov/pacificislands/partners.html |
Safe Harbor Agreements (SHA)
| Administering agency | US F&WS |
| Purpose | Proactive natural resource management to benefit endangered and threatened species. |
| Land Eligibility | Private and public lands |
| Incentive | Provides regulatory assurances that future property-use restrictions will not be imposed |
| Time frame | 5-15 year commitment |
| Other Requirements | Activities must meet “net conservation benefit” criteria for species |
| Contact | Benton Pang, (808) 792-9443, Benton_Pang@fws.gov |
Watershed Partnership Program
| Administering agency | DOFAW |
| Purpose | Cooperative projects that benefit onthe-ground activities protecting land for watershed conservation and implementing existing management plans negotiated under the Partnerships. |
| Land Eligibility | Landowner must inter into a MOU or agreement adopting the existing management plan scope. |
| Incentive | No mandatory cost-share requirement, but leveraging of funds is encouraged |
| Time frame | Year-to-year as funds are available |
| Other Requirements | EA may be necessary. Onus on grantee to obtain any necessary permits. Reporting necessary. |
| Contact | Lisa Ferentinos, (808) 587-0058, lisa.ferentinos@hawaii.gov http://www.state.hi.us/dlnr/dofaw/wpp/index.html |
Environmental Quality Incentives Program (EQIP)
| Administering agency | USDA Natural Resources Conservation Service (NRCS) |
| Purpose | Priority resource concerns pertinent to forestry include: (1) sedimentation from accelerated erosion; (2) noxious weeds; (3) at-risk species habitat; (4) invasive species |
| Land Eligibility | Private or State owned land 5-10+ year lease: cropland, rangeland, pasture, forest, other farm or ranch land |
| Incentive | Up to 75% cost-share |
| Time frame | 3-year cost-share agreements |
| Other Requirements | Applicants must be persons actively engaged in livestock or agricultural (or forest) production. Onus on grantee to obtain any necessary permits. |
| Contact | Dennis Kimberlin, (808) 541-2600 x 149, Dennis.Kimberlin@hi.usda.gov http://www.pia.nrcs.usda.gov/ |
Wildlife Habitat Incentives Program (WHIP)
| Administering agency | USDA Natural Resources Conservation Service (NRCS) |
| Purpose | Restoration of unique native habitats, especially for threatened and endangered plant and animal species; priority habitats for Hawaii include native forests |
| Land Eligibility | Private or leased land; state and county lands also eligible |
| Incentive | Up to 75% cost share on 5-10-year contract Up to 100% cost-share on 15-year contract |
| Time frame | 5-10-year contract 15-year contract |
| Other Requirements | WHIP applications not being accepted in FY08. Primary goal may not be commercial production. Onus on grantee to obtain any necessary permits. |
| Contact | Dennis Kimberlin, (808) 541-2600 x 149, Dennis.Kimberlin@hi.usda.gov http://www.pia.nrcs.usda.gov/ |
Army Compatible Use Buffers Program
| Administering agency | US Army |
| Purpose | Available for NGO or state/local agency to purchase a portion of land (titles or conservation easements). Helps the Army meet Endangered Species Recovery Act and prevention of future T&E species listings. |
| Land Eligibility | Private landowner that is a willing seller near Army lands. Another source of funds should be identified because this program does not provide funds for an entire purchase. |
| Incentive | Possible reduced land taxes. |
| Time frame | Permanent |
| Other Requirements | Army may use the land for low-impact training |
| Contact | John Housein, (410) 436-6465, John.housein@us.army.mil |
Urban & Community Forestry ~ Kaulunani
| Administering agency | DOFAW (USDA FS funds) |
| Purpose | Tree-planting in urban and community settings; educational programs; technical tree-care programs; Arbor Day activities |
| Land Eligibility | Public lands or private lands with public access. No personal landscaping allowed. |
| Incentive | Up to 50% cost-share, maximum usually $10,000/year but exceptions are made for special projects. |
| Time frame | Usually one year. |
| Other Requirements | Applicant must be non-profit organization, tree advocacy or civic group, educational institution, and/or local & state government agency |
| Contact | Teresa Trueman-Madriaga, 672-3383, ttm@hawaii.rr.com http://www.state.hi.us/dlnr/dofaw/kaulunani |
HRS 186 Tree Farm Designation
| Administering agency | DLNR, DOFAW |
| Purpose | Sustained production of forest products in quantity sufficient to establish a business |
| Land Eligibility | Private property or lease (minimum 20 years) |
| Incentive | “Right to Harvest” law applies. Land will be taxed based on Agriculture Zoning. |
| Time frame | |
| Other Requirements | Management Plan approved by DLNR Board |
| Contact | Michael Constantinides, 587-4186, http://www.capitol.hawaii.gov/hrscurrent/ Vol03_Ch0121-0200D/HRS0186/HRS_0186-0002.htm |
Federal Income Taxes
| Administering agency | Internal Revenue Service |
| Purpose | Planting for timber production ----------------------------------------- Timber sales |
| Land Eligibility | Private enterprises ----------------------------------------- Private enterprises |
| Incentive | For planting, deduction or amortization of planting costs - up to approximately $10,000 ----------------------------------------- For Timber Sales, long-term capital gains treatment |
| Time frame | For planting, amortize over 7 years ----------------------------------------- For timber sales, timber held over 1 year |
| Other Requirements | ----------------------------------------- For timber sales, must establish basis |
| Contact | http://www.fs.fed.us/r8/spf/coop/taxation/ http://www.timbertax.org/ |
Property Tax Treatment (Honolulu C&C)
| Administering agency | City & County of Honolulu |
| Purpose | Tree Farming |
| Land Eligibility | Private Property or minimum 20-year lease; minimum 10 acres |
| Incentive | Agricultural Property Tax Reduction (1-5% of fair market value, depending upon length of dedication) |
| Time frame | 1-, 5- or 10-year dedications |
| Other Requirements | HRS 186 Tree Farm Designation (see above) |
| Contact | Real Property Assessment Division, 527-5510, ext. 5539 http://www.co.honolulu.hi.us/rpa/chapter8.pdf Scroll down to page 24 in pdf- “Section 8-7.3 “Dedication of Lands for Agricultural Use” |
Agricultural Property Tax Reduction (Kaua'i County)
| Administering agency | Kaua'i County |
| Purpose | Commercial tree farms |
| Land Eligibility | Private property or lease; minimum 5 years’ acceptable previous agricultural land use; agricultural condominiums not eligible |
| Incentive | Tax assessment 50% of fair market value |
| Time frame | 20-year dedication; 10-year dedications might be allowed for short-rotation tree farms |
| Other Requirements | Tree farm management plan and other information |
| Contact | Real Property Assessment Division, 241-6222 http://www.kauai.gov/realproperty |
Agricultural Property Tax Exemption (Kaua'i County)
| Administering agency | Kaua'i County |
| Purpose | Tree farms |
| Land Eligibility | Private property or lease; minimum 10 acres; land in urban district not eligible |
| Incentive | $1000/parcel/year with a 10 year dedication and $500/parcel/year with a 20 year dedication |
| Time frame | Harvesting must take place 6-25 years after planting |
| Other Requirements | Tree farm management plan and other information |
| Contact | Real Property Assessment Division, 241-6222 http://www.kauai.gov/realproperty |
Agricultural Tax Rates (Hawai'i County)
| Administering agency | Hawai'i County |
| Purpose | Commercial tree farming (“Fast Rotation Forestry” and “Slow Rotation Forestry”) |
| Land Eligibility | Private property |
| Incentive | Agricultural Property Tax Reduction; rates based on crop and productivity |
| Time frame | Depends on dedication and acreage dedicated |
| Other Requirements | |
| Contact | Real Property Tax Division - Appraiser, 961-8354 http://www.hawaiipropertytax.com Click “Forms & Instructions,” then “Miscellaneous,” then “Agricultural Use” links |
Native Forest Dedication (Hawai'i County)
| Administering agency | Hawai'i County |
| Purpose | Preservation, restoration, and conservation of native forest (defined as at least 25% tree cover and 60% cover of native forest species) |
| Land Eligibility | Private property or lease of at least 20 yrs, minimum 3 acres |
| Incentive | Low tax assessments, same as for pasture |
| Time frame | 20 year agreement to use land as native forest |
| Other Requirements | Forest management plan; written affidavit from recognized forestry professional that restoration plan is likely to succeed within the designated time period |
| Contact | Real Property Tax Division – Appraiser (808) 961-8354 http://www.hawaiipropertytax.com Click “Forms & Instructions,” then “Dedications,” then “Native Forest Dedication” |
Property Tax Treatment (Maui County)
| Administering agency | Maui County |
| Purpose | Tree farms (not specifically addressed in Code, but could be considered “crop”) |
| Land Eligibility | Private property or lease; minimum 5 years’ acceptable previous agricultural land use |
| Incentive | Tax assessment 50% of fair market value |
| Time frame | 20-year dedication; 10-year dedications might be allowed for short-rotation tree farms |
| Other Requirements | Petition Director of Finance |
| Contact | Real Property Tax Division, 270-7297 http://ordlink.com/codes/maui/index.htm Click on Chapter 3, Revenue and Finance, then Chapter 3.48, REAL PROPERTY TAX. Scroll down to “Article 7. Valuations, then click “3.48.350 Dedicated Lands” links |
Forest land is a great investment for patient people who are willing to pass wealth on to future generations.
- Thom McEvoy, Positive Impact Forestry, ©2004 Island Press