TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN OF CORPORATIONS.

SEC. 15311. TEMPORARY REDUCTION IN RATE OF TAX ON QUALIFIED TIMBER GAIN OF CORPORATIONS.(a) In General.—Section 1201 (relating to alternative tax for corporations) is amended by redesignating subsection (b) as subsection (c) and by adding after subsection (a) the following new subsection:“(b) Special Rate for Qualified Timber Gains.—“(1) In general.—If, for any taxable year ending after the date of the enactment of the Food, Conservation, and Energy Act of 2008 and beginning on or before the date which is 1 year after such date, a corporation has both a net capital gain and qualified timber gain—“(A) subsection (a) shall apply to such corporation for the taxable year without regard to whether the applicable tax rate exceeds 35 percent, and“(B) the tax computed under subsection (a)(2) shall be equal to the sum of—“(i) 15 percent of the least of—“(I) qualified timber gain,“(II) net capital gain, or“(III) taxable income, plus“(ii) 35 percent of the excess (if any) of taxable income over the sum of the amounts for which a tax was determined under subsection (a)(1) and clause (i).“(2) Qualified timber gain.—For purposes of this section, the term ‘qualified timber gain’ means, with respect to any taxpayer for any taxable year, the excess (if any) of—“(A) the sum of the taxpayer’s gains described in subsections (a) and (b) of section 631 for such year, over“(B) the sum of the taxpayer’s losses described in such subsections for such year.For purposes of subparagraphs (A) and (B), only timber held more than 15 years shall be taken into account.“(3) Computation for taxable years in which rate first applies or ends.—In the case of any taxable year which includes either of the dates set forth in paragraph (1), the qualified timber gain for such year shall not exceed the qualified timber gain properly taken into account for—“(A) in the case of the taxable year including the date of the enactment of the Food, Conservation, and Energy Act of 2008, the portion of the year after such date, and122 STAT. 2265“(B) in the case of the taxable year including the date which is 1 year after such date of enactment, the portion of the year on or before such later date.”.(b) Minimum Tax.—Subsection (b) of section 55 is amended by adding at the end the following paragraph:“(4) Maximum rate of tax on qualified timber gain of corporations.—In the case of any taxable year to which section 1201(b) applies, the amount determined under clause (i) of subparagraph (B) shall not exceed the sum of—“(A) 20 percent of so much of the taxable excess (if any) as exceeds the qualified timber gain (or, if less, the net capital gain), plus“(B) 15 percent of the taxable excess in excess of the amount on which a tax is determined under subparagraph (A).Any term used in this paragraph which is also used in section 1201 shall have the meaning given such term by such section, except to the extent such term is subject to adjustment under this part.”.(c) Conforming Amendment.—Section 857(b)(3)(A)(ii) is amended by striking “rate” and inserting “rates”.(d) Effective Date.—The amendments made by this section shall apply to taxable years ending after the date of enactment.