FLA Statement on Passage of the One Big Beautiful Bill Act

The Forest Landowners Association appreciates the inclusion of several important provisions in the One Big Beautiful Bill Act that will provide much-needed certainty for multi-generational forest landowners and family-owned forestry businesses across the country.

Key tax-related measures in the legislation that support the long-term viability of private working forests include:

• Estate Tax Relief: Permanently increasing the estate tax exemption to $15 million per individual helps forest landowners pass land to the next generation without having to sell off working forestland to pay the tax bill.
• Preservation of Stepped-Up Basis: Retaining stepped-up basis is essential to avoiding unnecessary capital gains taxes on inherited forestland. Without it, heirs would face tax burdens that could threaten the viability of keeping land in active forestry.
• Permanent Section 199A Deduction: Making the 20% Qualified Business Income deduction permanent ensures pass-through forestry businesses can remain competitive and reinvest in sustainable forest management.
• Lower Individual Tax Rates and Expanded Brackets: Permanently extending reduced tax rates and the standard deduction gives landowners more flexibility to manage rising costs, maintain forest health, and invest in their communities.
• Expanded Section 179 Expensing and 100% Bonus Depreciation: Raising the Section 179 cap to $2.5 million and restoring full bonus depreciation allows landowners to invest in essential equipment and forest operations without deferring tax benefits.
• Preservation of 1031 Like-Kind Exchanges: Maintaining this important provision enables landowners to upgrade or consolidate forestland holdings for improved management without triggering immediate capital gains taxes.

These provisions provide the long-term tax certainty that private forest landowners need to keep working forests intact, support rural jobs, and ensure continued investment in family forestry businesses across the country, which provide benefits such as clean air, water, wildlife habitat, and renewable forest products.

FLA remains committed to working with Congress and the Trump Administration on additional priorities—including enhanced disaster recovery tools, expanded market access, and a forward-looking Farm Bill that recognizes the essential role of private forests in the nation’s environmental and economic future.