MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.

SEC. 15313. MINERAL ROYALTY INCOME QUALIFYING INCOME FOR TIMBER REITS.(a) In General.—Section 856(c)(2) is amended by striking “and” at the end of subparagraph (G), by inserting “and” at the end of subparagraph (H), and by adding after subparagraph (H) the following new subparagraph:“(I) mineral royalty income earned in the first taxable year beginning after the date of the enactment of this subparagraph from real property owned by a timber real estate investment trust and held, or once held, in connection with the trade or business of producing timber by such real estate investment trust;”.(b) Timber Real Estate Investment Trust.—Section 856(c)(5), as amended by this Act, is amended by adding after subparagraph (H) the following new subparagraph:“(I) Timber real estate investment trust.—The term ‘timber real estate investment trust’ means a real estate investment trust in which more than 50 percent in value of its total assets consists of real property held in connection with the trade or business of producing timber.”.(c) Effective Date.—The amendments by this section shall apply to taxable years beginning after the date of the enactment of this Act.