Businesses that qualify for the exemption
To be eligible for this exemption:
- Your business must engage in a qualifying logging activity. This includes:
- Cutting forest trees
- Thinning forest trees
- Skidding, decking, and loading forest trees
- The trees you harvest must be intended for sale by whoever owns them.
- You must report your business’ profit or loss on an income tax return.
Note: Logging doesn’t have to be your main business to qualify for the exemption.
Example
Road builders could qualify for this exemption if they move forest trees from a road right-of-way:
- The harvested trees must be sold by their owner.
- The equipment must be primarily used in the logging process. See Idaho Code section 63-3607A.
Businesses that don’t qualify for the exemption
Operations that aren’t eligible for the exemption include:
- Harvesting forest trees for your own use
- Harvesting forest trees for use by your business
- Harvesting firewood for your own use