[Congressional Record Volume 155, Number 15 (Monday, January 26, 2009)]
[Senate]
[Page S834]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. LINCOLN (for herself, Mr. Crapo, Mr. Alexander, Mr. 
        Pryor, Mr. Cornyn, Ms. Cantwell, Ms. Landrieu, Mrs. Murray, and 
        Mr. Vitter):
  S. 316. 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; to the Committee on Finance.
  Mrs. LINCOLN. Mr. President, I am very pleased to rise today to 
introduce the Timber Revitalization and Economic Enhancement Act II of 
2009 with my good friend, Senator Crapo of Idaho. I also want to say a 
special thanks to our cosponsors, Senators Alexander, Pryor, Cornyn, 
Cantwell, Landrieu, Murray, and Vitter.
  This legislation has commonly been referred to as the TREE Act. I 
appreciate that Congress understood the importance of the TREE Act with 
its inclusion and enactment in the Farm Bill last year. But, 
unfortunately, this tax policy is already set to expire in May. So 
today, my colleagues and I introduce the TREE Act II to make this 
important forest policy permanent.
  In my home State of Arkansas, the forest products industry is a 
foundation of our economy and culture. More than 50 percent of Arkansas 
land is forested. Much of this is sustainably managed to create 
products we use every day. In addition, there are jobs associated with 
the growing of these forests and manufacture of these great products. 
More than 32,000 Arkansas men and women work in our woods, at our 
sawmills and in our paper mills. These are good jobs located in our 
small rural towns.
  However, these jobs and this industry continue to face many 
challenges. During this economic crisis, the forest products industry 
has suffered greater dislocation than many others, and since 2006 has 
lost more than 181,000 jobs or roughly 14 percent of our workforce. The 
wood products industry has been particularly hard hit with 20 percent 
drops in employment. In Arkansas the impact is even greater, with a 
predicted 24 percent job loss in the wood products industry.
  The TREE Act II helps address these challenges. Just as it is 
important to have diversity in our forests, it is also important to 
maintain diversity in our forestry industry, and we must ensure that 
all business forms have the necessary tools so they can be successful 
in the global marketplace. Timber companies that are organized as 
corporations continue to be under intensifying pressure to reorganize. 
In that case, a corporation that owns substantial manufacturing 
facilities would be forced to sell some of those facilities and to make 
other structural changes in order to comply with the relevant tax rules 
that it would newly become subject to. This would likely cause 
disruptions in many of these communities and would also make it harder 
for U.S. companies to compete internationally.
  In Arkansas, like so many other States across our Nation, a strong 
forest product industry is essential to having a strong economy. A 
permanent solution to the TREE Act II is imperative for this industry 
and supporting the jobs it provides. I look forward to working with my 
colleagues on the Senate Finance Committee to ensure this important tax 
policy is made permanent.
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