12 2 STA T . 1 504PUBLIC LA W 110 – 2 3 4 —M A Y 22 , 200 8‘ ‘ (8)TERMINAT I O N D ATE .—Forpu rpo se so fthi ssu b se c tio n, the ter m ‘termin a tion d ate ’ means, w ith respect to an y ta x payer, the l ast day of the taxpayer’s first taxable year be g inning after the date of the enactment of this paragraph and before the date that is 1 year after such date of enactment.’’. (c) EF FE C TI V E D ATE.—The amendments made by subsection (a) shall apply to dispositions in taxable years beginning after the date of the enactment of this A ct. SEC.153 13. MIN E RAL R OY AL T Y INCOME QU ALI F YIN G INCOME FOR TIM B ER REITS. (a) I N G ENERA L .— S ection 8 56 (c)( 2 ) is amended by stri k ing ‘‘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 in v estment trust and held, or once held, in connec - tion with the trade or business of producing timber by such real estate investment trust
’’. (b) TIM B ER R EAL E S TATE INVESTMENT TR U ST.—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 5 0 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. SEC. 1531 4 .MO D IFICATION OF TA X ABLE REIT SUBSIDIARY ASSET TEST FOR TIMBER REITS. (a) IN GENERAL.—Section 856(c)( 4 )( B )(ii) is amended by inserting ‘‘(in the case of a q uarter which closes on or before the termination date, 25 percent in the case of a timber real estate investment trust)’’ after ‘‘REIT subsidiaries’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after the date of the enact- ment of this Act. SEC. 15315. SAFE H ARBOR FOR TIMBER P ROPERTY. (a) IN GENERAL.—Section 85 7 (b)(6) (relating to income from prohibited transactions) is amended by adding at the end the fol- lowing new subparagraph: ‘‘(G) S P ECIAL RULES FOR SALES TO Q UALIFIED OR G ANI Z A- TIONS.— ‘‘(i) IN GENERAL.—In the case of the sale of a real estate asset (as defined in section 856(c)(5)(B)) to a qualified organi z ation (as defined in section 170(h)( 3 )) exclusively for conservation purposes (within the meaning of section 170(h)(1)( C )), subparagraph (D) shall be applied— ‘‘(I) by substituting ‘2 years’ for ‘4 years’ in clause (i), and 26USC85 6 note. 26 USC 856 note. 26 USC 856. 26 USC 856 note.
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