Sec. 3118. Treatment of reforestation expenditures

278 words·~1 min read·/bill/113/hr/1/ih/section-3118

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Section 194 is amended by striking subsections

(a)and (b), by redesignating subsection

(c)and

(d)as subsections

(b)and (c), respectively, and by inserting before subsection

(b)(as so redesignated) the following new subsection: In the case of a taxpayer’s qualified reforestation expenditures for any taxable year— except as provided in paragraph (2), no deduction shall be allowed for such expenditures, and the taxpayer shall— charge such expenditures to capital account, and be allowed an amortization deduction of such expenditures ratably over the 7-year period beginning with the midpoint of the taxable year in which such expenditures are paid or incurred. . Section 194(b), as redesignated by subsection (a), is amended by striking paragraph (2), by redesignating paragraph

(1)as paragraph (2), and by inserting before paragraph

(2)(as so redesignated the following new paragraph: The term qualified reforestation expenditures means, with respect to any taxable year, the reforestation expenditures paid or incurred by the taxpayer during such taxable year with respect to qualified timber property. . Section 194(b)(2), as redesignated by subsections

(a)and (b), is amended to read as follows: The term qualified timber property means a woodlot or other site located in the United States which— will contain evergreen trees in significant commercial quantities which are reasonably expected to be more than 6 years old at the time severed from the roots, and is held by the taxpayer for the planting, cultivating, caring for, and cutting of such trees for sale for ornamental purposes. . Section 1245(b) is amended by striking paragraph (7). The amendments made by this section shall apply to expenditures paid or incurred in taxable years beginning after December 31, 2014.