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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3399 Introduced in Senate (IS)]

110th CONGRESS
  2d Session
                                S. 3399

   To amend the Internal Revenue Code of 1986 to make permanent the 
reduction in the rate of tax on qualified timber gain of corporations, 
                        and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             July 31, 2008

 Mrs. Lincoln (for herself, Mr. Smith, Ms. Cantwell, Mr. Cornyn, Mrs. 
  Murray, Mrs. Dole, Ms. Landrieu, Mr. Chambliss, Mr. Wicker, and Mr. 
    Vitter) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
   To amend the Internal Revenue Code of 1986 to make permanent the 
reduction in the rate of tax on qualified timber gain of corporations, 
                        and for other purposes.

    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 ``Timber Revitalization and Economic 
Enhancement Act II of 2008''.

SEC. 2. PERMANENT REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN OF 
              CORPORATIONS.

    (a) In General.--Section 1201(b)(1) of the Internal Revenue Code of 
1986 is amended by striking ``and beginning on or before the date which 
is 1 year after such date''.
    (b) Conforming Amendment.--Paragraph (3) of section 1201(b) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(3) Computation for taxable years in which rate first 
        applies.--In the case of any taxable year which includes the 
        date set forth in paragraph (1), the qualified timber gain for 
        such year shall not exceed the qualified timber gain properly 
        taken into account for the portion of the year after such 
        date.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendment made by section 15311(a) of the 
Food, Conservation, and Energy Act of 2008.

SEC. 3. PERMANENT TIMBER REIT MODERNIZATION.

    (a) In General.--Section 856(c)(5)(H) of the Internal Revenue Code 
of 1986 is amended by striking clause (iii).
    (b) Conforming Amendment.--Section 856(c) of the Internal Revenue 
Code of 1986 is amended by striking paragraph (8).
    (c) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendment made by section 15312 of the 
Food, Conservation, and Energy Act of 2008.

SEC. 4. PERMANENT QUALIFICATION OF MINERAL ROYALTY INCOME FOR TIMBER 
              REITS.

    (a) In General.--Section 856(c)(2)(I) of the Internal Revenue Code 
of 1986 is amended by striking ``the first taxable year beginning after 
the date of the enactment of this subparagraph'' and inserting ``any 
taxable year''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the amendment made by section 15313(a) of the 
Food, Conservation, and Energy Act of 2008.

SEC. 5. PERMANENT MODIFCATION OF PROHIBITED TRANSACTION RULES FOR 
              TIMBER PROPERTY.

    (a) In General.--
            (1) Section 857(b)(6)(D)(v) of the Internal Revenue Code of 
        1986 is amended by striking ``, in the case of a sale on or 
        before the termination date,''.
            (2) Section 857(b)(6)(H) of such Code is amended by 
        striking ``In the case of a sale on or before the termination 
        date, the sale'' and inserting ``The sale''.
            (3) Section 857(b)(6) of such Code is amended by striking 
        subparagraph (I).
    (b) Effective Date.--The amendments made by this section shall take 
effect as if included in the amendments made by section 15315 of the 
Food, Conservation, and Energy Act of 2008.
                                 <all>
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