Bipartisian Tax Legislation Introduced To Help Forest Landowners Recover After Natural Disasters

Forest Landowners Association

WASHINGTON, DC -The Forest Landowners Association (FLA) applauds the introduction of bipartisan HR 4120, the “Disaster Reforestation Act,” sponsored by Rep. Terri Sewell (D-AL) and Buddy Carter (R-GA), which allows family and private timber growers to recover from the loss of timber destroyed by natural disasters and reforest their lands. 

Private forest owners include families and small timber companies that produce products like lumber. These landowners face immense financial burdens when needing to reforest their lands after a natural disaster, which is often compounded at tax time when private forest owners find their ability to claim a casualty loss for destroyed timber is limited, often to zero dollars. 

Reforestation is vital to the viability of the private forest owners not only to ensure a solid timber harvest down the road but there are environmental benefits as well. An often-unseen benefit of these forest owners is that while they are growing trees, they are also sequestering carbon – a big contributor to the slowing of climate change. 

“Congressional lawmakers are looking at the country’s 455 million acres of private forests as a major solution to achieving a lower carbon future, a significant contributor to clean air and water, and a way to protect wildlife,” said FLA CEO Scott Jones. “While these forests do provide all of these environmental benefits, we cannot keep counting on these forest landowners to maintain those forests when faced with the devastation of a natural disaster taking out their timber without the funds to help them recover. We need economically strong forest landowners, and the Disaster Reforestation Act is an important step in the right direction to keep these working forests healthy.” 

Reps. Sewell and Carter have shown that they understand how important forest landowners are to rural economies, strong domestic wood supply and as a natural climate solution. The introduction of this bill will provide for the equitable tax treatment of casualty loss of their timber crop when disaster strikes.

“America’s forest landowners have been waiting for this measure to be introduced and are appreciative of Representative Sewell and Carter’s efforts to get this important bill moving,” said CEO Jones. “The legislation will not only help timber owners recover from natural disasters but will stimulate rural economies, support our nation’s domestic timber supply, and provide environmental benefits to the nation.” 

From Georgia to California, the Pacific Northwest to the Gulf, this is an issue of national importance that deserves a federal solution, and Congress already has the answer, pass the bi-partisan Disaster Reforestation Act. FLA looks forward to continuing to work with Congress to advance this important legislation. 

In addition to FLA, more than 35 other forestry and conservation organizations support fixing the tax treatment of timber casualty losses.

Additional Support from National Organizations 

“We applaud Representatives Sewell and Carter for introducing the Disaster Reforestation Act, a bipartisan bill that will support forest health and resilience in the face of a changing climate. This bill provides support to forest owners following a disaster to help keep working forests working and continuing to provide clean air and water, wildlife habitat, and good-paying jobs in rural communities. We look forward to working with Representatives Sewell and Carter and their House colleagues to further advance opportunities for private working forests.” - The National Alliance of Forest Owners 

“There are more than 20 million families and individuals who own and care for the largest portion of U.S. forests, providing all Americans with wildlife habitat, clean air and water, and wood supplies. Unfortunately, family forest owners do not have access to affordable insurance like most farmers and are faced with significant economic loss after disasters like hurricanes and wildfires. We applaud Congresswoman Sewell and Congressman Carter for addressing these important issues for family forest owners with the introduction of the Disaster Reforestation Act.” - American Forest Foundation