HR262119th CongressWALLET

Disaster Reforestation Act

Sponsored By: Representative Carter, Earl L. "Buddy" [R-GA-1]

Introduced

Summary

Creates a special tax rule that lets timber owners deduct casualty losses of uncut timber based on an appraisal of pre-loss value and requires reforestation within five years. It would set appraisal standards, allow an initial taxpayer estimate with a later amended return, and authorize regulatory recapture if reforestation is not completed.

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  • Owners who hold timber to be cut and sold in an active trade or business would be eligible. Casualties covered include fire, storm, theft, wood-destroying insects, invasive species, and severe drought, and "uncut timber" includes pre-merchantable timber.
  • Appraisals must be done by a Federal or State certified appraiser following the Uniform Standards of Professional Appraisal Practice with a valuation date no later than 1 year after the loss. Taxpayers may instead report an estimate on the original return and file an amended return after the appraisal to adjust taxable income by the difference.
  • The lost timber must be reforested by planting, seeding, or appropriate site preparation within 5 years using hardwoods, softwoods, or both. The Secretary would issue regulations to recapture tax benefits if the reforestation requirement is not met.

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Bill Overview

Analyzed Economic Effects

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

Tax relief for timber businesses after loss

If enacted, timber businesses that lose uncut trees could claim a larger casualty-loss deduction. The deduction floor would equal the appraised value right before the loss minus any salvage value. It would cover fire, storms, theft, wood-destroying insects or invasive species, and severe drought, including young (pre-merchantable) trees, and only for timber held to be cut and sold in an active business (not passive). The appraisal must be dated within 1 year, follow the Uniform Standards of Professional Appraisal Practice, be limited to the lost timber, and be done by a state or federal certified appraiser. If you cannot get an appraisal by your filing due date, you could file using an estimate and later amend after the appraisal to adjust your income. You would need to reforest within 5 years or the deduction could be taken back. This would apply to losses in tax years that begin after enactment.

Sponsors & CoSponsors

Sponsor

Carter, Earl L. "Buddy" [R-GA-1]

GA • R

Cosponsors

  • Sewell

    AL • D

    Sponsored 1/9/2025

  • Rep. Guest, Michael [R-MS-3]

    MS • R

    Sponsored 1/22/2025

  • Sessions

    TX • R

    Sponsored 1/23/2025

  • Rep. Rouzer, David [R-NC-7]

    NC • R

    Sponsored 1/28/2025

  • Rep. Rogers, Mike D. [R-AL-3]

    AL • R

    Sponsored 1/31/2025

  • Rep. Collins, Mike [R-GA-10]

    GA • R

    Sponsored 2/5/2025

  • Rep. Westerman, Bruce [R-AR-4]

    AR • R

    Sponsored 2/11/2025

  • Rep. Scott, Austin [R-GA-8]

    GA • R

    Sponsored 2/21/2025

  • Rep. Letlow, Julia [R-LA-5]

    LA • R

    Sponsored 3/3/2025

  • Rep. Lawler, Michael [R-NY-17]

    NY • R

    Sponsored 4/7/2025

  • Rep. Vindman, Eugene Simon [D-VA-7]

    VA • D

    Sponsored 8/8/2025

  • Rep. Moore, Barry [R-AL-1]

    AL • R

    Sponsored 8/15/2025

  • Allen

    GA • R

    Sponsored 9/18/2025

  • Jack

    GA • R

    Sponsored 9/23/2025

  • Rep. Fitzpatrick, Brian K. [R-PA-1]

    PA • R

    Sponsored 9/26/2025

  • Rep. Perez, Marie Gluesenkamp [D-WA-3]

    WA • D

    Sponsored 9/26/2025

  • Rep. Huffman, Jared [D-CA-2]

    CA • D

    Sponsored 9/26/2025

  • Rep. Panetta, Jimmy [D-CA-19]

    CA • D

    Sponsored 9/30/2025

  • Bishop

    GA • D

    Sponsored 10/10/2025

  • Rutherford

    FL • R

    Sponsored 10/17/2025

  • Pingree

    ME • D

    Sponsored 11/7/2025

  • Edwards

    NC • R

    Sponsored 12/1/2025

  • Rep. Bergman, Jack [R-MI-1]

    MI • R

    Sponsored 1/8/2026

  • Rep. Murphy, Gregory F. [R-NC-3]

    NC • R

    Sponsored 2/24/2026

  • Rep. Moran, Nathaniel [R-TX-1]

    TX • R

    Sponsored 4/21/2026

Roll Call Votes

No roll call votes available for this bill.

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