Family Estate Tax Deferral Act of 2010

Source: American Forest Foundation

In early August U.S. Senators Diane Feinstein (D-CA) and Mike Crapo (R-ID) introduced legislation in the Senate that would help to fix the estate tax for family forest owners and farms. S. 3664, The Family Estate Tax Deferral Act of 2010, will help preserve forest land by helping families avoid the pressure of selling to pay taxes when land is passed down from one generation to the next.

If the estate tax is not reformed before 2011, any estate worth over $1 million will be subject to a 55% tax. This will affect many landowners, and may force some of them to sell or harvest their timber unsustainably in order to pay the tax.

S. 3664, the Feinstein-Crapo bill, is similar to the Thompson bill, HR 5475, in the House. The bill would provide family forest owners with an exemption from the estate tax, if they keep the land in their family and manage it as a forest. Landowners can harvest, if they harvest consistent with a forest stewardship plan.

More information about the bill and contacting your senators is available from the American Forest Foundation.