S.Amdt. 199

SA 199. Mr. LINCOLN submitted an amendment intended to be proposed to
amendment SA 98 proposed by Mr. Inouye (for himself and Mr. Baucus) to
the bill H.R. 1, making supplemental appropriations for job
preservation and creation, infrastructure investment, energy efficiency
and science, assistance to the unemployed, and State and local fiscal
stabilization, for fiscal year ending September 30, 2009, and for other
purposes; which was ordered to lie on the table; as follows:

On page 570, after line 8, insert the following:

SEC. --. EXTENSION OF REDUCTION IN RATE OF TAX ON QUALIFIED
TIMBER GAIN OF CORPORATIONS.

(a) In General.--Section 1201(b)(1) is amended by striking
``1 year after such date'' and inserting ``3 years after such
date''.
(b) Conforming Amendment.--Subparagraph (B) of section
1201(b)(3) is amended by striking ``1 year after such date''
and inserting ``3 years after such date''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. --. EXTENSION OF TIMBER REIT MODERNIZATION AND
MODIFCATION OF PROHIBITED TRANSACTION RULES FOR
TIMBER PROPERTY.

(a) In General.--Paragraph (8) of section 856(c) is
amended--
(1) by striking ``the taxpayer's first taxable year'' and
inserting ``the taxpayer's third taxable year'', and
(2) by striking ``1 year after such date'' and inserting
``3 years after such date''.
(b) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.

SEC. --. EXTENSION OF QUALIFICATION OF MINERAL ROYALTY INCOME
FOR TIMBER REITS.

(a) In General.--Section 856(c)(2)(I) is amended by
inserting ``, second, or third'' after ``the first''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after the date of the
enactment of this Act.
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