12 2 STA T . 22 64PUBLIC LA W 11 0– 246 —J U NE 1 8, 2008 byinsert in g‘ ‘
en da ngered s p e c ies rec ov ery e x pendit u res ’ ’ be f ore t h e period .( b )LIM I TA TI ONS . —P aragraph ( 3 ) of section 175 (c) (re l ating to additional li m itations) is amended— (1) in the heading of subparagraph ( A ) , by inserting ‘‘O RE N D AN G ERED S P E C IES RECO V ER Y P L AN’’ after ‘‘CONSERVATION PLAN’’, and ( 2 ) in subparagraph (A)(i), by inserting ‘‘or the recovery plan approved pursuant to the E ndangered S pecies Act of 1 9 73’’ after ‘‘ D epartment of Agriculture’’. (c) E F FECTIVE DATE.— T he amendments made by this section shall apply to expenditures paid or incurred after December 31, 2 0 0 8 . SubpartB—Tim b e r P r ov i s io n s SEC.153 11. T E MPORA R Y RE DU CT I O N IN RATE O F TA X ON Q UA L IFIED TIM B ER G AIN OF CORPORATIONS. (a) I N G ENERAL.—Section 1201 (relating to alternative tax for corporations) is amended by redesignating subsection (b) as sub - section (c) and by adding after subsection (a) the follo w ing new subsection
‘‘(b) SPECIAL R ATE FOR QU ALIFIED TIM B ER GAINS.— ‘‘(1) IN GENERAL.—If, for any taxable year ending after the date of the enactment of the F ood, C onservation, 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 q ualified 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 sub- sections (a) and (b) of section 6 31 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 ta k en into account. ‘‘(3) COMPUTATION FOR TA X ABLE YEARS IN WH ICH 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, and Ap p licab ili ty.26USC175no t e . 26 USC 175.
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