Page:United States Statutes at Large Volume 94 Part 2.djvu/713

 PUBLIC LAW 96-451—OCT. 14, 1980

94 STAT. 1991

amortizable basis of the taxpayer acquired before the 10th taxable year preceding the taxable year in which gain with respect to the property is recognized.". (2) The table of sections for part VI of subchapter B of chapter 1 of such Code is amended by inserting at the end thereof the following new item: "Sec. 194. Amortization of reforestation expenditures.". (d) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 194 note.

apply with respect to additions to capital account made after December 31, 1979. SEC. 302. INVESTMENT CREDIT. (a) GENERAL RULE.—Paragraph (1) of section 48(a) of the Internal Revenue Code of 1954 (relating to definition of section 38 property) is amended— (1) by striking out the period at the end of subparagraph (E) and inserting ", or"; (2) by inserting after subparagraph (E) the following new subparagraph: "(F) in the case of qualified timber property (within the meaning of section 194(c)(1)), that portion of the basis of such property constituting the amortizable basis acquired during the taxable year (other than that portion of such amortizable basis attributable to property which otherwise qualifies as section 38 property) and taken into account under section 194 (after the application of section 194(b)(1))."; and (3) by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to property described in subparagraph (F) and, for purposes of this subpart, the useful life of such property shall be treated as its normal growing period.". (b) EFFECTIVE DATE,—The amendments made by this section shall apply with respect to additions to capital account made after December 31, 1979. SEC. 303. REFORESTATION TRUST FUND. (a) There is established in the Treasury of the United States a trust fund, to be known as the Reforestation Trust Fund (hereinafter in this section referred to as the "Trust Fund"), consisting of such amounts as are transferred to the Trust Fund under subsection (b)(1) and any interest earned on investment of amounts in the Trust Fund under subsection (c)(2). (b)(1) Subject to the limitation in paragraph (2), the Secretary of the Treasury shall transfer to the Trust Fund an amount equal to the sum of the tariffs received in the Treasury after September 30, 1979, and before October 1, 1985, under subparts A and B of part 1 of schedule 2 of the Tariff Schedules of the United States (19 U.S.C. 1202) and under part 3 of such schedule. (2) The Secretary shall not transfer more than $30,000,000 to the Trust Fund for any fiscal year. (3) The amounts required to be transferred to the Trust Fund under paragraph (1) shall be transferred at least quarterly from the general fund of the Treasury to the Trust Fund on the basis of estimates made by the Secretary of the Treasury. Proper adjustment shall be made in the amounts subsequently transferred to the extent prior estimates were in excess of or less than the amounts required to be transferred. (c)(1) It shall be the duty of the Secretary of the Treasury to hold the Trust Fund, and (after consultation with the Secretary of Agriculture) to report to the Congress each year on the financial condition

26 USC 48, 38.

Ante, p. 1989.

26 USC 48 note. 16 USC 1606a.

Report to Congress,

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