Origin: Due to Massachusetts' conformity to Internal Revenue Code (Code) § 194, taxpayers can elect to deduct up to $10,000 of forestation or reforestation expenditures in a taxable year, with excess amounts amortized over seven years. The election applies to both the personal income tax and the net income measure of the corporate excise. For a more detailed description of this tax expenditure, see corporate excise item 2.313.
Origin: IRC § 194; M.G.L. c. 62, §§ 1(c), 1(d), and 2(d); M.G.L. c. 63, § 30.4
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2022
FY2023
FY2024
FY2025
FY2026
Personal Income Tax
Accelerated Deductions from Gross Income
1.311
Seven-Year Amortization for Reforestation
Due to Massachusetts' conformity to Internal Revenue Code (Code) § 194, taxpayers can elect to deduct up to $10,000 of forestation or reforestation expenditures in a taxable year, with excess amounts amortized over seven years. The election applies to both the personal income tax and the net income measure of the corporate excise. For a more detailed description of this tax expenditure, see corporate excise item <a href="/tax-expenditure-budget/corporate-excise-tax/accelerated-deductions-from-gross-income/2-313">2.313</a>.
<a href="https://www.law.cornell.edu/uscode/text/26/194" target="_blank">IRC § 194</a>; M.G.L. c. 62, <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section1" target="_blank">§§ 1(c), 1(d)</a>, and <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2" target="_blank">2(d)</a>; M.G.L. <a href="https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter63/Section30" target="_blank">c. 63, § 30.4</a>
0.2
0.2
0.2
0.2
0.2
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