the right to payment under section 6427(l)(1) of 
such Code and as having assigned such right to the 
ultimate vendor if such ultimate vendor has met the 
requirements of subparagraph (A), (B), or (D) of 
section 6416(a)(1) of such Code. 
(d) SPECIAL RULE FOR KEROSENE USED IN AVIA-
TION ON A FARM FOR FARMING PURPOSES.—
(1) REFUNDS FOR PURCHASES AFTER DECEM-
BER 31, 2004, AND BEFORE OCTOBER 1, 2005.—
The Secretary of the Treasury shall pay to the ulti-
mate purchaser of any kerosene which is used in 
aviation on a farm for farming purposes and which 
was purchased after December 31, 2004, and before 
October 1, 2005, an amount equal to the aggregate 
amount of tax imposed on such fuel under section 
4041 or 4081 of the Internal Revenue Code of 1986, 
as the case may be, reduced by any payment to the 
ultimate vendor under section 6427(l)(5)(C) of such 
Code (as in effect on the day before the date of the 
enactment of the Safe, Accountable, Flexible, Effi-
cient Transportation Equity Act: a Legacy for 
Users). 
(2) USE
ON
A
FARM
FOR
FARMING
PUR-
POSES.—For purposes of paragraph (1), kerosene 
shall be treated as used on a farm for farming pur-
100
poses if such kerosene is used for farming purposes 
(within the meaning of section 6420(c)(3) of the In-
ternal Revenue Code of 1986) in carrying on a trade 
or business on a farm situated in the United States. 
For purposes of the preceding sentence, rules similar 
to the rules of section 6420(c)(4) of such Code shall 
apply. 
(3) TIME FOR FILING CLAIMS.—No claim shall 
be allowed under paragraph (1) unless the ultimate 
purchaser files such claim before the date that is 3 
months after the date of the enactment of this Act. 
(4) NO DOUBLE BENEFIT.—No amount shall be 
paid under paragraph (1) or section 6427(l) of the 
Internal Revenue Code of 1986 with respect to any 
kerosene described in paragraph (1) to the extent 
that such amount is in excess of the tax imposed on 
such kerosene under section 4041 or 4081 of such 
Code, as the case may be. 
(5) APPLICABLE LAWS.—For purposes of this 
subsection, rules similar to the rules of section 
6427(j) of the Internal Revenue Code of 1986 shall 
apply.
101
SEC. 252. DEDUCTION FOR QUALIFIED TIMBER GAIN. 
(a) IN GENERAL.—Part I of subchapter P of chapter 
1 is amended by adding at the end the following new sec-
tion: 
‘‘SEC. 1203. DEDUCTION FOR QUALIFIED TIMBER GAIN. 
‘‘(a) IN GENERAL.—In the case of a taxpayer which 
elects the application of this section for a taxable year, 
there shall be allowed a deduction against gross income 
equal to 60 percent of the lesser of—
‘‘(1) the taxpayer’s qualified timber gain for 
such year, or 
‘‘(2) the taxpayer’s net capital gain for such 
year. 
‘‘(b) QUALIFIED TIMBER GAIN.—For purposes of 
this section, the term ‘qualified timber gain’ means, with 
respect to any taxpayer for any taxable year, the excess 
(if any) of—
‘‘(1) the sum of the taxpayer’s gains described 
in subsections (a) and (b) of section 631 for such 
year, over 
‘‘(2) the sum of the taxpayer’s losses described 
in such subsections for such year. 
‘‘(c) SPECIAL RULES FOR PASS-THRU ENTITIES.—
In the case of any qualified timber gain of a pass-thru 
entity (as defined in section 1(h)(10))—