[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4330 Introduced in House (IH)]




105th CONGRESS
  2d Session
                                H. R. 4330

   To amend the Internal Revenue Code of 1986 to allow capital gains 
 treatment and an exception from the uniform capitalization rules for 
         timber which is more than 4 years old when harvested.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 1998

  Mr. Collins  (for himself and Mr. Tanner) 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 allow capital gains 
 treatment and an exception from the uniform capitalization rules for 
         timber which is more than 4 years old when harvested.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Christmas Tree Tax Equity Act''.

SEC. 2. CAPITAL GAIN TREATMENT ON TIMBER WHICH IS MORE THAN 4 YEARS OLD 
              WHEN HARVESTED.

    (a) In General.--The last sentence of section 631(a) of the 
Internal Revenue Code of 1986 (relating to election to consider cutting 
as sale or exchange) is amended by striking ``6 years'' and inserting 
``4 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 1998.

SEC. 3. EXCEPTION FROM UNIFORM CAPITALIZATION RULES FOR TIMBER WHICH IS 
              MORE THAN 4 YEARS OLD WHEN HARVESTED.

    (a) In General.--The last sentence of section 263A(e)(4)(B) of the 
Internal Revenue Code of 1986 (defining farming business) is amended by 
striking ``6 years'' and inserting ``4 years''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to costs incurred in taxable years beginning after December 31, 
1998.
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