[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 262 Introduced in House (IH)]
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119th CONGRESS
1st Session
H. R. 262
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 9, 2025
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, 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 appraised value of such uncut
timber determined immediately before such loss
was sustained, over
``(ii) the salvage value of such timber.
``(B) Appraisal methods.--
``(i) In general.--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--
``(aa) conform to the
Uniform Standards of
Professional Appraisal Practice
(USPAP),
``(bb) be limited to the
value of the lost timber, and
``(cc) be completed by a
Federal- or State-certified
appraiser.
``(ii) Delay in completion of appraisal.--
``(I) In general.--In the case of
any taxpayer who is unable to obtain an
appraisal described in clause (i)
before the due date of the return of
tax (including any extension of time
for filing such return) for the taxable
year in which the timber casualty loss
occurred, the taxpayer may elect to--
``(aa) with respect to the
return of tax for such taxable
year, include an estimate of
the value of the uncut timber
determined immediately before
the loss was sustained, and
``(bb) upon completion of
the appraisal within the period
described in clause (i)(I),
file an amended return for such
taxable year with respect to
any adjustment in taxable
income as determined pursuant
to subclause (II).
``(II) Adjustment of taxable
income.--With respect to any taxpayer
who elects to provide an estimate
described in subclause (I)(aa) for any
taxable year in which a timber casualty
loss occurred, the taxable income of
the taxpayer for such taxable year
shall be increased or decreased, as
applicable, by an amount equal to the
difference between--
``(aa) the appraised value
of such uncut timber determined
immediately before such loss
was sustained, as determined
pursuant to the appraisal
described in clause (i), and
``(bb) the estimate
provided by the taxpayer under
subclause (I)(aa) with respect
to such uncut timber.
``(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.--
``(i) In general.--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.
``(ii) Recapture.--The Secretary shall, by
regulations, provide for recapturing the
benefit of any deduction allowed under this
section with respect to any uncut timber
subject to loss to which subparagraph (A)
applied if the taxpayer fails to comply with
clause (i) during the period provided under
such clause.
``(F) Other casualties.--For purposes of
subparagraph (A), the term `other casualty' shall
include loss of any uncut timber from--
``(i) wood-destroying insects,
``(ii) wood-destroying invasive species, or
``(iii) severe drought.''.
(b) Effective Date.--The amendments made by this section shall
apply to losses sustained in taxable years beginning after the date of
the enactment of this Act.
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