I 
108TH CONGRESS 
1ST SESSION 
H. R. 483
To amend the Internal Revenue Code of 1986 to provide involuntary conver-
sion tax relief for producers forced to sell livestock due to weather-
related conditions or Federal land management agency policy or action, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 29, 2003
Mr. MORAN of Kansas (for himself, Mrs. CUBIN, Mr. OSBORNE, Mr. 
REHBERG, and Mrs. MUSGRAVE) 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 
involuntary conversion tax relief for producers forced to 
sell livestock due to weather-related conditions or Federal 
land management agency policy or action, 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 ‘‘Livestock Reinvest-
ment Extension Act of 2003’’.
SEC. 2. INVOLUNTARY CONVERSION RELIEF FOR PRO-
DUCERS FORCED TO SELL LIVESTOCK DUE 
TO WEATHER-RELATED CONDITIONS OR FED-
ERAL LAND MANAGEMENT AGENCY POLICY 
OR ACTION. 
(a) INCOME INCLUSION RULES.—Subsection (e) of 
section 451 of the Internal Revenue Code of 1986 (relat-
ing to general rule for taxable year of inclusion) is amend-
ed to read as follows: 
‘‘(e) SPECIAL RULE FOR PROCEEDS FROM LIVE-
STOCK SOLD ON ACCOUNT OF WEATHER-RELATED CON-
DITIONS OR FEDERAL LAND MANAGEMENT AGENCY POL-
ICY OR ACTION.—
‘‘(1) IN GENERAL.—If—
‘‘(A) a taxpayer sells or exchanges live-
stock in excess of the number the taxpayer 
would sell if he followed his usual business 
practices, and 
‘‘(B) the taxpayer establishes that, under 
his usual business practices, the sale or ex-
change would not have occurred in the taxable 
year in which it occurred if it were not for—
‘‘(i) a drought, flood, or other weath-
er-related condition that resulted in the 
area being designated as eligible for assist-
ance by the Federal Government, or
‘‘(ii) forced sales resulting from Fed-
eral land management agency policy or ac-
tion, 
the taxpayer may elect to include income from such 
excess sales or exchanges for the second taxable year 
following the taxable year in which the circumstance 
applicable under subparagraph (B) ceased to exist. 
‘‘(2) LIMITATION.—Paragraph (1) shall apply 
only to a taxpayer whose principal trade or business 
is 
farming 
(within 
the 
meaning 
of 
section 
6420(c)(3)). 
‘‘(3) SPECIAL RULES FOR DROUGHT DESIGNA-
TIONS.—For purposes of this subsection, areas may 
be designated as eligible for drought condition as-
sistance—
‘‘(A) by Federal Government declaration, 
or 
‘‘(B) through Farm Service Agency flash 
reports as verified and approved by the Farm 
Service Agency director of the State in which 
such condition exists.’’. 
(b) RULES FOR REPLACEMENT OF INVOLUNTARILY 
CONVERTED LIVESTOCK.—Subsection (e) of section 1033 
of such Code (relating to involuntary conversions) is 
amended to read as follows:
‘‘(e) LIVESTOCK SOLD ON ACCOUNT OF WEATHER-
RELATED CONDITIONS OR FEDERAL LAND MANAGEMENT 
AGENCY POLICY OR ACTION.—
‘‘(1) IN GENERAL.—For purposes of this sub-
title, the sale or exchange of livestock (other than 
poultry) by the taxpayer in excess of the number the 
taxpayer would sell if he followed usual business 
practices, shall be treated as an involuntary conver-
sion to which this section applies if such livestock 
are sold or exchanged by the taxpayer solely on ac-
count of—
‘‘(A) drought, flood, or other weather-re-
lated conditions, or 
‘‘(B) forced sales caused by Federal land 
management agency policy or action. 
‘‘(2) EXTENSION OF REPLACEMENT PERIOD.—
‘‘(A) DROUGHTS, ETC.—In a case to which 
paragraph (1)(A) applies, the 2-year period in 
subsection (a)(2)(B) shall not expire before the 
later of—
‘‘(i) 4 years after the close of the first 
taxable year in which any part of the gain 
upon the conversion is realized, or 
‘‘(ii) 2 years after the close of the tax-
able year in which the drought, flood, or