Tax Relief for Commercial Timber Owners After Disaster Losses and Reforestation Requirement.
This law changes how commercial timber owners calculate tax deductions for uncut timber lost due to disasters like fire, storms, or drought. It allows for a higher deduction based on the timber's appraised value before the loss, minus any salvage value. This financial support is conditional on the owner reforesting the affected land within five years, encouraging rapid environmental recovery.
Key points
Commercial timber owners can claim larger casualty losses based on the pre-disaster appraised value of the lost timber, rather than just the original cost basis.
The tax benefit requires the owner to reforest the damaged area within 5 years; failure to do so results in the tax deduction being revoked (recaptured).
The definition of qualifying disasters is expanded to explicitly include damage from wood-destroying insects, invasive species, and severe drought.
Expired
Citizen Poll