Disaster Reforestation Act

Bill: 118-hr-655
Sponsor: full_name: Rep. Carter, Earl L. "Buddy" [R-GA-1]
Introduced: 2023-01-31
Policy area: Taxation
Subjects: Disaster relief and insurance

Forests, forestry, trees

Income tax deductions

Inflation and prices
Latest action: action_date: 2023-01-31
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2023-01-31
action_desc: Introduced in House
text: <p><strong>Disaster Reforestation Act</strong></p> <p>This bill sets forth a special rule for the tax deduction for casualty losses of uncut timber (including pre-merchantable timber). It provides that in losses of any uncut timber from fire, storm, insects, invasive species, drought, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss shall not be less than the excess of the value of such timber determined immediately before such loss was sustained, over the salvage value of such timber. </p> <p>To be eligible for the casualty loss deduction, the uncut timber subject to the loss must be reforested not later than the close of the five-year period beginning on the date of the loss.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 655 IN THE HOUSE OF REPRESENTATIVES January 31, 2023 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.

1. Short title This Act may be cited as the Disaster Reforestation Act . 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: (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, insects, invasive species, drought, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss (as otherwise determined under paragraph (1)) shall not be less than the excess of— (i) the value of such uncut timber determined immediately before such loss was sustained, over (ii) the salvage value of such timber. (B) Appraisal methods With respect to the appraisal of a timber casualty loss described in subparagraph (A)— (i) the appraisal valuation date shall be not later than 1 year after the casualty loss; and (ii) the appraisal shall— (I) conform to the Uniform Standards of Professional Appraisal Practice (USPAP); (II) be limited to the value of the lost timber; and (III) be completed by a Federal- or State-certified appraiser. (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 Subparagraph (A) shall not apply unless the uncut timber subject to the loss is reforested (with hardwoods, softwoods, or any combination thereof) by planting, seeding, or appropriate site preparation, not later than the close of the 5-year period beginning on the date of such loss. . (b) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.