AUGUSTA – A new approach to preserving and properly managing Maine’s forest land by offering income tax incentives rather than heaping on more regulations has been signed into law by Gov. John Baldacci.

“It’s designed to be a carrot rather than a stick,” said the bill’s sponsor, Rep. Patrick S.A. Flood of Winthrop, adding, “It sends a very positive signal to landowners.”

More than a year in the works, the bill was overshadowed by larger issues such as state finances, racinos and property tax reform during the session that ended in mid-June.

Flood, a Republican, noted his bill won the support of the Democratic administration as well as small-woodlot owners’ organization. The Maine Pulp and Paper Association also voiced its support for the measure.

Maine already has what’s known as a “tree growth” law that offers property tax breaks for keeping land from being developed. But landowners also face significant financial penalties for developing land once they are in the program, and taxes are often levied retroactively.

Flood’s bill offers a graduated reduction in the state income tax to individuals and corporations if timberland larger than 10 acres and kept under the same ownership for at least 10 years is not developed and is managed properly.

Tax break eligibility begins in year 11 of ownership. Deductions are increased incrementally until they reach their peak at 25 years of ownership, when the tax deduction reaches 100 percent of the gain on the sale. The tax deduction is offered only at the time of sale, said Flood.

“To receive this benefit, the owner must also prove that he or she had practiced sustainable forestry,” said Flood, a registered guide and conservation consultant. The Department of Conservation decides what constitutes “sustainable” forestry. A licensed forester must certify that the land is managed in a way that sustains its productivity.

Flood sees the bill as an adjunct to other steps taken earlier this year to control property taxes, describing it as “a small step” in the direction of relief for landowners.