[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4509 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4509

 To amend the Internal Revenue Code of 1986 to reduce to 36 months the 
 amortization period for reforestation expenditures and to increase to 
  $25,000 the maximum annual amount of such expenditures which may be 
                               amortized.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 6, 1998

 Mr. Turner (for himself, Mr. Frost, Mr. Pombo, Mr. Sessions, and Mr. 
   Price of North Carolina) 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 reduce to 36 months the 
 amortization period for reforestation expenditures and to increase to 
  $25,000 the maximum annual amount of such expenditures which may be 
                               amortized.

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

SECTION 1. MODIFICATIONS OF AMORTIZATION DEDUCTION FOR REFORESTATION 
              EXPENDITURES.

    (a) Reduction in Amortization Period.--Subsection (a) of section 
194 of the Internal Revenue Code of 1986 (relating to amortization of 
reforestation expenditures) is amended--
            (1) by striking ``84 months'' and inserting ``36 months'', 
        and
            (2) by striking ``84-month period'' and inserting ``36-
        month period''.
    (b) Increase in Maximum Amount Which May Be Amortized.--
            (1) In general.--Paragraph (1) of section 194(b) of such 
        Code is amended by striking ``$10,000 ($5,000'' and inserting 
        ``$25,000 (half such amount''.
            (2) Inflation adjustment of maximum amount.--Subsection (b) 
        of section 194 of such Code is amended by adding at the end the 
        following new paragraph:
            ``(5) Cost-of-living adjustment.--In the case of taxable 
        years beginning in a calendar year after 1999, the $25,000 
        amount set forth in paragraph (1) shall be increased by an 
        amount equal to--
                    ``(A) $25,000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year by 
                substituting `calendar year 1998' for `calendar year 
                1992' in subparagraph (B) thereof.
        If any increase under the preceding sentence is not a multiple 
        of $100, such increase shall be rounded to the nearest multiple 
        of $100.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1998.
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