1. Short title This Act may be cited as the Forest Recovery Act . 2. Casualty losses of uncut timber (a) In general Section 165(b) of the Internal Revenue Code of 1986 is amended— (1) by striking For purposes of subsection (a) and inserting the following: (1) In general For purposes of subsection (a) ; and (2) by adding at the end the following new paragraph: (2) Special rule for casualty loss of uncut timber (A) In general In the case of the loss of any uncut timber from fire, storm, or other casualty, or from theft, the basis for determining the amount of the deduction for such loss (as otherwise determined under paragraph (1)) shall not be less than the excess of— (i) the fair market value of such uncut timber determined immediately before such loss was sustained, over (ii) the salvage value of such timber. (B) Exclusion of timber not held for sale Subparagraph (A) shall not apply to any timber unless such timber is held for the purpose of being cut and sold. (C) Inclusion of pre-merchantable timber For purposes of this paragraph, the term uncut timber shall not fail to include pre-merchantable timber. (D) Reforestation requirement Subparagraph (A) shall not apply unless the uncut timber subject to the loss is reforested (with hardwoods, softwoods, or any combination thereof) by planting, seeding, or appropriate site preparation, not later than the close of the 5-year period beginning on the date of such loss. . (b) Exception To repeal of personal casualty losses Section 165(h)(5)(A) is amended by inserting or a loss of uncut timber (within the meaning of subsection (b)(2)) to which subsection (b)(2)(A) applies after Federally declared disaster (as defined in subsection (i)(5)) . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.