
STATE BY STATE ANNUAL ALLOCATION
OF CREDITS
The original formula contemplated for S.2187 provided that a State's portion of the total amount of tax credits would be
calculated by multiplying the aggregate annual tax credit ("Annual
Credit") by a fraction which is equal to the following: working from
the U.S. Department off Agriculture's 1997 land use census ("Agriculture
Census"), the denominator shall be the total acreage of "land
in farms" in the United States and the numerator shall be the total
acreage of "land in farms" in the particular State. Notwithstanding
this formula, no State would receive more than 4% of the Annual Credit.
Research and study over the last twenty months have led to the conclusion
that the Annual Credit should total $25 billion over five years, with
the Annual Credit being $4 billion in the first year and then increasing
by $500 million each year, with the Annual Credit for the fifth year then
being $6 billion. Likewise, it was determined that a more appropriate
allocation formula to use would be based on the Agricultural Census as
well as the 1997 U.S. Forest Service census ("Forest Census").
Using data from these two reports, a State's annual allocation would be
determined by multiplying the Annual Credit by a fraction which would
be equal to the following: the denominator shall be the total acreage
in the United States in "land in farms" less "total woodland"
under the Agricultural Census plus the total amount of "private forest
land" under the Forest Census and the numerator shall be the total
acreage for the particular State in "land in farms" less "total
woodland" under the Agricultural Census plus the "private forest
land" under the Forest Census. Notwithstanding this allocation, no
State would receive more than 4% of the Annual Credit. Allocations under
this revised recommended formula for Annual Credits ' of $5 billion, by
way of example, are attached.

