# Sustainable Forest Incentive Act (SFIA)

> Tax incentive from Minnesota Department of Revenue with Minnesota DNR (State) for MN, United States.

Official page: https://www.revenue.state.mn.us/sustainable-forest-incentive-act
Source: https://treerm.org/residents/programs/mn-revenue-sustainable-forest-incentive-act · Updated 2026-11-08 · Status: Open

**What you get:** Annual per-acre payments ($12.73 to $22.52 per acre for 2027, depending on covenant length) for keeping forest land under a management plan

SFIA pays Minnesota forest landowners each year for enrolling their woods under a registered Woodland Stewardship Plan and recording a covenant that limits the land to forest management for 8, 20 or 50 years. The Department of Revenue issues payments every October 1; payments are taxable income. Land in SFIA cannot also be in the 2c Managed Forest Land tax class or in RIM, CREP, CRP or Green Acres.

## Who qualifies

At least 20 contiguous acres, at least 50% forest land, a registered DNR forest management plan, current property taxes, and no residential or agricultural use. The land cannot be in 2c, RIM, CREP, CRP, Green Acres or Agricultural Preserves.

## How to apply

Get a Woodland Stewardship Plan registered with the DNR, choose an 8-, 20- or 50-year covenant and record it with the County Recorder, then mail the SFIA application with the recorded covenant and current tax statements to Minnesota Department of Revenue, Mail Station 3340, St. Paul, MN 55146-3340, postmarked by October 31 for payment the following year. File the certification form and Woodland Activity Annual Report by July 1 each year. Questions: 651-556-6088.

**When:** Apply by October 31; annual certification due July 1; payments October 1

**For:** Landowners, Farmers

> Note: 2027 rates for up to 1,920 acres are $12.73 (8-year), $17.63 (20-year) and $22.52 (50-year) per acre, but new 2027 applications and land under a conservation easement receive $4.90 per acre. Legislative changes starting in 2027 lower the payment formula and Revenue warns payments may fall by more than 10% a year; a one-time 2027 withdrawal window is offered. The year-to-year 2c Managed Forest Land alternative is applied for with the county assessor by May 1.