Disaster Reforestation Act
This bill sets forth a special rule for the tax deduction for casualty losses of uncut timber (including pre-merchantable timber). It provides that in losses of any uncut timber from fire, storm, insects, invasive species, drought, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss shall not be less than the excess of the value of such timber determined immediately before such loss was sustained, over the salvage value of such timber.
To be eligible for the casualty loss deduction, the uncut timber subject to the loss must be reforested not later than the close of the five-year period beginning on the date of the loss.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 655 Introduced in House (IH)]
<DOC>
118th CONGRESS
1st Session
H. R. 655
To amend the Internal Revenue Code of 1986 to provide a special rule
for certain casualty losses of uncut timber.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 31, 2023
Mr. Carter of Georgia (for himself and Ms. Sewell) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to provide a special rule
for certain casualty losses of uncut timber.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Disaster Reforestation Act''.
SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER.
(a) In General.--Section 165(b) of the Internal Revenue Code of
1986 is amended--
(1) by striking ``For purposes of subsection (a)'' and
inserting the following:
``(1) In general.--For purposes of subsection (a)'', and
(2) by adding at the end the following new paragraph:
``(2) Special rule for casualty loss of uncut timber.--
``(A) In general.--In the case of the loss of any
uncut timber from fire, storm, insects, invasive
species, drought, or other casualty, or from theft, the
basis for determining the amount of the deduction for
such loss (as otherwise determined under paragraph (1))
shall not be less than the excess of--
``(i) the value of such uncut timber
determined immediately before such loss was
sustained, over
``(ii) the salvage value of such timber.
``(B) Appraisal methods.--With respect to the
appraisal of a timber casualty loss described in
subparagraph (A)--
``(i) the appraisal valuation date shall be
not later than 1 year after the casualty loss;
and
``(ii) the appraisal shall--
``(I) conform to the Uniform
Standards of Professional Appraisal
Practice (USPAP);
``(II) be limited to the value of
the lost timber; and
``(III) be completed by a Federal-
or State-certified appraiser.
``(C) Exclusion of timber not held for sale.--
Subparagraph (A) shall not apply to any timber unless
such timber is held for the purpose of being cut and
sold in connection with a trade or business that is not
a passive activity within the meaning of section 469.
``(D) Inclusion of pre-merchantable timber.--For
purposes of this paragraph, the term `uncut timber'
shall not fail to include pre-merchantable timber.
``(E) Reforestation requirement.--Subparagraph (A)
shall not apply unless the uncut timber subject to the
loss is reforested (with hardwoods, softwoods, or any
combination thereof) by planting, seeding, or
appropriate site preparation, not later than the close
of the 5-year period beginning on the date of such
loss.''.
(b) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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