S1141119th CongressWALLET

Disaster Reforestation Act

Sponsored By: Senator Sen. Cassidy, Bill [R-LA]

Introduced

Summary

Creates a minimum tax basis for casualty losses of uncut timber. The bill would set appraisal rules to value lost timber and require reforestation within five years to keep the deduction.

Show full summary
  • Timber owners and forest businesses — Owners in an active trade of cutting and selling timber would use the appraised pre-loss value minus salvage value to compute a casualty-loss deduction. Only timber held for cutting and sale that is not a passive activity qualifies.
  • Owners without a timely appraisal — Taxpayers may file an estimated pre-loss timber value with their return and later amend once a certified appraisal is done within 1 year, adjusting taxable income by the difference.
  • Appraisers and compliance — Appraisals must meet the Uniform Standards of Professional Appraisal Practice and be performed by a Federal or State certified appraiser. The Secretary could recapture the deduction if the taxpayer fails to reforest with hardwoods, softwoods, or both within 5 years.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

New tax rule for timber owners

If enacted, this bill would let timber owners in active, non‑passive businesses use a special rule to figure casualty losses. The deduction floor would be the timber's appraised value immediately before the loss minus its salvage value. Appraisals must follow USPAP, be done by a Federal or State certified appraiser, and have a valuation date not later than 1 year after the loss. If you cannot get an appraisal before the tax deadline (including extensions), you may estimate the value on your original return and later file an amended return to true up the difference. You would have to reforest the lost timber within 5 years, and the Secretary could recapture the tax benefit if you fail to reforest. The rule would cover losses from fire, storm, theft, wood‑destroying insects, invasive species, and severe drought, and it would apply to losses in tax years beginning after enactment.

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Sponsors & CoSponsors

Sponsor

Sen. Cassidy, Bill [R-LA]

LA • R

Cosponsors

  • Raphael Warnock

    GA • D

    Sponsored 3/26/2025

  • Tommy Tuberville

    AL • R

    Sponsored 3/26/2025

  • Angus King

    ME • I

    Sponsored 3/26/2025

  • Katie Britt

    AL • R

    Sponsored 3/26/2025

  • Sen. Ossoff, Jon [D-GA]

    GA • D

    Sponsored 4/28/2025

  • Susan Collins

    ME • R

    Sponsored 4/28/2025

  • Cindy Hyde-Smith

    MS • R

    Sponsored 10/28/2025

  • John Boozman

    AR • R

    Sponsored 2/10/2026

Roll Call Votes

No roll call votes available for this bill.

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