[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6439 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6439

 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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 19, 2012

   Mrs. Black (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.

    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 ``Keep the Forest in the Family Estate 
Tax Act of 2012''.

SEC. 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.

SEC. 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.

SEC. 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.
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