Short-rotation woody crops (SRWC) as an alternative investment for landowners may provide a competitive edge for domestic producers competing in the global marketplace. Institutional factors that affect the competitiveness of SRWC are local, regional, and national tax structures. Excessive tax burden may affect the competitiveness of domestic producers. This study focuses on two objectives. The first is to identify and document existing tax structures that directly and indirectly impact the establishment and management of SRWC. The second is to compare these structures across regions in the United States. The methods used to achieve these objectives utilize Internet and library searches as well as telephone interviews with state tax experts, industry representatives, and researchers. Preliminary results suggest that land use classification may affect tax requirements for SRWC in certain states despite federal tax treatment.