Bona Fide Conservation Use Property; a limitation on leased property; remove

The bill now focuses on tax credits for timber producers instead of limiting lawsuits against cities and counties.

Provisions limiting the amount of money municipalities could be sued for and extending notice periods for claims were removed.

A total funding cap of $250 million was established for the tax credit program.

New deadlines were set for applications (starting July 1, 2026) and tax credit claims (by December 31, 2030).

Taxpayers must prove they replanted trees or restored forests to specific standards to qualify for credits.

A preapproval application process was created for taxpayers to request credits before filing returns.

All provisions regarding preferential tax assessments for conservation use property, including rules for leased land, acreage limits, and soil map requirements, were removed.

New provisions were added to limit municipal liability, specifically capping damages at $3 million per occurrence and $5 million in aggregate per municipality.

The deadline for filing a written claim against a municipality was extended from six months to twelve months.

A new section was added to clarify that these liability caps do not constitute a new waiver of sovereign immunity under the state constitution.

The header was updated to indicate the bill has passed the Senate, while the substantive content remains unchanged.