II
110th CONGRESS
2d Session
S. 3399
IN THE SENATE OF THE UNITED STATES
July 31, 2008
Mrs. Lincoln (for herself, Mr. Smith, Ms. Cantwell, Mr. Cornyn, Mrs. Murray, Mrs. Dole, Ms. Landrieu, Mr. Chambliss, Mr. Wicker, and Mr. Vitter) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to make permanent the reduction in the rate of tax on qualified timber gain of corporations, and for other purposes.
Short title
This Act may be cited as the
Timber Revitalization and Economic
Enhancement Act II of 2008
.
Permanent reduction in rate of tax on qualified timber gain of corporations
In general
Section 1201(b)(1) of
the Internal Revenue Code of 1986 is amended by striking and beginning
on or before the date which is 1 year after such date
.
Conforming amendment
Paragraph (3) of section 1201(b) of the Internal Revenue Code of 1986 is amended to read as follows:
Computation for taxable years in which rate first applies
In the case of any taxable year which includes the date set forth in paragraph (1), 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 take effect as if included in the amendment made by section 15311(a) of the Food, Conservation, and Energy Act of 2008.
Permanent timber REIT modernization
In general
Section 856(c)(5)(H) of the Internal Revenue Code of 1986 is amended by striking clause (iii).
Conforming amendment
Section 856(c) of the Internal Revenue Code of 1986 is amended by striking paragraph (8).
Effective date
The amendments made by this section shall take effect as if included in the amendment made by section 15312 of the Food, Conservation, and Energy Act of 2008.
Permanent qualification of mineral royalty income for timber REITs
In general
Section 856(c)(2)(I) of the Internal Revenue Code of 1986
is amended by striking the first taxable year beginning after the date
of the enactment of this subparagraph
and inserting any taxable
year
.
Effective date
The amendment made by this section shall take effect as if included in the amendment made by section 15313(a) of the Food, Conservation, and Energy Act of 2008.
Permanent modifcation of prohibited transaction rules for timber property
In general
Section
857(b)(6)(D)(v) of the Internal Revenue Code of 1986 is amended by striking
, in the case of a sale on or before the termination
date,
.
Section
857(b)(6)(H) of such Code is amended by striking In the case of a sale
on or before the termination date, the sale
and inserting The
sale
.
Section 857(b)(6) of such Code is amended by striking subparagraph (I).
Effective date
The amendments made by this section shall take effect as if included in the amendments made by section 15315 of the Food, Conservation, and Energy Act of 2008.