Oregon Administrative Rules
Chapter 629 - DEPARTMENT OF FORESTRY
Division 607 - SMALL FORESTLAND OWNER
Section 629-607-0400 - Forest Conservation Tax Credit - Process for Determining Eligibility

(1) To be eligible to apply for a forest conservation tax credit, a small forestland owner shall:

(2) After filing the notification of operation, but no later than three months after completing the timber harvest, the small forestland owner shall submit documentation of the stumpage values and costs of appraisal to the Small Forestland Owner Assistance Office.

(3) After receiving the notification of operation, documentation of stumpage values and costs associated with appraisal, and filing a deed restriction from the small forestland owner, the Small Forestland Owner Assistance Office shall evaluate and approve the stumpage value or request additional documentation as needed. Once stumpage values are approved, the office shall issue a certificate of eligibility to both the small forestland owner and the Department of Revenue.

(4) After receiving certification, a small forestland owner shall sign and record the deed restriction, in the county where the eligible forest conservation area is located, which prohibits the owner and the owner's successors in interest from conducting a harvest or otherwise removing trees within the forest conservation area.

(5) If the small forestland owner is taxed as a trust, partnership, or S corporation, the entity can distribute the forest conservation tax credit to owners or beneficiaries, as allowed by law.

(6) A nonresident small forestland owner shall follow the same process as a resident of this state for obtaining eligibility for the forest conservation tax credit.

(7) Type 4 harvests are not eligible to claim a forest conservation tax credit.

(8) In addition to all other requirements of administrative rule promulgated under the Forest Practices Act, small forestland owners shall comply with the requirements under chapter 34, Oregon Laws 2022.

(9) If a future legislature cancels the forest conservation tax credit, the State Forester will remove all restrictions on using the small forestland owner minimum option within a fifth field watershed for riparian areas where a credit has not been issued, though the department will continue to track the frequency of harvests under the small forestland owner minimum option. If a future legislature reinstates the forest conservation tax credit, the State Forester will renew the system.