Sec. 201 Treatment of timber gains
Special rate made permanent— Paragraph (1) of section 1201(b) of the Internal Revenue Code of 1986 is amended by striking “ending after the date” and all that follows through “after such date” and inserting “beginning after the date of the enactment of the Oregon and California Land Grant Act of 2014”.
Adjustment of special rate—
In general— Clause (i) of section 1201(b)(1)(B) of such Code is amended by striking “15 percent” and inserting “20 percent”.
Conforming amendment— Section 55(b) of such Code is amended by striking paragraph (4).
Computation for taxable years in which rate first applies— Paragraph (3) of section 1201(b) of such Code is amended to read as follows:
“(3) Computation for taxable years in which rate first applies—In the case of any taxable year which includes the date of the enactment of the Oregon and California Land Grant Act of 2014, the qualified timber gain for such year shall not exceed the qualified timber gain properly taken into account for the portion of the year after such date.”
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.