Bill > HR262

This bill, known as the Disaster Reforestation Act, amends the Internal Revenue Code to provide a special tax deduction method for timber owners who experience casualty losses of uncut timber. The bill allows timber owners to calculate their tax deduction based on the difference between the timber's appraised value immediately before the loss and its salvage value, with some important conditions. Specifically, the appraisal must be completed by a certified professional within one year of the loss, follow professional appraisal standards, and be limited to the value of the lost timber. Taxpayers can initially estimate the timber's value on their tax return and later file an amended return with the final appraisal. The bill applies to timber losses from events like fire, storms, theft, wood-destroying insects, invasive species, and severe drought. To qualify for the special deduction, the timber must be held for commercial sale, and the owner must reforest the area within five years using hardwoods, softwoods, or a combination. If the reforestation requirement is not met, the tax benefit may be recaptured. The changes will apply to timber losses in tax years beginning after the bill's enactment date.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/262/all-info