Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB1141 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 1141
5	5	To amend the Internal Revenue Code of 1986 to provide a special rule
6	6	for certain casualty losses of uncut timber.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	MARCH26, 2025
9	9	Mr. C
10	10	ASSIDY(for himself, Mr. WARNOCK, Mr. TUBERVILLE, Mr. KING, and
11	11	Mrs. B
12	12	RITT) introduced the following bill; which was read twice and re-
13	13	ferred to the Committee on Finance
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to provide
16	16	a special rule for certain casualty losses of uncut timber.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Disaster Reforestation 4
21	21	Act’’. 5
22	22	SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 6
23	23	(a) I
24	24	NGENERAL.—Section 165(b) of the Internal 7
25	25	Revenue Code of 1986 is amended— 8
26	26	(1) by striking ‘‘For purposes of subsection 9
27	27	(a)’’ and inserting the following: 10
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30	30	•S 1141 IS
31	31	‘‘(1) IN GENERAL.—For purposes of subsection 1
32	32	(a)’’, and 2
33	33	(2) by adding at the end the following new 3
34	34	paragraph: 4
35	35	‘‘(2) S
36	36	PECIAL RULE FOR CASUALTY LOSS OF 5
37	37	UNCUT TIMBER.— 6
38	38	‘‘(A) I
39	39	N GENERAL.—In the case of the loss 7
40	40	of any uncut timber from fire, storm, or other 8
41	41	casualty, or from theft, the basis for deter-9
42	42	mining the amount of the deduction for such 10
43	43	loss (as otherwise determined under paragraph 11
44	44	(1)) shall not be less than the excess of— 12
45	45	‘‘(i) the appraised value of such uncut 13
46	46	timber determined immediately before such 14
47	47	loss was sustained, over 15
48	48	‘‘(ii) the salvage value of such timber. 16
49	49	‘‘(B) A
50	50	PPRAISAL METHODS.— 17
51	51	‘‘(i) I
52	52	N GENERAL.—With respect to 18
53	53	the appraisal of a timber casualty loss de-19
54	54	scribed in subparagraph (A)— 20
55	55	‘‘(I) the appraisal valuation date 21
56	56	shall be not later than 1 year after 22
57	57	the casualty loss, and 23
58	58	‘‘(II) the appraisal shall— 24
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61	61	•S 1141 IS
62	62	‘‘(aa) conform to the Uni-1
63	63	form Standards of Professional 2
64	64	Appraisal Practice (USPAP), 3
65	65	‘‘(bb) be limited to the value 4
66	66	of the lost timber, and 5
67	67	‘‘(cc) be completed by a 6
68	68	Federal- or State-certified ap-7
69	69	praiser. 8
70	70	‘‘(ii) D
71	71	ELAY IN COMPLETION OF AP -9
72	72	PRAISAL.— 10
73	73	‘‘(I) I
74	74	N GENERAL.—In the case 11
75	75	of any taxpayer who is unable to ob-12
76	76	tain an appraisal described in clause 13
77	77	(i) before the due date of the return 14
78	78	of tax (including any extension of 15
79	79	time for filing such return) for the 16
80	80	taxable year in which the timber cas-17
81	81	ualty loss occurred, the taxpayer may 18
82	82	elect to— 19
83	83	‘‘(aa) with respect to the re-20
84	84	turn of tax for such taxable year, 21
85	85	include an estimate of the value 22
86	86	of the uncut timber determined 23
87	87	immediately before the loss was 24
88	88	sustained, and 25
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91	91	•S 1141 IS
92	92	‘‘(bb) upon completion of 1
93	93	the appraisal within the period 2
94	94	described in clause (i)(I), file an 3
95	95	amended return for such taxable 4
96	96	year with respect to any adjust-5
97	97	ment in taxable income as deter-6
98	98	mined pursuant to subclause (II). 7
99	99	‘‘(II) A
100	100	DJUSTMENT OF TAXABLE 8
101	101	INCOME.—With respect to any tax-9
102	102	payer who elects to provide an esti-10
103	103	mate described in subclause (I)(aa) 11
104	104	for any taxable year in which a timber 12
105	105	casualty loss occurred, the taxable in-13
106	106	come of the taxpayer for such taxable 14
107	107	year shall be increased or decreased, 15
108	108	as applicable, by an amount equal to 16
109	109	the difference between— 17
110	110	‘‘(aa) the appraised value of 18
111	111	such uncut timber determined 19
112	112	immediately before such loss was 20
113	113	sustained, as determined pursu-21
114	114	ant to the appraisal described in 22
115	115	clause (i), and 23
116	116	‘‘(bb) the estimate provided 24
117	117	by the taxpayer under subclause 25
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120	120	•S 1141 IS
121	121	(I)(aa) with respect to such 1
122	122	uncut timber. 2
123	123	‘‘(C) E
124	124	XCLUSION OF TIMBER NOT HELD 3
125	125	FOR SALE.—Subparagraph (A) shall not apply 4
126	126	to any timber unless such timber is held for the 5
127	127	purpose of being cut and sold in connection 6
128	128	with a trade or business that is not a passive 7
129	129	activity within the meaning of section 469. 8
130	130	‘‘(D) I
131	131	NCLUSION OF PRE -MERCHANTABLE 9
132	132	TIMBER.—For purposes of this paragraph, the 10
133	133	term ‘uncut timber’ shall not fail to include pre- 11
134	134	merchantable timber. 12
135	135	‘‘(E) R
136	136	EFORESTATION REQUIREMENT .— 13
137	137	‘‘(i) I
138	138	N GENERAL.—Subparagraph (A) 14
139	139	shall not apply unless the uncut timber 15
140	140	subject to the loss is reforested (with hard-16
141	141	woods, softwoods, or any combination 17
142	142	thereof) by planting, seeding, or appro-18
143	143	priate site preparation, not later than the 19
144	144	close of the 5-year period beginning on the 20
145	145	date of such loss. 21
146	146	‘‘(ii) R
147	147	ECAPTURE.—The Secretary 22
148	148	shall, by regulations, provide for recap-23
149	149	turing the benefit of any deduction allowed 24
150	150	under this section with respect to any 25
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153	153	•S 1141 IS
154	154	uncut timber subject to loss to which sub-1
155	155	paragraph (A) applied if the taxpayer fails 2
156	156	to comply with clause (i) during the period 3
157	157	provided under such clause. 4
158	158	‘‘(F) O
159	159	THER CASUALTIES.—For purposes 5
160	160	of subparagraph (A), the term ‘other casualty’ 6
161	161	shall include loss of any uncut timber from— 7
162	162	‘‘(i) wood-destroying insects, 8
163	163	‘‘(ii) wood-destroying invasive species, 9
164	164	or 10
165	165	‘‘(iii) severe drought.’’. 11
166	166	(b) E
167	167	FFECTIVEDATE.—The amendments made by 12
168	168	this section shall apply to losses sustained in taxable years 13
169	169	beginning after the date of the enactment of this Act. 14
170	170	Æ
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