Forest Recovery Act

II 116TH CONGRESS 1ST SESSION S. 1687 To amend the Internal Revenue Code of 1986 to provide a special rule for certain casualty losses of uncut timber. IN THE SENATE OF THE UNITED STATES MAY 23 (legislative day, MAY 22), 2019 Mrs. HYDE-SMITH (for herself, Mr. WICKER, Mr. RUBIO, and Mr. COTTON) introduced the following bill; which was read twice and referred to the Committee on Finance 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- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Forest Recovery Act’’. 4 SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 5 (a) IN GENERAL.—Section 165(b) of the Internal 6 Revenue Code of 1986 is amended— 7 (1) by striking ‘‘For purposes of subsection 8 (a)’’ and inserting the following: 9 VerDate Sep 11 2014 05:29 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1687.IS S1687 kjohnson on DSK79L0C42 with BILLS 2 •S 1687 IS ‘‘(1) IN GENERAL.—For purposes of subsection 1 (a)’’; and 2 (2) by adding at the end the following new 3 paragraph: 4 ‘‘(2) SPECIAL RULE FOR CASUALTY LOSS OF 5 UNCUT TIMBER.— 6 ‘‘(A) IN GENERAL.—In the case of the loss 7 of any uncut timber from fire, storm, or other 8 casualty, or from theft, the basis for deter- 9 mining the amount of the deduction for such 10 loss (as otherwise determined under paragraph 11 (1)) shall not be less than the excess of— 12 ‘‘(i) the fair market value of such 13 uncut timber determined immediately be- 14 fore such loss was sustained, over 15 ‘‘(ii) the salvage value of such timber. 16 ‘‘(B) EXCLUSION OF TIMBER NOT HELD 17 FOR SALE.—Subparagraph (A) shall not apply 18 to any timber unless such timber is held for the 19 purpose of being cut and sold. 20 ‘‘(C) INCLUSION OF PRE-MERCHANTABLE 21 TIMBER.—For purposes of this paragraph, the 22 term ‘uncut timber’ shall not fail to include pre- 23 merchantable timber. 24 VerDate Sep 11 2014 05:29 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1687.IS S1687 kjohnson on DSK79L0C42 with BILLS 3 •S 1687 IS ‘‘(D) REFORESTATION REQUIREMENT.— 1 Subparagraph (A) shall not apply unless the 2 uncut timber subject to the loss is reforested 3 (with hardwoods, softwoods, or any combination 4 thereof) by planting, seeding, or appropriate 5 site preparation, not later than the close of the 6 5-year period beginning on the date of such 7 loss.’’. 8 (b) EXCEPTION TO REPEAL OF PERSONAL CAS- 9 UALTY LOSSES.—Section 165(h)(5)(A) is amended by in- 10 serting ‘‘or a loss of uncut timber (within the meaning 11 of subsection (b)(2)) to which subsection (b)(2)(A) ap- 12 plies’’ after ‘‘Federally declared disaster (as defined in 13 subsection (i)(5))’’. 14 (c) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to taxable years beginning after 16 the date of the enactment of this Act. 17 Æ VerDate Sep 11 2014 05:29 Jun 04, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S1687.IS S1687 kjohnson on DSK79L0C42 with BILLS