HR 8538 raises reforestation tax deductions for landowners
In committeeH.R. 8538Latest action
Sponsor: Earl L. "Buddy" Carter · Representative · GA
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Official title: To amend the Internal Revenue Code of 1986 to allow for limited full expensing of certain reforestation expenditures.
119th Congress
Topics: Jobs & the economy
Introduced:
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Starting in 2027, landowners can write off up to $30,000 a year in tree-replanting costs, or up to $500,000 after a declared natural disaster.
50-second read · 4 questions answered below
What does this do?
This bill raises the amount of tree-replanting costs a landowner can immediately deduct on their federal taxes, from $10,000 to $30,000 per year. It also creates a larger deduction for replanting on land where unharvested timber was destroyed by a presidentially declared natural disaster in the past five years, up to $500,000 per property and $1,000,000 total. Both limits adjust for inflation over time, and if disaster-replanted land is sold within ten years, part of the tax benefit must be paid back.
Who does it affect?
These changes apply to individual landowners, family forest owners, partnerships, S corporations, and certain business groups. They apply to qualifying reforestation costs starting in tax year 2027.
Why does it matter?
Raising the deduction limits means landowners pay less in federal taxes in the years they replant trees. The payback rule means landowners who sell disaster-replanted land within ten years will owe some of those tax savings back to the federal government.
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Where does it stand?
- IntroducedApr 28, 2026
- House committeeYou are here · Apr 28, 2026
- House vote
- Senate
- The president's desk
Right now: a House committee is reviewing it. If the Senate changes it, it goes back to the House before reaching the president.
Latest action: — Referred to the House Committee on Ways and Means.