Disaster Reforestation Act

“(1) In general—For purposes of subsection (a)”

“(2) Special rule for casualty loss of uncut timber

“(A) In general—In the case of the loss of any uncut timber from fire, storm, insects, invasive species, drought, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss (as otherwise determined under paragraph (1)) shall not be less than the excess of—

“(i) the value of such uncut timber determined immediately before such loss was sustained, over

“(ii) the salvage value of such timber.

“(B) Appraisal methods—With respect to the appraisal of a timber casualty loss described in subparagraph (A)—

“(i) the appraisal valuation date shall be not later than 1 year after the casualty loss; and

“(ii) the appraisal shall—

“(I) conform to the Uniform Standards of Professional Appraisal Practice (USPAP);

“(II) be limited to the value of the lost timber; and

“(III) be completed by a Federal- or State-certified appraiser.

“(C) Exclusion of timber not held for sale—Subparagraph (A) shall not apply to any timber unless such timber is held for the purpose of being cut and sold in connection with a trade or business that is not a passive activity within the meaning of section 469.

“(D) Inclusion of pre-merchantable timber—For purposes of this paragraph, the term uncut timber shall not fail to include pre-merchantable timber.

“(E) Reforestation requirement—Subparagraph (A) shall not apply unless the uncut timber subject to the loss is reforested (with hardwoods, softwoods, or any combination thereof) by planting, seeding, or appropriate site preparation, not later than the close of the 5-year period beginning on the date of such loss.”