Tax reduction for buying forest land (DEFI forêt): acquisition conditions eased

Article 117 of the Rural Areas Development Act amends Article 199 decies H of the General Tax Code (tax reduction for buying woods, forests and land to be afforested). Purchases of 25 hectares or less qualify when they create or enlarge a management unit of at least 10 hectares or eliminate an enclave; in mountain areas, purchases over the previous three years can be combined. It also lists cases where the reduction is not clawed back despite a breach of the holding commitment: dismissal, disability, death, contribution of the land to a forestry group or forestry savings company after two years, or a gift where the recipients take over the commitments. These provisions apply to income tax due for 2004 and later years.