I 
119TH CONGRESS 
1ST SESSION 
H. R. 262 
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 9, 2025 
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. 
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 ‘‘Disaster Reforestation 
Act’’. 
SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 
(a) IN GENERAL.—Section 165(b) of the Internal 
Revenue Code of 1986 is amended— 
(1) by striking ‘‘For purposes of subsection 
(a)’’ and inserting the following: 
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‘‘(1) IN GENERAL.—For purposes of subsection 
(a)’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) SPECIAL RULE FOR CASUALTY LOSS OF 
UNCUT TIMBER.— 
‘‘(A) IN GENERAL.—In the case of the loss 
of any uncut timber from fire, storm, or other 
casualty, or from theft, the basis for deter-
mining the amount of the deduction for such 
loss (as otherwise determined under paragraph 
(1)) shall not be less than the excess of— 
‘‘(i) the appraised value of such uncut 
timber determined immediately before such 
loss was sustained, over 
‘‘(ii) the salvage value of such timber. 
‘‘(B) APPRAISAL METHODS.— 
‘‘(i) IN
GENERAL.—With respect to 
the appraisal of a timber casualty loss de-
scribed in subparagraph (A)— 
‘‘(I) the appraisal valuation date 
shall be not later than 1 year after 
the casualty loss, and 
‘‘(II) the appraisal shall— 
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‘‘(aa) conform to the Uni-
form Standards of Professional 
Appraisal Practice (USPAP), 
‘‘(bb) be limited to the value 
of the lost timber, and 
‘‘(cc) be completed by a 
Federal- or State-certified ap-
praiser. 
‘‘(ii) DELAY IN COMPLETION OF AP-
PRAISAL.— 
‘‘(I) IN GENERAL.—In the case 
of any taxpayer who is unable to ob-
tain an appraisal described in clause 
(i) before the due date of the return 
of tax (including any extension of 
time for filing such return) for the 
taxable year in which the timber cas-
ualty loss occurred, the taxpayer may 
elect to— 
‘‘(aa) with respect to the re-
turn of tax for such taxable year, 
include an estimate of the value 
of the uncut timber determined 
immediately before the loss was 
sustained, and 
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‘‘(bb) upon completion of 
the appraisal within the period 
described in clause (i)(I), file an 
amended return for such taxable 
year with respect to any adjust-
ment in taxable income as deter-
mined pursuant to subclause (II). 
‘‘(II) ADJUSTMENT OF TAXABLE 
INCOME.—With respect to any tax-
payer who elects to provide an esti-
mate described in subclause (I)(aa) 
for any taxable year in which a timber 
casualty loss occurred, the taxable in-
come of the taxpayer for such taxable 
year shall be increased or decreased, 
as applicable, by an amount equal to 
the difference between— 
‘‘(aa) the appraised value of 
such uncut timber determined 
immediately before such loss was 
sustained, as determined pursu-
ant to the appraisal described in 
clause (i), and 
‘‘(bb) the estimate provided 
by the taxpayer under subclause 
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(I)(aa) with respect to such 
uncut timber. 
‘‘(C) EXCLUSION OF TIMBER NOT HELD 
FOR SALE.—Subparagraph (A) shall not apply 
to any timber unless such timber is held for the 
purpose of being cut and sold in connection 
with a trade or business that is not a passive 
activity within the meaning of section 469. 
‘‘(D) INCLUSION OF PRE-MERCHANTABLE 
TIMBER.—For purposes of this paragraph, the 
term ‘uncut timber’ shall not fail to include pre- 
merchantable timber. 
‘‘(E) REFORESTATION REQUIREMENT.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply unless the uncut timber 
subject to the loss is reforested (with hard-
woods, softwoods, or any combination 
thereof) by planting, seeding, or appro-
priate site preparation, not later than the 
close of the 5-year period beginning on the 
date of such loss. 
‘‘(ii) 
RECAPTURE.—The 
Secretary 
shall, by regulations, provide for recap-
turing the benefit of any deduction allowed 
under this section with respect to any 
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uncut timber subject to loss to which sub-
paragraph (A) applied if the taxpayer fails 
to comply with clause (i) during the period 
provided under such clause. 
‘‘(F) OTHER CASUALTIES.—For purposes 
of subparagraph (A), the term ‘other casualty’ 
shall include loss of any uncut timber from— 
‘‘(i) wood-destroying insects, 
‘‘(ii) wood-destroying invasive species, 
or 
‘‘(iii) severe drought.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to losses sustained in taxable years 
beginning after the date of the enactment of this Act. 
Æ 
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