I 
112TH CONGRESS 
2D SESSION 
H. R. 6439 
To amend the Internal Revenue Code of 1986 to provide an exception to 
the imposition of the additional estate tax for severance of standing 
timber harvested consistent with a forest management plan. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 19, 2012 
Mrs. BLACK (for herself, Mr. MICHAUD, Mr. RIBBLE, Mr. BONNER, Mr. HER-
GER, Mr. THOMPSON of Pennsylvania, Mrs. BLACKBURN, Mr. DUNCAN 
of Tennessee, and Mr. KISSELL) 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 
an exception to the imposition of the additional estate 
tax for severance of standing timber harvested consistent 
with a forest management plan. 
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 ‘‘Keep the Forest in 
the Family Estate Tax Act of 2012’’. 
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SEC. 2. WOODLANDS SUBJECT TO MANAGEMENT PLAN. 
(a) 
IN
GENERAL.—Paragraph 
(2) 
of 
section 
2032A(c) of the Internal Revenue Code of 1986 is amend-
ed by adding at the end the following new subparagraph: 
‘‘(F) EXCEPTION
FOR
WOODLANDS
SUB-
JECT TO MANAGEMENT PLAN.—Subparagraph 
(E) shall not apply to any disposition or sever-
ance of standing timber on a qualified woodland 
if the harvest is— 
‘‘(i) consistent with a written forest 
management plan developed under the Co-
operative Forestry Assistance Act of 1978 
(16 U.S.C. 2103a), or an equivalent plan 
approved by the State Forester, 
‘‘(ii) conducted under the guidance of 
a qualified forestry professional (as deter-
mined by the Secretary in consultation 
with the United States Forest Service), or 
‘‘(iii) conducted on lands certified to a 
third-party audited forest certification sys-
tem or similar land management protocol, 
as determined by the Untied States Forest 
Service.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to the disposition or severance 
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of standing timber after the date of the enactment of this 
Act. 
SEC. 3. REPORT ON SIMPLIFYING SPECIAL USE VALUATION 
FOR WOODLANDS. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Commis-
sioner of the Internal Revenue Service, in cooperation with 
the Chief of the U.S. Forest Service, shall submit to the 
Senate Finance Committee and the House Ways and 
Means Committees a report on the use of section 2032A 
of the Internal Revenue Code of 1986 by woodland owners 
and recommendations to simplify this provision for use by 
such owners. 
(b) CONTENTS OF REPORT.—The report shall include 
the following elements: 
(1) An analysis of barriers woodland owners 
may face to using this section including difficulties 
with meeting material participation requirements 
and lack of consistent woodland valuation methods. 
(2) Recommendations for simplifying valuation 
of woodlands and material participation require-
ments for purposes of Section 2032A of the Internal 
Revenue Code of 1986. 
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SEC. 4. INCREASE LIMITATION ON AGGREGATE REDUC-
TION IN FAIR MARKET VALUE. 
(a) IN GENERAL.—Paragraphs (2) and (3) of section 
2032A(a) of the Internal Revenue Code of 1986 are both 
amended by striking ‘‘$750,000’’ each place it appears 
and inserting ‘‘$5,000,000’’. 
(b) ADDITIONAL MODIFICATION TO INFLATION AD-
JUSTMENT.—Paragraph (3) of such Code, as amended by 
subsection (a), is amended— 
(1) by striking ‘‘1998’’ and inserting ‘‘2012’’, 
and 
(2) by striking ‘‘1997’’ and inserting ‘‘2011’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to estates of decedents dying 
after December 31, 2012. 
Æ 
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