A client has $$20,000$ of reforestation expenses. Site preparation and planting should start after Thanksgiving and finish by New Year's Day. What can you advise your client concerning the available tax credit and amortization options that may be available?

a$.$ He isn't entitled to a tax credit nor $7-$year amortization of the expenses.

b$.$ He's entitled to a $10\%$ tax credit and the $7-$year amortization. He's limited$,$ however, to a maximum of $$10,000$ of the $$20,000$ total expense. There is no way to increase this tax benefit.

c$.$ If he splits the operation into two separate operations, he can utilize the tax credit and amortization over the entire $$20,000$ investment.

d$.$ He may want to consider performing half the operation this year and half next year, since the tax incentives are limited to $$10,000$ annually.