I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Disaster Reforestation 

5 Act’’. 

6 SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 

7 (a) IN GENERAL.—Section 165(b) of the Internal 

8 Revenue Code of 1986 is amended— 

9 (1) by striking ‘‘For purposes of subsection 

10 (a)’’ and inserting the following: 


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1 ‘‘(1) IN GENERAL.—For purposes of subsection 

2 (a)’’, and 

3 (2) by adding at the end the following new 

4 paragraph: 

5 ‘‘(2) SPECIAL RULE FOR CASUALTY LOSS OF

6 UNCUT TIMBER.— 

7 ‘‘(A) IN GENERAL.—In the case of the loss 

8 of any uncut timber from fire, storm, insects, 

9 invasive species, drought, or other casualty, or 

10 from theft, the basis for determining the 

11 amount of the deduction for such loss (as other12 wise determined under paragraph (1)) shall not 

13 be less than the excess of— 

14 ‘‘(i) the value of such uncut timber 

15 determined immediately before such loss 

16 was sustained, over 

17 ‘‘(ii) the salvage value of such timber. 

18 ‘‘(B) APPRAISAL METHODS.—With respect 

19 to the appraisal of a timber casualty loss de20 scribed in subparagraph (A)— 

21 ‘‘(i) the appraisal valuation date shall 

22 be not later than 1 year after the casualty 

23 loss; and 

24 ‘‘(ii) the appraisal shall— 


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1 ‘‘(I) conform to the Uniform 

2 Standards of Professional Appraisal 

3 Practice (USPAP); 

4 ‘‘(II) be limited to the value of 

5 the lost timber; and 

6 ‘‘(III) be completed by a Federal7 or State-certified appraiser. 

8 ‘‘(C) EXCLUSION OF TIMBER NOT HELD

9 FOR SALE.—Subparagraph (A) shall not apply 

10 to any timber unless such timber is held for the 

11 purpose of being cut and sold in connection 

12 with a trade or business that is not a passive 

13 activity within the meaning of section 469. 

14 ‘‘(D) INCLUSION OF PRE-MERCHANTABLE

15 TIMBER.—For purposes of this paragraph, the 

16 term ‘uncut timber’ shall not fail to include pre17 merchantable timber. 

18 ‘‘(E) REFORESTATION REQUIREMENT.— 

19 Subparagraph (A) shall not apply unless the 

20 uncut timber subject to the loss is reforested 

21 (with hardwoods, softwoods, or any combination 

22 thereof) by planting, seeding, or appropriate 

23 site preparation, not later than the close of the 

24 5-year period beginning on the date of such 

25 loss.’’. 


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1 (b) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 the date of the enactment of this Act. 

Æ 


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