Forestry Incentive Programs for Hawaii

Wetlands Reserve Program (WRP)

Administering agency	USDA Natural Resources Conservation Service (NRCS)
Purpose	Offers landowners an opportunity to establish longterm conservation and wildlife practices and protection by restoring, and enhancing wetlands on private property.
Land Eligibility
Incentive	Provides technical and financial support to help landowners with their wetland restoration efforts.
Time frame
Other Requirements
Contact	Jan Surface, WRP Program Manager, (808) 541.2600 Ext. 153 Jan.Surface@hi.usda.gov http://www.pia.nrcs.usda.gov/

Farm and Ranchland Protection Program

Administering agency	USDA Natural Resources Conservation Service (NRCS)
Purpose	Purchase easements or other interests in land from landowners to keep productive farm and ranchland in agricultural uses.
Land Eligibility	Must be part of a pending offer from a State, tribe, or local farmland protection program; be privately owned; and have surrounding parcels of land that can support long-term agricultural production. Must have a conservation plan for highly erodible land.
Incentive	Up to 50% cost-share. Possible reduced land taxes.
Time frame	Permanent
Other Requirements	Subject to Yellow Book standard appraisal and review; must be large enough to sustain agricultural production; be accessible to markets for what the land produces; have adequate infrastructure and agricultural support services.
Contact	Paul Scales (808) 541-2600 Ext. 108; Mathew Wung (808) 885-6602 Ext. 106 (Waimea, Hawaii) http://www.pia.nrcs.usda.gov/

Partners for Fish & Wildlife

Administering agency	US F&WS
Purpose	(1) Restore natural habitats and provide long-term benefits to threatened and endangered species; or (2) satisfy the needs of wildlife populations on National Wildlife Refuges
Land Eligibility	Private lands and Hawaiian Homelands
Incentive	Up to 50% cost-share; technical assistance also provided
Time frame	10-year minimum commitment
Other Requirements	Projects cannot be used to fulfill mitigation requirements. Onus on grantee to obtain any necessary permits.
Contact	Benton Pang,792-9443, benton_Pang@fws.gov http://www.fws.gov/pacificislands/partners.html

Safe Harbor Agreements (SHA)

Administering agency	US F&WS
Purpose	Proactive natural resource management to benefit endangered and threatened species.
Land Eligibility	Private and public lands
Incentive	Provides regulatory assurances that future property-use restrictions will not be imposed
Time frame	5-15 year commitment
Other Requirements	Activities must meet “net conservation benefit” criteria for species
Contact	Benton Pang, (808) 792-9443, Benton_Pang@fws.gov

Watershed Partnership Program

Administering agency	DOFAW
Purpose	Cooperative projects that benefit onthe-ground activities protecting land for watershed conservation and implementing existing management plans negotiated under the Partnerships.
Land Eligibility	Landowner must inter into a MOU or agreement adopting the existing management plan scope.
Incentive	No mandatory cost-share requirement, but leveraging of funds is encouraged
Time frame	Year-to-year as funds are available
Other Requirements	EA may be necessary. Onus on grantee to obtain any necessary permits. Reporting necessary.
Contact	Lisa Ferentinos, (808) 587-0058, lisa.ferentinos@hawaii.gov http://www.state.hi.us/dlnr/dofaw/wpp/index.html

Environmental Quality Incentives Program (EQIP)

Administering agency	USDA Natural Resources Conservation Service (NRCS)
Purpose	Priority resource concerns pertinent to forestry include: (1) sedimentation from accelerated erosion; (2) noxious weeds; (3) at-risk species habitat; (4) invasive species
Land Eligibility	Private or State owned land 5-10+ year lease: cropland, rangeland, pasture, forest, other farm or ranch land
Incentive	Up to 75% cost-share
Time frame	3-year cost-share agreements
Other Requirements	Applicants must be persons actively engaged in livestock or agricultural (or forest) production. Onus on grantee to obtain any necessary permits.
Contact	Dennis Kimberlin, (808) 541-2600 x 149, Dennis.Kimberlin@hi.usda.gov http://www.pia.nrcs.usda.gov/

Wildlife Habitat Incentives Program (WHIP)

Administering agency	USDA Natural Resources Conservation Service (NRCS)
Purpose	Restoration of unique native habitats, especially for threatened and endangered plant and animal species; priority habitats for Hawaii include native forests
Land Eligibility	Private or leased land; state and county lands also eligible
Incentive	Up to 75% cost share on 5-10-year contract Up to 100% cost-share on 15-year contract
Time frame	5-10-year contract 15-year contract
Other Requirements	WHIP applications not being accepted in FY08. Primary goal may not be commercial production. Onus on grantee to obtain any necessary permits.
Contact	Dennis Kimberlin, (808) 541-2600 x 149, Dennis.Kimberlin@hi.usda.gov http://www.pia.nrcs.usda.gov/

Army Compatible Use Buffers Program
(formerly Private Lands Initiative Program)

Administering agency	US Army
Purpose	Available for NGO or state/local agency to purchase a portion of land (titles or conservation easements). Helps the Army meet Endangered Species Recovery Act and prevention of future T&E species listings.
Land Eligibility	Private landowner that is a willing seller near Army lands. Another source of funds should be identified because this program does not provide funds for an entire purchase.
Incentive	Possible reduced land taxes.
Time frame	Permanent
Other Requirements	Army may use the land for low-impact training
Contact	John Housein, (410) 436-6465, John.housein@us.army.mil

Urban & Community Forestry ~ Kaulunani

Administering agency	DOFAW (USDA FS funds)
Purpose	Tree-planting in urban and community settings; educational programs; technical tree-care programs; Arbor Day activities
Land Eligibility	Public lands or private lands with public access. No personal landscaping allowed.
Incentive	Up to 50% cost-share, maximum usually $10,000/year but exceptions are made for special projects.
Time frame	Usually one year.
Other Requirements	Applicant must be non-profit organization, tree advocacy or civic group, educational institution, and/or local & state government agency
Contact	Teresa Trueman-Madriaga, 672-3383, ttm@hawaii.rr.com http://www.state.hi.us/dlnr/dofaw/kaulunani

HRS 186 Tree Farm Designation

Administering agency	DLNR, DOFAW
Purpose	Sustained production of forest products in quantity sufficient to establish a business
Land Eligibility	Private property or lease (minimum 20 years)
Incentive	“Right to Harvest” law applies. Land will be taxed based on Agriculture Zoning.
Time frame
Other Requirements	Management Plan approved by DLNR Board
Contact	Michael Constantinides, 587-4186 http://www.capitol.hawaii.gov/hrscurrent/ Vol03_Ch0121-0200D/HRS0186/HRS_0186-0002.htm

Federal Income Taxes

Administering agency	Internal Revenue Service
Purpose	Planting for timber production ----------------------------------------- Timber sales
Land Eligibility	Private enterprises ----------------------------------------- Private enterprises
Incentive	For planting, deduction or amortization of planting costs - up to approximately $10,000 ----------------------------------------- For Timber Sales, long-term capital gains treatment
Time frame	For planting, amortize over 7 years ----------------------------------------- For timber sales, timber held over 1 year
Other Requirements	----------------------------------------- For timber sales, must establish basis
Contact	http://www.fs.fed.us/r8/spf/coop/taxation/ http://www.timbertax.org/

Property Tax Treatment (Honolulu C&C)

Administering agency	City & County of Honolulu
Purpose	Tree Farming
Land Eligibility	Private Property or minimum 20-year lease; minimum 10 acres
Incentive	Agricultural Property Tax Reduction (1-5% of fair market value, depending upon length of dedication)
Time frame	1-, 5- or 10-year dedications
Other Requirements	HRS 186 Tree Farm Designation (see above)
Contact	Real Property Assessment Division, 527-5510, ext. 5539 http://www.co.honolulu.hi.us/rpa/chapter8.pdf Scroll down to page 24 in pdf- “Section 8-7.3 “Dedication of Lands for Agricultural Use”

Agricultural Property Tax Reduction (Kauai County)

Administering agency	Kauai County
Purpose	Commercial tree farms
Land Eligibility	Private property or lease; minimum 5 years’ acceptable previous agricultural land use; agricultural condominiums not eligible
Incentive	Tax assessment 50% of fair market value
Time frame	20-year dedication; 10-year dedications might be allowed for short-rotation tree farms
Other Requirements	Tree farm management plan and other information
Contact	Real Property Assessment Division, 241-6222 http://www.kauai.gov/realproperty

Agricultural Property Tax Exemption (Kauai County)

Administering agency	Kauai County
Purpose	Tree farms
Land Eligibility	Private property or lease; minimum 10 acres; land in urban district not eligible
Incentive	$1000/parcel/year with a 10 year dedication and $500/parcel/year with a 20 year dedication
Time frame	Harvesting must take place 6-25 years after planting
Other Requirements	Tree farm management plan and other information
Contact	Real Property Assessment Division, 241-6222 http://www.kauai.gov/realproperty

Agricultural Tax Rates (Hawaii County)

Administering agency	Hawaii County
Purpose	Commercial tree farming (“Fast Rotation Forestry” and “Slow Rotation Forestry”)
Land Eligibility	Private property
Incentive	Agricultural Property Tax Reduction; rates based on crop and productivity
Time frame	Depends on dedication and acreage dedicated
Other Requirements
Contact	Real Property Tax Division - Appraiser, 961-8354 http://www.hawaiipropertytax.com Click “Forms & Instructions,” then “Miscellaneous,” then “Agricultural Use” links

Native Forest Dedication (Hawaii County)

Administering agency	Hawaii County
Purpose	Preservation, restoration, and conservation of native forest (defined as at least 25% tree cover and 60% cover of native forest species)
Land Eligibility	Private property or lease of at least 20 yrs, minimum 3 acres
Incentive	Low tax assessments, same as for pasture
Time frame	20 year agreement to use land as native forest
Other Requirements	Forest management plan; written affidavit from recognized forestry professional that restoration plan is likely to succeed within the designated time period
Contact	Real Property Tax Division – Appraiser (808) 961-8354 http://www.hawaiipropertytax.com Click “Forms & Instructions,” then “Dedications,” then “Native Forest Dedication”

Property Tax Treatment (Maui County)

Administering agency	Maui County
Purpose	Tree farms (not specifically addressed in Code, but could be considered “crop”)
Land Eligibility	Private property or lease; minimum 5 years’ acceptable previous agricultural land use
Incentive	Tax assessment 50% of fair market value
Time frame	20-year dedication; 10-year dedications might be allowed for short-rotation tree farms
Other Requirements	Petition Director of Finance
Contact	Real Property Tax Division, 270-7297 http://ordlink.com/codes/maui/index.htm Click on Chapter 3, Revenue and Finance, then Chapter 3.48, REAL PROPERTY TAX. Scroll down to “Article 7. Valuations, then click “3.48.350 Dedicated Lands” links

Government Incentive Programs for Tree-Planting or Forest Management on Private Lands

Forest Stewardship Program (FSP)