Save America’s Family Forests Act of 2026

This bill, known as the "Save America's Family Forests Act of 2026," aims to significantly increase tax incentives for reforestation. It modifies existing law by tripling the base expensing amounts for reforestation expenditures, raising the primary limit from $10,000 to $30,000 and a secondary limit from $5,000 to $15,000. These updated amounts will also be adjusted annually for inflation starting in taxable years after 2026.

Additionally, the bill creates a new tax deduction specifically for reforestation expenditures related to qualified natural disasters. Taxpayers can deduct up to $500,000 per property (with an aggregate limit of $1,000,000 across all properties) for costs incurred to replant timber damaged or destroyed by a Presidentially declared disaster. This new deduction also includes provisions for inflation adjustment and special rules for controlled groups and pass-through entities.

To qualify for this disaster-related deduction, expenditures must be for uncut timber damaged within five years of the disaster, excluding reimbursed amounts or those deducted under other provisions. A recapture rule applies if the reforested property is disposed of within 10 years, treating the deduction as ordinary income, though exceptions exist for casualties or the taxpayer's death. Both sets of amendments will apply to amounts paid or incurred in taxable years beginning after December 31, 2026.