United States HR 655: Disaster Reforestation Act

Bill Text

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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 Representa-1
tives of the United States of America in Congress assembled, 2
SECTION 1. SHORT TITLE. 3
This Act may be cited as the ‘‘Disaster Reforestation 4
Act’’. 5
SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 6
(a) IN GENERAL.—Section 165(b) of the Internal 7
Revenue Code of 1986 is amended— 8
(1) by striking ‘‘For purposes of subsection 9
(a)’’ and inserting the following: 10
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•HR 655 IH
‘‘(1) IN GENERAL.—For purposes of subsection 1
(a)’’, and 2
(2) by adding at the end the following new 3
paragraph: 4
‘‘(2) SPECIAL RULE FOR CASUALTY LOSS OF 5
UNCUT TIMBER.— 6
‘‘(A) IN GENERAL.—In the case of the loss 7
of any uncut timber from fire, storm, insects, 8
invasive species, drought, or other casualty, or 9
from theft, the basis for determining the 10
amount of the deduction for such loss (as other-11
wise determined under paragraph (1)) shall not 12
be less than the excess of— 13
‘‘(i) the value of such uncut timber 14
determined immediately before such loss 15
was sustained, over 16
‘‘(ii) the salvage value of such timber. 17
‘‘(B) APPRAISAL METHODS.—With respect 18
to the appraisal of a timber casualty loss de-19
scribed in subparagraph (A)— 20
‘‘(i) the appraisal valuation date shall 21
be not later than 1 year after the casualty 22
loss; and 23
‘‘(ii) the appraisal shall— 24
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‘‘(I) conform to the Uniform 1
Standards of Professional Appraisal 2
Practice (USPAP); 3
‘‘(II) be limited to the value of 4
the lost timber; and 5
‘‘(III) be completed by a Federal- 6
or State-certified appraiser. 7
‘‘(C) EXCLUSION OF TIMBER NOT HELD 8
FOR SALE.—Subparagraph (A) shall not apply 9
to any timber unless such timber is held for the 10
purpose of being cut and sold in connection 11
with a trade or business that is not a passive 12
activity within the meaning of section 469. 13
‘‘(D) INCLUSION OF PRE-MERCHANTABLE 14
TIMBER.—For purposes of this paragraph, the 15
term ‘uncut timber’ shall not fail to include pre- 16
merchantable timber. 17
‘‘(E) REFORESTATION REQUIREMENT.— 18
Subparagraph (A) shall not apply unless the 19
uncut timber subject to the loss is reforested 20
(with hardwoods, softwoods, or any combination 21
thereof) by planting, seeding, or appropriate 22
site preparation, not later than the close of the 23
5-year period beginning on the date of such 24
loss.’’. 25
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(b) EFFECTIVE DATE.—The amendments made by 1
this section shall apply to taxable years beginning after 2
the date of the enactment of this Act. 3
Æ
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