Income tax; increase amount of credit for approved reforestation practices.

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To: Finance
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Senator(s) Michel, Berry, Rhodes,
Seymour, McCaughn, Suber, Taylor, McLendon,
Younger, Williams, Barrett, Thomas

SENATE BILL NO. 2861

AN ACT TO AMEND SECTION 27-7-22.15, MISSISSIPPI CODE OF 1972, 1
TO INCREASE THE AMOUNT OF THE INCOME TAX CREDIT AUTHORIZED FOR 2
APPROVED REFORESTATION PRACTICES; AND FOR RELATED PURPOSES. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 4
SECTION 1. Section 27-7-22.15, Mississippi Code of 1972, is 5
amended as follows: 6
27-7-22.15. (1) As used in this section, the following 7
words and phrases shall have the meanings ascribed to herein 8
unless the context clearly indicates otherwise: 9
(a) "Approved reforestation practices" means the 10
following practices for establishing a crop of trees suitable for 11
manufacturing into forest products: 12
(i) "Pine and hardwood tree planting practices" 13
including the cost of seedlings, planting by hand or machine, and 14
site preparation. 15
(ii) "Mixed-stand regeneration practices" to 16
establish a mixed-crop of pine and hardwood trees by planting or 17
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direct seeding, or both, including the cost of seedlings, 18
seed/acorns, planting, seeding and site preparation. 19
(iii) "Direct seeding practices" to establish a 20
crop of pine or oak trees by directly applying seed/acorns to the 21
site, including the cost of seed/acorns, seeding and site 22
preparation. 23
(iv) "Post-planting site preparation practices" to 24
reduce or control undesirable competition within the first growing 25
season of an established crop of trees. 26
Approved reforestation practices shall not include the 27
establishment of orchards, Christmas trees or ornamental trees. 28
(b) "Eligible tree species" means pine and hardwood 29
commercial tree species suitable for manufacturing into forest 30
products. 31
(c) "Cost-share assistance" means partial financial 32
payment for approved reforestation practices from the state 33
government as authorized under Sections 49-19-201 through 34
49-19-227, or the federal government. 35
(d) "Eligible owner" means a private individual, group 36
or association, but the term shall not mean private corporations 37
which manufacture products or provide public utility services of 38
any type or any subsidiary of such corporations. 39
(e) "Eligible lands" means nonindustrial private lands 40
owned by a private individual, group or association, but shall not 41
mean lands owned by private corporations which manufacture 42
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products or provide public utility services of any type or any 43
subsidiary of such corporations. 44
(f) "Reforestation prescription or plan" means a 45
written description of the approved reforestation practices that 46
the eligible owner plans to use and includes a legal description 47
and map of the area to be reforested, a list of the tree seedling 48
or seed species to be used in the reforestation and the site 49
preparation practices that will be utilized. 50
(2) Subject to the limitations provided in subsection (3) of 51
this section, upon submission to the * * * department of the 52
written verification provided for in subsection (5) of this 53
section and such other documentation as the * * * department may 54
require, any eligible owner who incurs costs for approved 55
reforestation practices for eligible tree species on eligible 56
lands shall be allowed a credit, in an amount equal to the lesser 57
of * * * the actual costs of the approved reforestation practices 58
or * * * the average cost of approved practices as established by 59
the Mississippi Forestry Commission under Section 49-19-219, 60
against the taxes imposed pursuant to this chapter for the tax 61
year in which the costs are incurred. 62
(3) The maximum amount of the credit provided for in 63
subsection (2) of this section that may be utilized in any one (1) 64
taxable year shall not exceed the lesser of * * * Twenty Thousand 65
Dollars ($20,000.00) or the amount of income tax imposed upon the 66
eligible owner for the taxable year reduced by the sum of all 67
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ST: Income tax; increase amount of credit for
approved reforestation practices.
other credits allowable to the eligible owner under this chapter, 68
except credit for tax payments made by or on behalf of the 69
eligible owner. Any unused portion of the credit may be carried 70
forward for succeeding tax years. The maximum dollar amount of 71
the credit provided for in subsection (2) of this section that an 72
eligible owner may utilize during his lifetime shall be * * * One 73
Hundred Twenty-five Thousand Dollars ($125,000.00) in the 74
aggregate. 75
(4) If an eligible owner receives any state or federal cost 76
share assistance funds to defray the cost of an approved 77
reforestation practice, the cost of that practice on the same acre 78
or acres within the same tax year is not eligible for the credit 79
provided in this section unless the eligible owner's adjusted 80
gross income is less than the federal earned income credit level. 81
(5) To be eligible for the tax credit, an eligible owner 82
must have a reforestation prescription or plan prepared for the 83
eligible lands by a graduate forester of a college, school or 84
university accredited by the Society of American Foresters or by a 85
registered forester under the Foresters Registration Law of 1977. 86
The forester must verify in writing that the reforestation 87
practices were completed and that the reforestation prescription 88
or plan was followed. 89
SECTION 2. This act shall take effect and be in force from 90
and after July 1, 2026. 91