Read twice and referred to the Committee on Finance.
The bill amends Internal Revenue Code section 165 to create a special rule for casualty losses of uncut timber.
It sets a minimum deductible loss equal to the appraised pre-loss value minus salvage value, requires USPAP-compliant appraisals, allows estimates with later adjustments, excludes timber not held for sale in an active trade or business, includes pre-merchantable timber, requires reforestation within five years with recapture for noncompliance, and explicitly covers losses from insects, invasive species, and severe drought.
The rule applies to taxable years beginning after enactment.
Targeted, administrable relief increases prospects, but absent offsets or budget scoring and fiscal scrutiny reduces likelihood.
Relative to its intended legislative type, this bill is a well-scoped substantive amendment to the tax code that provides clear primary rules for casualty losses of uncut timber and a number of specific operational requirements (appraisal standards, timing, reforestation requirement). It appropriately delegates technical and enforcement detail to the Secretary by regulation, but omits explicit fiscal acknowledgement and leaves several implementation details to administrative action.
Liberals emphasize environmental safeguards and public benefit requirements
Liberals emphasize environmental safeguards and public benefit requirements
Generally supportive of incentives for reforestation and recognizing climate-driven losses from insects and drought, but cautious about industry carve-outs and revenue loss.
Wants strong enforcement, ecological standards for replanting, and protections to ensure public benefit rather than simply subsidizing large landowners or corporations.
Views the bill as a targeted disaster-relief tax rule with sensible appraisal standards, but wants clarity on fiscal cost and administrative burden.
Likely open to the measure if accompanied by clear recapture rules, administrative resources, and reasonable budget offsets or cost estimates.
Likely favorable because it provides tax relief to property owners and timber businesses after disasters and incentivizes replanting.
Some skepticism about appraisal mandates and recapture mechanics, but overall aligns with compensating lawful private losses and restoring productive land.
Reached or meaningfully advanced
Reached or meaningfully advanced
Still ahead
Still ahead
Still ahead
Targeted, administrable relief increases prospects, but absent offsets or budget scoring and fiscal scrutiny reduces likelihood.
The bill has not accumulated any surfaced votes yet.
Liberals emphasize environmental safeguards and public benefit requirements
Targeted, administrable relief increases prospects, but absent offsets or budget scoring and fiscal scrutiny reduces likelihood.
Relative to its intended legislative type, this bill is a well-scoped substantive amendment to the tax code that provides clear primary rules for casualty losses of uncut timber and a number of specific operational requ…
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