H.R. 6439 (112th): Keep the Forest in the Family Estate Tax Act of 2012

112th Congress, 2011–2013. Text as of Sep 19, 2012 (Introduced).

Status & Summary | PDF | Source: GPO

I

112th CONGRESS

2d Session

H. R. 6439

IN THE HOUSE OF REPRESENTATIVES

September 19, 2012

(for herself, Mr. Michaud, Mr. Ribble, Mr. Bonner, Mr. Herger, Mr. Thompson of Pennsylvania, Mrs. Blackburn, Mr. Duncan of Tennessee, and Mr. Kissell) introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to provide an exception to the imposition of the additional estate tax for severance of standing timber harvested consistent with a forest management plan.

1.

Short title

This Act may be cited as the Keep the Forest in the Family Estate Tax Act of 2012.

2.

Woodlands subject to management plan

(a)

In general

Paragraph (2) of section 2032A(c) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:

(F)

Exception for woodlands subject to management plan

Subparagraph (E) shall not apply to any disposition or severance of standing timber on a qualified woodland if the harvest is—

(i)

consistent with a written forest management plan developed under the Cooperative Forestry Assistance Act of 1978 (16 U.S.C. 2103a), or an equivalent plan approved by the State Forester,

(ii)

conducted under the guidance of a qualified forestry professional (as determined by the Secretary in consultation with the United States Forest Service), or

(iii)

conducted on lands certified to a third-party audited forest certification system or similar land management protocol, as determined by the Untied States Forest Service.

.

(b)

Effective date

The amendment made by subsection (a) shall apply to the disposition or severance of standing timber after the date of the enactment of this Act.

3.

Report on simplifying special use valuation for woodlands

(a)

Report required

Not later than 180 days after the date of the enactment of this Act, the Commissioner of the Internal Revenue Service, in cooperation with the Chief of the U.S. Forest Service, shall submit to the Senate Finance Committee and the House Ways and Means Committees a report on the use of section 2032A of the Internal Revenue Code of 1986 by woodland owners and recommendations to simplify this provision for use by such owners.

(b)

Contents of report

The report shall include the following elements:

(1)

An analysis of barriers woodland owners may face to using this section including difficulties with meeting material participation requirements and lack of consistent woodland valuation methods.

(2)

Recommendations for simplifying valuation of woodlands and material participation requirements for purposes of Section 2032A of the Internal Revenue Code of 1986.

4.

Increase limitation on aggregate reduction in fair market value

(a)

In general

Paragraphs (2) and (3) of section 2032A(a) of the Internal Revenue Code of 1986 are both amended by striking $750,000 each place it appears and inserting $5,000,000.

(b)

Additional modification to inflation adjustment

Paragraph (3) of such Code, as amended by subsection (a), is amended—

(1)

by striking 1998 and inserting 2012, and

(2)

by striking 1997 and inserting 2011.

(c)

Effective date

The amendment made by subsection (a) shall apply to estates of decedents dying after December 31, 2012.