I 
111TH CONGRESS 
1ST SESSION H. R. 2543 
To amend the Internal Revenue Code of 1986 to make permanent the reduc-
tion in the rate of tax on qualified timber gain of corporations, and 
for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 21, 2009 
Mr. MCDERMOTT (for himself, Mr. BRADY of Texas, Mr. BLUMENAUER, Mr. 
REICHERT, Mr. DICKS, Mr. JONES, Mr. WU, Mr. HERGER, and Mr. 
SMITH of Washington) 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 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 Representa-
tives 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 of 2009’’. 
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SEC. 2. PERMANENT REDUCTION IN RATE OF TAX ON 
QUALIFIED TIMBER GAIN OF CORPORATIONS. 
(a) IN GENERAL.—Paragraph (1) of section 1201(b) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and beginning on or before the date which is 1 year 
after such date’’. 
(b) CONFORMING AMENDMENT.—Paragraph (3) of 
section 1201(b) of such Code is amended to read as fol-
lows: 
‘‘(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 prop-
erly 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 amend-
ment made by section 15311(a) of the Food, Conservation, 
and Energy Act of 2008. 
SEC. 3. PERMANENT TIMBER REIT MODERNIZATION. 
(a) IN GENERAL.—Subparagraph (H) of section 
856(c)(5) of the Internal Revenue Code of 1986 is amend-
ed by striking clause (iii). 
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(b) CONFORMING AMENDMENT.—Subsection (c) of 
section 856 of such Code is amended by striking para-
graph (8). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the amend-
ment made by section 15312 of the Food, Conservation, 
and Energy Act of 2008. 
SEC. 4. PERMANENT QUALIFICATION OF MINERAL ROY-
ALTY INCOME FOR TIMBER REITS. 
(a) IN
GENERAL.—Subparagraph (I) of section 
856(c)(2) of the Internal Revenue Code of 1986 is amend-
ed 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 amend-
ment made by section 15313(a) of the Food, Conservation, 
and Energy Act of 2008. 
SEC. 
5. 
PERMANENT 
MODIFCATION 
OF 
PROHIBITED 
TRANSACTION RULES FOR TIMBER PROP-
ERTY. 
(a) IN
GENERAL.—(1) Clause (v) of section 
857(b)(6)(D) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘, in the case of a sale on or before 
the termination date,’’. 
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(2) Subparagraph (H) of section 857(b)(6) 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) Paragraph (6) of section 857(b) of such Code is 
amended by striking subparagraph (H). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect as if included in the amend-
ments made by section 15315 of the Food, Conservation, 
and Energy Act of 2008. 
Æ 
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