An act to amend the Federal Boat Safety Act of 1971 to promote recreational boating safety through the development, administration, and financing of a national recreational boating safety improvement program, and for other purposes.
PL 96-451 (H.R.4310), enacted 10/14/1980

PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1983 
Public Law 96-451 
96th Congress 
An Act 
To amend the Federal Boat Safety Act of 1971 to promote recreational boating 
safety through the development, administration, and financing of a nationsa 
recreational boating safety improvement program, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of 
America in Congress assembled, 
TITLE I—RECREATIONAL BOATING SAFETY AND FACILITIES 
IMPROVEMENT 
SEC. 101. This title may be cited as the "Recreational Boating 
Safety and Facilities Improvement Act of 1980". 
SEC. 102. The Federal Boat Safety Act of 1971 (Public Law 92-75,85 
Stat. 213), as amended, is amended as follows: 
(1) In section 2 by striking the first sentence and inserting in lieu 
thereof the following: "It is declared to be the policy of Congress and 
the purpose of this Act to improve recreational boating safety and 
facilities and to foster greater development, use, and enjoyment of all 
the waters of the United States by encouraging and Eissisting partici-
pation by the several States, the boating industry, and the boating 
public in the development, administration, gmd financing of a 
national recreationgd boating safety and facilities improvement pro-
gram; by authorizing the establishment of nationsil construction and 
performance standards for boats and associated equipment; and by 
creating more flexible authority governing the use of boats and 
equipment.". 
(2) In section 3— 
(a) by striking clauses (10) and (11) and inserting in lieu thereof 
the following: 
"(10) 'United States' and 'State' include the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, Guam, American Samoa, the United States Virgin Islands, the 
Commonwealth of the Northern Marianas, the Trust Territory of the 
Pacific Islands, and any other territory or possession over which the 
United States has jurisdiction. 
"(11) 'Eligible State' means a State that has a State recreational 
boating safety and facilities improvement program that has been 
accepted by the Secretary,"; and 
(b) by adding the following new clauses: 
"(12) 'State recreational boating safety and facilities improvement 
program' means a State recreational boating safety program, or a 
State recreational boating facilities improvement program, or both. 
"(13) 'State recreational boating safety program' means education, 
assistance, and enforcement activities conducted for the purpose of 
boating accident or ceisualty prevention, reduction, and reporting. 
"(14) 'State recreational boating facilities improvement program' 
means programs to develop or improve public facilities that create, or 
add to, public access to the waters of the United States to improve 
their suitability for recreational boating purposes, including such 
Oct. 14, 1980 
[H.R. 4310] 
National boating 
safety program. 
Recreational 
Boating 
Safety and 
Facilities 
Improvement 
Act of 
1980. 
46 use 1451 
note. 
46 use 1451. 
Definitions. 
46 use 1452. 
79-194 
O—81—pt. 2 
45 : QL3 
94 STAT. 1984 
PUBLIC LAW 96-451—OCT. 14, 1980 
ancillary facilities as are necessary to insure the safe use of those 
facilities. Such term shall include acquisition of title, or any interest 
in, riparian or submerged land, and the capital improvement of 
riparian or submerged land for the purpose of increasing public 
access to the waters of the United States. 
"(15) 'Fund' means the National Recreational Boating Safety and 
Facilities Improvement Fund established by title II of this Act.". 
(3) Section 25 is amended to read as follows: 
46 u s e 1474. 
Funds, 
allocation 
and distribution. 
Guidelines and 
standards. 
Consultation. 
Environmental 
standards. 
Funds, 
eligibility. 
Matching 
funds. 
NATIONAL RECREATIONAL BOATING SAFETY AND FACILITIES 
IMPROVEMENT PROGRAM 
"SEC. 25. (a) In order to encourage greater State participation and 
uniformity in boating safety and facility improvement efforts, and 
particularly to permit the States to assume the greater share of 
boating safety education, assistance, and enforcement activities, the 
Secretary shall implement and administer a national recreational 
boating safety and facilities improvement program. Under this pro-
gram, the Secretary may allocate and distribute funds to eligible 
States to assist them in the development, administration, and financ-
ing of State recreational boating safety and facilities improvement 
programs. The Secretary shall establish guidelines and standards for 
this program. In doing so, he shall— 
"(1) consider, among other things, factors which affect recre-
ational boating safety by contributing to overcrowding and 
congestion of waterways, such as the increasing number of 
recreational boats using those waterways and their geographic 
distribution, and the availability and geographic distribution of 
recreational boating facilities within and among applying States, 
as well as State recreational boating casualty and fatality 
statistics; 
"(2) consult with the Secretary of the Interior so as to minimize 
duplication with the purposes and expenditures of the Land and 
Water Conservation Fund Act of 1965 (16 U.S.C. 4601-4) and with 
the guidelines developed thereunder; and 
"(3) maintain environmental standards consistent with the 
Coastal Zone Management Act of 1972 (16 U.S.C. 1451-1464) and 
other Federal laws and policies intended to safeguard the ecologi-
cal and esthetic quality of our Nation's waters and wetlands. 
"(b) A State whose recreational boating safety and facilities 
improvement program has been accepted by the Secretary shall be 
eligible for allocation and distribution of funds under this Act to 
assist that State in the development, administration, and financing of 
its State program. Matching funds shall be allocated and distributed 
among eligible States by the Secretary in accordance with section 26 
of this Act". 
(4) Section 26 is amended to read as follows: 
PROGRAM ACCEPTANCE 
46 use 1475. 
"SEC. 26. (a) The Secretary, in accordance with this section and 
such regulations £is he may promulgate, may allocate and distribute 
funds from the fund to any State that has an accepted State 
recreational boating safety and facilities improvement program, if 
the State demonstrates to his satisfaction that— 
"(1) the program submitted by that State is consistent with the 
purposes of this Act; 
PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1985 
Designated State 
authority; 
reports, 
submittal. 
"(2) funds distributed will be used to develop and administer a 
State recreational boating safety and facilities improvement 
program containing the minimum requirements set forth in 
subsection (b), (c), or (d) of this section; 
"(3) sufficient State matching funds are available from either Matching funds. 
general revenue, boat registration and license fees. State marine 
fuels taxes, or from a fund constituted from the proceeds of such 
a tax and established for the purpose of financing a State 
recreational boating safety and facilities improvement program. 
No Federal funds from other sources may be used to provide a 
State's share of the costs of the program described under this 
section, nor may any State matching funds committed to a 
program under this Act be used to constitute the State's share of 
matching funds required by any other Federal program; and 
"(4) the program submitted by that State designates a State 
lead authority or agency, which would implement or coordinate 
the implementation of the State recreational boating safety and 
facilities improvement program supported by Federal financial 
assistance in that State, including the requirement that the 
designated State authority or agency submit required reports 
that are necessary and reasonable for a proper and efficient 
administration of the program and that are in the form pre-
scribed by the Secretary. 
"(b) The Secretary shall accept a State recreational boating safety 
program, and such program shall be eligible to receive funds appro-
priated pursuant to section 30(a) of this Act, if such program Post, p. 1987. 
includes— 
"(1) a vessel numbering system, either approved or adminis-
tered by the Secretary under this Act; 
"(2) a cooperative boating safety assistance program with the 
Coast Guard in that State; 
"(3) sufficient patrol and other activity to insure adequate 
enforcement of applicable State boating safety laws and regula-
tions; and 
"(4) an adequate State boating safety education program. 
"(c) The Secretary shall accept a State recreational boating facili-
ties improvement program, and such program shall be eligible to 
receive funds appropriated pursuant to section 30(b) of this Act, if 
such program includes— 
"(1) a complete description of recreational boating facility 
improvement projects to be undertaken by the State; and 
"(2) consultation with State officials responsible for the 
statewide comprehensive outdoor recreation plan required by 
the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 
4601-4) and for any program developed under the Coastal Zone 
Management Act of 1972 (16 U.S.C. 1451-64). 
"(d) Any State may, at its election, submit a combined program to 
the Secretary for the improvement of recreational boat safety and the 
improvement of recreational boating facilities in that State. The 
Secretary shall approve such program if it contains the minimum 
requirements set forth in subsections (b) and (c) of this section. Those 
portions of such combined program that are designed to improve 
recreational boating safety shall be eligible to receive funds appropri-
ated for State recreational boating safety programs pursuant to 
section 30(a) of this Act. Those portions of such combined program 
that are designed to improve recreational boating facilities shall be 
eligible to receive funds appropriated for State recreational boating 
16 use 460M 
note. 
Combined 
program. 
94 STAT. 1986 
PUBLIC LAW 96-451—OCT. 14, 1980 
facilities improvement programs pursuant to section 30(b) of this 
Post, p. 1987. 
Act.". 
(5) Section 27 is amended to read as follows: 
"ALLOCATION OF FEDERAL FUNDS 
46 use 1476. 
"SEC. 27. (a) The Secretary shall allocate the Federal funds availa-
ble for allocation and distribution under this Act for State recrea-
tional boating safety programs as follows: 
"(1) one-third shall be allocated equally among eligible States; 
"(2) one-third shall be allocated among eligible States that 
maintain a State vessel numbering system approved under this 
Act so that the amount allocated each fiscal year to each such 
State will be in the same ratio as the number of vessels numbered 
in that State bears to the number of vessels numbered in all 
eligible States; and 
(3) one-third shall be allocated so that the amount allocated 
each fiscal year to each eligible State will be in the same ratio as 
the amount of State funds expended or obligated by such State 
for the State recreational boating safety program during the 
previous fiscal year bears to the total State funds expended or 
obligated during that fiscal year by all eligible States for State 
recreational boating safety programs. 
"0)) The Secretary shall allocate the Federal funds available for 
allocation and distribution under this Act for State recreational 
boating facilities improvement programs as follows: 
'(1) one-third shall be allocated equally each year among 
eligible States; 
"(2) one-third shall be allocated so that the amount each year 
to each eligible State will be in the same ratio as the number of 
vessels numbered in that State bears to the number of vessels 
numbered in all eligible States; and 
"(3) one-third shall be allocated so that the amount each year 
to each eligible State shall be in the same ratio as the State funds 
expended or obligated by the State for a recreational boating 
facilities improvement program approved under this Act during 
the previous fiscal year by a State bears to the total State funds 
expended or obligated for that fiscal year by all eligible States for 
recreational boating facilities improvement programs. 
Limitations. 
"(c) The amount received by any State under this section in any 
fiscal year may not exceed one-half of the total cost incurred by that 
State in the development, administration, and financing of that 
State's recreational boating safety and facilities improvement pro-
gram in that fiscal year. 
"(d) No allocation or distribution of funds under this section may be 
made to any State for the maintenance of boating facilities under an 
approved State recreational boating safety and facilities improve-
ment program, 
"(e) The Secretary may allocate not more than 5 percent of the 
funds available for allocation and distribution in any fiscal year for 
national boating safety activities of one or more national nonprofit 
public service organizations. 
"(f) The Secretary is authorized to expend from the funds available 
for allocation and distribution in any fiscal year such sums as are 
necessary for the administration of this Act, but in no event may the 
funds expended for such administration in any fiscal year exceed the 
greater of $250,000 or 2 percent of the funds available for allocation 
and distribution in that fiscal year.". 
PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1987 
(6) In section 28 by striking subsections (a) and (d) and redesignat- 46 use 1477. 
ing subsections (b) and (c) as (a) and (b), respectively. 
(7) In section 29 by (A) striking the words "boating safety program" 46 USC 1478. 
and substituting "State recreational boating safety and facilities 
improvement program" and (B) by inserting the word "land," imme-
diately after the words "costs o f the first time they appear therein. 
(8) Section 30 is amended to read as follows: 
AUTHORIZATION OF APPROPRIATIONS 
"SEC. 30. (a) For the purpose of providing financial assistance for 46 USC 1479. 
State recreational boating safety programs, there is authorized to be 
appropriated from the National Recreational Boating Safety and 
Facilities Improvement Fund $10,000,000 for each of the fiscal years 
1981, 1982, and 1983, such appropriations to remain available until 
expended. 
"(b) For the purpose of providing financial assistance for State 
recreational boating facilities improvement programs, there is 
authorized to be appropriated from the National Recreational Boat-
ing Safety and Facilities Improvement Fund $10,000,000 for each of 
the fiscal years 1981, 1982, and 1983, such appropriations to remain 
available until expended.". 
(9) Section 31 is amended— 
46 USC 1480. 
(a) in subsection (a) to read as follows: 
"(a) Amounts allocated and distributed under section 27 of this Act Ante, p. 1986. 
shall be computed and paid to the States as follows: The Secretary 
shall determine, during the last quarter of a fiscal year, on the basis 
of computations made pursuant to section 29 of this Act and submit-
ted by the States, the percentage of the funds available for the next 
fiscal year to which each eligible State shall be entitled. Notice of the 
percentage and of the dollar amount, if it can be determined, for each 
State shall be furnished to the States at the earliest practicable time. 
If the Secretary finds that an amount made available to a State for a 
prior year is greater or less than the amount which should have been 
made available to that State for the prior year, because of later or 
more accurate State expenditure information, the amount for the 
current fiscal year may be increased or decreased by the appropriate 
amount."; and 
(b) in subsection (c) by striking the words "boating safety 
program" each time they appear and substituting "State recre-
ational boating safety and facilities improvement program". 
(10) Section 32 is amended— 
46 USC 1481. 
(a) by striking in subsection (a) the words "boating and boating 
safety" and inserting in lieu thereof the words "boating safety 
and facilities improvement."; and 
(b) by adding in the first sentence of subsection (b) following the 
word' safety" the words "and facilities improvement". 
TITLE II—ESTABLISHMENT OF FUND 
SEC. 201. SHORT TITLE. 
This title may be cited as the "Recreational Boating Fund Act of 
1980". 
Recreational 
Boating 
Fund Act of 
1980. 
46 USC 1451 
note. 
SEC. 202. 
ESTABLISHMENT OF NATIONAL RECREATIONAL 
SAFETY 
AND 
FACILITIES 
IMPROVEMENT 
FUND. 
There is established in the Treasury of the United States a separate 
fund to be known as the "National Recreational Boating Safety and 
BOATING 
46 USC 1479a. 
94 STAT. 1988 
PUBLIC LAW 96-451—OCT. 14, 1980 
Facilities Improvement Fund", consisting of such amounts as may be 
paid into it as provided in section 209(f)(5) of the Highway Revenue 
Infra. 
Act of 1956. Amounts in the Fund shall be available, as provided in 
appropriation Acts, for making expenditures after September 30, 
1980, and before April 1,1984, as provided in section 26 of the Federal 
Ante, p. 1984. 
Boat Safety Act of 1971 (46 U.S.C. 1476). 
4
6 
use 
1
4
7
5
. 
SEC. 
2
0
3
. 
TRANSFER 
OF 
MOTORBOAT 
FUEL 
TAXES 
TO 
FUND. 
(a) GENERAL RULE.—Paragraph (5) of section 209(0 of the Highway 
Revenue Act of 1956 (23 U.S.C. 120 note) is amended to read as 
follows: 
"(5) TRANSFERS FROM THE TRUST FUND FOR MOTORBOAT FUEL 
TAXES.— 
"(A) 
TRANSFER TO NATIONAL RECREATIONAL BOATING 
SAFETY AND FACILITIES IMPROVEMENT FUND.— 
"(i) IN GENERAL.—The Secretary of the Treasury shall 
pay from time to time from the trust fund into the 
National Recreational Boating Safety and Facilities 
Improvement Fund established by section 202 of the 
Ante, p. 1987. 
Recreational Boating Fund Act amounts (as determined 
by him) equivalent to the motorboat fuel taxes received 
on or after October 1, 1980, and before October 1, 1983. 
"(ii) LIMITATIONS.— 
"(I) 
LIMIT ON TRANSFERS DURING ANY FISCAL 
YEAR.—The aggregate amount transferred under 
this subparagraph during any fiscal year shall not 
exceed $20,000,000. 
"(II) 
LIMIT ON AMOUNT IN FUND.—No amount 
shall be transferred under this subparagraph if the 
Secretary determines that such transfer would 
result in increasing the amount in the National 
Recreational Boating Safety and Facilities Improve-
ment Fund to a sum in excess of $20,000,000. 
"(B) 
EXCESS FUNDS TRANSFERRED TO LAND AND WATER 
CONSERVATION FUND.—Any amount received in the trust 
fund which is attributable to motorboat fuel taxes and which 
is not transferred from the trust fund under subparagraph 
(A) shall be transferred by the Secretary from the trust fund 
into the land and water conservation fund provided for in 
16 use 460Z-4. 
title I of the Land and Water Conservation Fund Act of 1965. 
"(C) MOTORBOAT FUEL TAXES.—For purposes of this para-
graph, the term 'motorboat fuel taxes' means the taxes 
26 use 4041. 
under section 4041(b) of the Internal Revenue Code of 1954 
with respect to special motor fuels used as fuel in motorboats 
26 use 4081. 
and under section 4081 of such Code with respect to gasoline 
used as fuel in motorboats." 
23 use 120 note. 
(b) EFFECTIVE DATE.—The amendment made by subsection (a) shall 
apply to taxes received on or after October 1,1980. 
SEC. 
2
0
4
. 
STUDY 
BY 
SECRETARY 
OF 
THE 
TREASURY. 
26 use 4041 
The Secretary of the Treasury (after consultation with the Secre-
"°^® 
tary of the department in which the Coast Guard is operating) shall 
conduct a study to determine the portion of the taxes imposed by 
sections 4041(b) and 4081 of the Internal Revenue Code of 1954 which 
Report to 
is attributable to fuel used in recreational motorboats. Not later than 
Congress. 
2 years after the date of the enactment of this Act, the Secretary of 
the Treasury shall report to the Congress on his findings under such 
study. 
PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1989 
TITLE III-REFORESTATION 
SEC. 301. AMORTIZATION OF REFORESTATION EXPENDITURES. 
(a) IN GENERAL.—Part VI of subchapter B of chapter 1 of the 
Internal Revenue Code of 1954 (relating to itemized deductions for 
individuals and corporations) is amended by adding at the end 
thereof the following new section: 
"SEC. 194. AMORTIZATION OF REFORESTATION EXPENDITURES. 
26 USC 194. 
"(a) ALLOWANCE OF DEDUCTION.—In the case of any qualified 
timber property with respect to which the taxpayer has made (in 
accordance with regulations prescribed by the Secretary) an election 
under this subsection, the taxpayer shall be entitled to a deduction 
with respect to the amortization of the amortizable basis of qualified 
timber property based on a period of 84 months. Such amortization 
deduction shall be an amount, with respect to each month of such 
period within the taxable year, equal to the amortizable basis at the 
end of such month divided by the number of months (including the 
month for which the deduction is computed) remaining in the period. 
Such amortizable basis at the end of the month shall be computed 
without regard to the amortization deduction for such month. The 84-
month period shall begin on the first day of the first month of the 
second half of the taxable year in which the amortizable basis is 
acquired. 
"(b) LIMITATIONS.— 
"(1) MAXIMUM DOLLAR AMOUNT.—The aggregate amount of 
amortizable basis acquired during the taxable year which may be 
taken into account under subsection (a) for such taxable year 
shall not exceed $10,000 ($5,000 in the case of a separate return 
by a married individual (as defined in section 143)). 
26 USC 143. 
"(2) ALLOCATION OF DOLLAR UMIT.— 
"(A) CONTROLLED GROUP.—For purposes of applying the 
dollar limitation under paragraph (1)— 
"(i) all component members of a controlled group shall 
be treated as one taxpayer, and 
"(ii) the Secretary shall, under regulations prescribed 
by him, apportion such dollar limitation among the 
component members of such controlled group. 
For purposes of the preceding sentence, the term 'controlled 
group' has the meaning assigned to it by section 1563(a), 26 use 1563. 
except that the phrase 'more than 50 percent' shall be 
substituted for the phrase 'at least 80 percent' each place it 
appears in section 1563(a)(1). 
"(B) PARTNERSHIPS.—In the case of a partnership, the 
dollar limitation contained in paragraph (1) shall apply with 
respect to the partnership and with respect to each partner. 
"(3) SECTION NOT TO APPLY TO TRUSTS.—This section shall not 
apply to trusts. 
"(4) ESTATES.—The benefit of the deduction for amortization 
provided by this section shall be allowed to estates in the same 
manner as in the case of an individual. The allowable deduction 
shall be apportioned between the income beneficiary and the 
fiduciary under regulations prescribed by the Secretary. Any 
amount so apportioned to a beneficiary shall be taken into 
account for purposes of determining the amount allowable as a 
deduction under this section to such beneficiary. 
"(c) DEFINITIONS AND SPECIAL RULE.—For purposes of this section— 
94 STAT. 1990 
PUBLIC LAW 96-451—OCT. 14, 1980 
"(1) QUALIFIED TIMBER PROPERTY.—The term 'qualified timber 
property' means a woodlot or other site located in the United 
States which will contain trees in significant commercial quanti-
ties and which is held by the taxpayer for the planting, cultivat-
ing, caring for, and cutting of trees for sale or use in the 
commercial production of timber products. 
"(2) AMORTIZABLE BASIS.—The term 'amortizable basis' means 
that portion of the basis of the qualified timber property attribut-
able to reforestation expenditures. 
"(3) REFORESTATION EXPENDITURES.— 
"(A) IN GENERAL.—The term 'reforestation expenditures' 
means direct costs incurred in connection with forestation or 
reforestation by planting or artificial or natural seeding, 
including costs— 
"(i) for the preparation of the site; 
"(ii) of seeds or seedlings; and 
"(iii) for labor and tools, including depreciation of 
equipment such as tractors, trucks, tree planters, and 
similar machines used in planting or seeding. 
"(B) COST-SHARING PROGRAMS.—Reforestation expendi-
tures shall not include any expenditures for which the 
taxpayer has been reimbursed under any governmental 
reforestation cost-sharing program unless the amounts reim-
bursed have been included in the gross income of the 
taxpayer. 
"(4) BASIS ALLOCATION.—If the amount of the amortizable basis 
acquired during the taxable year of all qualified timber property 
with respect to which the taxpayer has made an election under 
subsection (a) exceeds the amount of the limitation under subsec-
tion (b)(1), the taxpayer shall allocate that portion of such 
amortizable basis with respect to which a deduction is allowable 
under subsection (a) to each such qualified timber property in 
such manner as the Secretary may by regulations prescribe. 
"(d) LIFE TENANT AND REMAINDERMAN.—In the case of property 
held by one person for life with remainder to another person, the 
deduction under this section shall be computed as if the life tenant 
were the absolute owner of the property and shall be allowed to the 
life tenant.". 
26 use 62. 
(b) ADJUSTED GROSS INCOME.—Section 62 of such Code (relating to 
definition of adjusted gross income) is amended by inserting after 
paragraph (14) the following: 
"(15) REFORESTATION EXPENSES.—The deduction allowed by 
Ante, p 1989. 
section 194.". 
(c) CONFORMING AMENDMENTS.— 
26 use 1245. 
(1)(A) Paragraph (2) of section 1245(a) of such Code (relating 
to gain from dispositions of certain depreciable property) is 
amended by striking out "190, 193" each place it appears and 
inserting in lieu thereof "190,193,194". 
(B) Paragraphs (2) and (3)(D) of such section 1245(a) are each 
amended by striking out "or 193" and inserting "193, or 194". 
(C) Section 1245(b) of such Code (relating to exceptions and 
limitations) is amended by adding at the end thereof the follow-
ing new paragraph: 
(8) TIMBER PROPERTY.—In determining, under subsection 
(a)(2), the recomputed basis of property with respect to which a 
deduction under section 194 was allowed for any taxable year, 
the taxpayer shall not take into account adjustments under 
section 194 to the extent such adjustments are attributable to the 
PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1991 
amortizable basis of the taxpayer acquired before the 10th 
taxable year preceding the taxable year in which gain with 
respect to the property is recognized.". 
(2) The table of sections for part VI of subchapter B of chapter 1 
of such Code is amended by inserting at the end thereof the 
following new item: 
"Sec. 194. Amortization of reforestation expenditures.". 
(d) EFFECTIVE DATE.—The amendments made by this section shall 26 use 194 note. 
apply with respect to additions to capital account made after Decem-
ber 31,1979. 
SEC. 302. INVESTMENT CREDIT. 
(a) GENERAL RULE.—Paragraph (1) of section 48(a) of the Internal 
Revenue Code of 1954 (relating to definition of section 38 property) is 26 USC 48, 38. 
amended— 
(1) by striking out the period at the end of subparagraph (E) 
and inserting ", or"; 
(2) by inserting after subparagraph (E) the following new 
subparagraph: 
"(F) in the case of qualified timber property (within the 
meaning of section 194(c)(1)), that portion of the basis of such Ante, p. 1989. 
property constituting the amortizable basis acquired during 
the taxable year (other than that portion of such amortizable 
basis attributable to property which otherwise qualifies as 
section 38 property) and taken into account under section 
194 (after the application of section 194(b)(1))."; and 
(3) by adding at the end thereof the following new sentence: 
"The preceding sentence shall not apply to property described in 
subparagraph (F) and, for purposes of this subpart, the useful life 
of such property shall be treated as its normal growing period.". 
(b) EFFECTIVE DATE,—The amendments made by this section shall 26 USC 48 note. 
apply with respect to additions to capital account made after Decem-
ber 31,1979. 
SEC. 303. REFORESTATION TRUST FUND. 
16 USC 1606a. 
(a) There is established in the Treasury of the United States a trust 
fund, to be known as the Reforestation Trust Fund (hereinafter in 
;. 
this section referred to as the "Trust Fund"), consisting of such 
amounts as are transferred to the Trust Fund under subsection (b)(1) 
and any interest earned on investment of amounts in the Trust Fund 
under subsection (c)(2). 
(b)(1) Subject to the limitation in paragraph (2), the Secretary of the 
Treasury shall transfer to the Trust Fund an amount equal to the 
sum of the tariffs received in the Treasury after September 30,1979, 
and before October 1, 1985, under subparts A and B of part 1 of 
schedule 2 of the Tariff Schedules of the United States (19 U.S.C. 
1202) and under part 3 of such schedule. 
(2) The Secretary shall not transfer more than $30,000,000 to the 
Trust Fund for any fiscal year. 
(3) The amounts required to be transferred to the Trust Fund under 
paragraph (1) shall be transferred at least quarterly from the general 
fund of the Treasury to the Trust Fund on the basis of estimates made 
by the Secretary of the Treasury. Proper adjustment shall be made in 
the amounts subsequently transferred to the extent prior estimates 
were in excess of or less than the amounts required to be transferred. 
(c)(1) It shall be the duty of the Secretary of the Treasury to hold the Report to 
Trust Fund, and (after consultation with the Secretary of Agricul- Congress, 
ture) to report to the Congress each year on the financial condition 
94 STAT. 1992 
PUBLIC LAW 96-451—OCT. 14, 1980 
Printing as 
House and 
Senate 
document. 
Investment. 
31 u s e 774. 
Appropriation 
authorization. 
and the results of the operations of the Trust Fund during the 
preceding fiscal year and on its expected condition and operations 
during the next fiscal year. Such report shall be printed as both a 
House and Senate document of the session of the Congress to which 
the report is made. 
(2)(A) It shall be the duty of the Secretary of the Treasury to invest 
such portion of the Trust Fund as is not, in his judgment, required to 
meet current withdrawals. Such investments may be made only in 
interest-bearing obligations of the United States or in obligations 
guaranteed as to both principal and interest by the United States. For 
such purpose, such obligations may be acquired (i) on original issue at 
the issue price, or (ii) by purchase of outstanding obligations at the 
market price. The purposes for which obligations of the United States 
may be issued under the Second Liberty Bond Act are hereby 
extended to authorize the issuance at par of special obligations 
exclusively to the Trust Fund. Such special obligations shall bear 
interest at a rate equal to the average rate of interest, computed as to 
the end of the calendar month next preceding the date of such issue, 
borne by all marketable interest-bearing obligations of the United 
States then forming a part of the Public Debt; except that where such 
average rate is not a multiple of one-eighth of 1 percent, the rate of 
interest of such special obligations shall be the multiple of one-eighth 
of 1 percent next lower than such average rate. Such special obliga-
tions shall be issued only if the Secretary of the Treasury determines 
that the purchase of other interest-bearing obligations of the United 
States, or of obligations guaranteed as to both principal and interest 
by the United States on original issue or at the market price, is not in 
the public interest 
(B) Any obligation acquired by the Trust Fund (except special 
obligations issued exclusively to the Trust Fund) may be sold by the 
Secretary of the Treasury at the market price, and such special 
obligations may be redeemed at par plus accrued interest. 
(C) The interest on, and the proceeds from the sale or redemption 
of, any obligations held in the Trust Fund shall be credited to and 
form a part of the Trust Fund. 
(d) For each of the first 5 fiscal years beginning after September 30, 
1980, there is authorized after that date to be appropriated to the 
Secretary of Agriculture, out of any amounts in the Trust Fund, an 
amount equal to the sum o
f
— 
(1) the amount by which— 
(A) the sum estimated by the Secretary of Agriculture for 
the fiscal year under section 3(d)(2) of the Forest and Range-
land Renewable Resources Planning Act of 1974 (16 U.S.C. 
1601(d)(2)) to be necessary for reforestation and other treat-
ment of acreage, as set forth in the report transmitted by the 
Secretary to the Congress under that section for the fiscal 
year, exceeds 
(B) the sum of the amounts appropriated for the fiscal year 
under the authorization contained in section 3(d)(3) of such 
Act and under any other provision of law to carry out the 
same purpose; and 
(2) such sums as are determined by the Secretary of Agricul-
ture to be properly allocable to administrative costs of the 
Federal Government incurred for the fiscal year in connection 
with the reforestation program carried out under that Act. 
PUBLIC LAW 96-451—OCT. 14, 1980 
94 STAT. 1993 
(e) The Secretary of the Treasury shall pay into the general fund of 
the Treasury any amounts, including interest earned on such 
amounts, remaining in the Trust Fund after September 30, 1985, 
which were not expended and remain in the Trust Fund. 
Approved October 14, 1980. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 96-591, Pt. I (Comm. on Merchant Marine and Fisheries) and 
Pt. II (Comm. on Ways and Means); and No. 96-1320 (Comm. of 
CONGRESSIONAL RECORD: 
Vol. 125 (1979): Dec. 3, considered and passed House. 
Vol. 126 (1980): Aug. 25, considered and passed Senate, amended. 
Sept. 10, Senate agreed to conference report. 
Sept. 25, House agreed to conference report and to Senate 
amendment to the title of the bill.