Energy Security Act • Act of June 30, 1980 (P.L. 96-294, 94 Stat. 611; 42 U.S.C. 8801(note), 8854, 8855) * * TITLE II--BIOMASS ENERGY AND ALCOHOL FUELS SHORT TITLE Sec. 201. This title may be cited as the "Biomas s Energy and Alcohol Fuels Act of 1980". (42 U.S.C. 8801(note)) * * * UTILIZATION OF NATIONAL FOREST SYSTEM IN WOOD ENERGY Sec. 261. The Secretary of Agriculture may make available the timber resources of the National Forest System, in accordance with appropriate timber appraisal and sale procedures, for use by biomass energy projects. (42 U.S.C. 8854) FOREST SERVICE LEASES AND PERMITS Sec. 262. It is the intent of the Congress that_the Secretary of Agriculture shall process applications for leases of National Forest System lands and for permits to explore, drill, and develop resources on land leased from the Forest Service, notwithstanding the current status of any plan being prepared under section 6 of the Forest and Rangeland Renewable Resources Planning Act of 1974 (16 U.S.C. 1604). (42 U.S.C. 8855) Reforestation Tax Incentives and Trust • Act of October 14, 1980 (P.L. 96-451, 94 Stat. 1983; codified as amended in scattered sections of 26 U.S.C.) (a) In General.--Part VI of subchapter B of chapter 1 of the Internal Revenue Code of 1954 (relating to itemized deductions for individuals and corporations) is amended by adding at the end thereof the following new section: "Sec. 194. AMORTIZATION OF REFORESTATION EXPENDITURES. "(a) Allowance of Deduction.--In the case of any qualified timber property with respect to which the taxpayer has made (in accordance with regulations prescribed by the Secretary) an election under this subsection, the taxpayer shall be entitled to a deduction with respect to the amortization of the amortizable basis of qualified timber property based on a period of 84 months. Such amortization deduction shall be an amount, with respect to each month of such period within the taxable year, equal to the amortizable basis at the end of such month divided by the number of months (including the month for which the deduction is computed) remaining in the period. Such amortizable basis at the end of the month shall be computed without regard to the amortization deduction for such month. The 84-month period shall begin on the first day of the first month of the second half of the taxable year in which the amortizable basis is acquired. (26 U.S.C. 194) (b) Limitations. '(1) Maximum dollar amount.--The aggregate amount of amortizable basis acquired during the taxable year which may be taken into account under subsection (a) for such taxable year shall not exceed $10,000 ($5,000 in the case of a separate return by a married individual (as defined in section 143)). "(2) Allocation of dollar limit.- "(A) Controlled group.--For purposes of applying the dollar limitation under paragraph (1) - "(i) all component members of a controlled group shall be treated as one taxpayer, and "(ii) the Secretary shall, under regulations prescribed by him, apportion such dollar limitation among the component members of such "For purposes of the preceding sentence, the term "(B) Partnerships.--In the case of a partnership, the dollar limitation contained in paragraph (1) shall apply with respect to the partnership and with respect to each partner. "(3) Section not to apply to trusts.--This section shall not apply to trusts. "(4) Estates.--The benefit of the deduction for amortization provided by this section shall be allowed to estates in the same manner as in the case of an individual. The allowable deduction shall be apportioned between the income beneficiary and the fiduciary under regulations prescribed by the Secretary. Any amount so apportioned to a beneficiary shall be taken into account for purposes of determining the amount allowable as a deduction under this section to such beneficiary. "(c) Definitions and Special Rule.--For purposes of this section- "(1) Qualified timber property.--The term 'qualified timber property' means a woodlot or other site located in the United States which will contain trees in significant commercial quantities and which is held by the taxpayer for the planting, cultivating, caring for, and cutting of trees for sale or use in the commercial production of timber products; "(2) Amortizable basis.--The term 'amortizable basis' means that portion of the basis of the qualified timber property attributable to reforestation expenditures. (3) Reforestation expenditures. "(A) In general. --The term 'reforestation expenditures' means direct costs incurred in connection with forestation or reforestation by planting or artificial or natural seeding, including costs- "(i) for the preparation of the site; depreciation of equipment such as tractors, "(B) Cost-sharing programs. --Reforestation expenditures shall not include any expenditures for which the taxpayer has been reimbursed under any governmental reforestation cost-sharing program unless the amounts reimbursed have been included in the gross income of the taxpayer. "(4) Basis allocation.--If the amount of the amortizable basis acquired during the taxable year of all qualified timber property with respect to which the taxpayer has made an election under subsection (a) exceeds the amount of the limitation under subsection (b)(1), the taxpayer shall allocate that portion of such amortizable basis with respect to which a deduction is allowable under subsection (a) to each such qualified timber property in such manner as the Secretary may by regulations prescribe. "(d) Life Tenant and Remainderman. --In the case of property held by one person for life with remainder to another person, the deduction under this section shall be computed as if the life tenant were the absolute owner of the property and shall be allowed to the life tenant." * * * * * (b) Adjusted Gross Income.--Section 62 of such Code (relating to definition of adjusted gross income) is amended by inserting after paragraph (14) the following: "(15) Reforestation Expenses.--The deduction allowed by section 194." (26 U.S.C. 62) (c) Conforming Amendments.- (1) (A) Paragraph (2) of section 1245(a) of such Code (relating to gain from dispositions of certain depreciable property) is amended by striking out "190, 193" each place it appears and inserting in lieu thereof "190, 193, 194". (B) Paragraphs (2) and (3) (D) of such section 1245(a) are each amended by striking out "or 193" and inserting "193, or 194". (C) Section 1245(b) of such Code (relating to exceptions and limitations) is amended by adding at the end thereof the following new paragraph: "(8) Timber property.--In determining, under subsection (a)(2), the recomputed basis of property with respect to which a deduction under section 194 was allowed for any taxable year, the taxpayer shall not take into account adjustments under section 194 to the extent such adjustments are attributable to the amortizable basis of the taxpayer acquired before the 10th taxable year preceding the taxable year in which gain with respect to the property is recognized." (26 U.S.Č. 1245) (d) Effective Date.--The amendments made by this section shall apply with respect to additions to capital account made after December 31, 1979. (26 U.S.C. 194 (note)) Sec. 302. INVESTMENT CREDIT. (a) General Rule.--Paragraph (1) of section 48(a) of the Internal Revenue Code of 1954 (relating to definition of section 38 property) is amended- (1) by striking out the period at the end of subparagraph (E) and inserting or"; (2) by inserting after subparagraph (E) the following new subparagraph: "(F) in the case of qualified timber property (within the meaning of section 194 (c)(1)), that' portion of the basis of such property constituting the amortizable basis acquired during the taxable year (other than that portion of such amortizable basis attributable to property which otherwise qualifies as section 38 property) and taken into account under section 194 (after the application of section 194(b)(1))."; and (3) by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to property described in subparagraph (F) and, for purposes of this subpart, the useful life of such property shall be treated as its normal growing period." (26 U.S.C. 48, 38) (b) Effective Date.--The amendments made by this section shall apply with respect to additions to capital account made after December 31, 1979. (26 U.S.C. 48 (note)) * * * * NOTE.--For more detailed coverage of tax provisions (a) There is established in the Treasury of the United States a trust fund, to be known as the Reforestation Trust Fund (hereinafter in this section referred to as the "Trust Fund"), consisting of such amounts as are transferred to the Trust Fund under subsection (b)(1) and any interest earned on investment of amounts in the Trust Fund under subsection (c) (2). (16 U.S.C. 1606a.) (b) (1) Subject to the limitation in paragraph (2), the Secretary of the Treasury shall transfer to the Trust Fund an amount equal to the sum of the tariffs received in the Treasury after September 30, 1979, and before October 1, 1985, under subparts A and B of part 1 of schedule 2 of the |