Save America’s Family Forests Act of 2026

Increased Expensing Limits: The bill increases the base amounts for certain reforestation expenditures, raising the limit in one clause from $10,000 to $30,000 and in another from $5,000 to $15,000 (Section 2(a)).

Inflation Protection: A new provision allows for dollar amounts to be increased based on cost-of-living adjustments, ensuring that the limits keep up with inflation for taxable years beginning after 2026 (Section 2(b) and Section 3(a)(4)).

Disaster Recovery Support: Taxpayers can claim a deduction for reforestation expenditures related to uncut timber damaged by a qualified natural disaster, such as those determined by the President (Section 3(a)(1)).

High Deduction Caps for Disasters: For qualified timber property affected by a disaster, a taxpayer may be allowed a deduction of up to $500,000 per property, or an aggregate of $1,000,000 for all such properties (Section 3(a)(1)(A)).

Recapture of Deductions: If a taxpayer disposes of qualified timber property within 10 years of claiming a disaster-related deduction, they may have to pay back the deduction as ordinary income (Section 3(c)(1)).

Deduction Limits for Married Filers: Married taxpayers filing separately are subject to lower deduction limits for disaster-related reforestation, capped at $250,000 per property and $500,000 in the aggregate (Section 3(a)(1)).

Group Allocation Constraints: For controlled groups of corporations or businesses, the limitations on disaster-related deductions must be allocated among the members of the group (Section 3(a)(5)).