II
119THCONGRESS
1
STSESSION S. 1141
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
MARCH26, 2025
Mr. C
ASSIDY(for himself, Mr. WARNOCK, Mr. TUBERVILLE, Mr. KING, and
Mrs. B
RITT) introduced the following bill; which was read twice and re-
ferred 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 ‘‘Disaster Reforestation 4
Act’’. 5
SEC. 2. CASUALTY LOSSES OF UNCUT TIMBER. 6
(a) I
NGENERAL.—Section 165(b) of the Internal 7
Revenue Code of 1986 is amended— 8
(1) by striking ‘‘For purposes of subsection 9
(a)’’ and inserting the following: 10
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•S 1141 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) S
PECIAL RULE FOR CASUALTY LOSS OF 5
UNCUT TIMBER.— 6
‘‘(A) I
N 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 appraised value of such uncut 13
timber determined immediately before such 14
loss was sustained, over 15
‘‘(ii) the salvage value of such timber. 16
‘‘(B) A
PPRAISAL METHODS.— 17
‘‘(i) I
N GENERAL.—With respect to 18
the appraisal of a timber casualty loss de-19
scribed in subparagraph (A)— 20
‘‘(I) the appraisal valuation date 21
shall be not later than 1 year after 22
the casualty loss, and 23
‘‘(II) the appraisal shall— 24
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‘‘(aa) conform to the Uni-1
form Standards of Professional 2
Appraisal Practice (USPAP), 3
‘‘(bb) be limited to the value 4
of the lost timber, and 5
‘‘(cc) be completed by a 6
Federal- or State-certified ap-7
praiser. 8
‘‘(ii) D
ELAY IN COMPLETION OF AP -9
PRAISAL.— 10
‘‘(I) I
N GENERAL.—In the case 11
of any taxpayer who is unable to ob-12
tain an appraisal described in clause 13
(i) before the due date of the return 14
of tax (including any extension of 15
time for filing such return) for the 16
taxable year in which the timber cas-17
ualty loss occurred, the taxpayer may 18
elect to— 19
‘‘(aa) with respect to the re-20
turn of tax for such taxable year, 21
include an estimate of the value 22
of the uncut timber determined 23
immediately before the loss was 24
sustained, and 25
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‘‘(bb) upon completion of 1
the appraisal within the period 2
described in clause (i)(I), file an 3
amended return for such taxable 4
year with respect to any adjust-5
ment in taxable income as deter-6
mined pursuant to subclause (II). 7
‘‘(II) A
DJUSTMENT OF TAXABLE 8
INCOME.—With respect to any tax-9
payer who elects to provide an esti-10
mate described in subclause (I)(aa) 11
for any taxable year in which a timber 12
casualty loss occurred, the taxable in-13
come of the taxpayer for such taxable 14
year shall be increased or decreased, 15
as applicable, by an amount equal to 16
the difference between— 17
‘‘(aa) the appraised value of 18
such uncut timber determined 19
immediately before such loss was 20
sustained, as determined pursu-21
ant to the appraisal described in 22
clause (i), and 23
‘‘(bb) the estimate provided 24
by the taxpayer under subclause 25
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(I)(aa) with respect to such 1
uncut timber. 2
‘‘(C) E
XCLUSION OF TIMBER NOT HELD 3
FOR SALE.—Subparagraph (A) shall not apply 4
to any timber unless such timber is held for the 5
purpose of being cut and sold in connection 6
with a trade or business that is not a passive 7
activity within the meaning of section 469. 8
‘‘(D) I
NCLUSION OF PRE -MERCHANTABLE 9
TIMBER.—For purposes of this paragraph, the 10
term ‘uncut timber’ shall not fail to include pre- 11
merchantable timber. 12
‘‘(E) R
EFORESTATION REQUIREMENT .— 13
‘‘(i) I
N GENERAL.—Subparagraph (A) 14
shall not apply unless the uncut timber 15
subject to the loss is reforested (with hard-16
woods, softwoods, or any combination 17
thereof) by planting, seeding, or appro-18
priate site preparation, not later than the 19
close of the 5-year period beginning on the 20
date of such loss. 21
‘‘(ii) R
ECAPTURE.—The Secretary 22
shall, by regulations, provide for recap-23
turing the benefit of any deduction allowed 24
under this section with respect to any 25
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uncut timber subject to loss to which sub-1
paragraph (A) applied if the taxpayer fails 2
to comply with clause (i) during the period 3
provided under such clause. 4
‘‘(F) O
THER CASUALTIES.—For purposes 5
of subparagraph (A), the term ‘other casualty’ 6
shall include loss of any uncut timber from— 7
‘‘(i) wood-destroying insects, 8
‘‘(ii) wood-destroying invasive species, 9
or 10
‘‘(iii) severe drought.’’. 11
(b) E
FFECTIVEDATE.—The amendments made by 12
this section shall apply to losses sustained in taxable years 13
beginning after the date of the enactment of this Act. 14
Æ
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