Hon Dr Nick Smith Minister of Conservation 11 July 2013 Media Statement Tax reform encourages conservation planting Riparian plantings by farmers will now be able to be deducted as an operational expense rather than being classified as capital expenditure after the passage through Parliament today of amendments to the Income Tax Act 2007. “This tax change is important for conservation and water quality. It will encourage farmers to plant trees and shrubs in riparian strips along creeks and rivers. This will increase habitat and reduce sediment and nutrients from entering into our natural waterways,” Conservation Minister Dr Nick Smith says. “The key change to the Income Tax Act 2007 is that it now explicitly allows deductions for plantings to prevent or mitigate discharges into water courses or water bodies. It also extends the provision from just trees to shrubs and other plantings. “These tax reforms for tree and shrub plantings on private land are part of National’s broader Bluegreen agenda of encouraging wider involvement in conservation. It will help DOC advance the much needed partnerships to clean-up our waterways and provide habitats for native species.” Dr Smith says this law change delivers on National’s election policies. In 2008 we committed to review the tax deductibility of conservation expenditure and in 2011 we committed to amend the Income Tax Act. “Farmers are practical stewards of their land who know the benefits of riparian planting for reducing nutrient and sediment run-off. My challenge to the farming sector is to use this tax change to pick up the pace of riparian planting.”
Posted on: Thu, 11 Jul 2013 00:46:01 +0000
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