Save America’s Family Forests Act of 2026
- Bill Number
- S. 4442
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-04-29: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-05-13T15:52:33Z
AI-Generated Summary
Save America's Family Forests Act of 2026 (S. 4442)
Purpose
This bill amends the Internal Revenue Code to expand tax deductions for reforestation costs—expenses to replant forests after harvesting or damage. It aims to support family-owned forests by allowing larger immediate write-offs (expensing), especially after natural disasters, rather than spreading deductions over time.
Key Provisions
- Increased Standard Expensing Limits (Section 2):
- Raises the per-property expensing cap from $10,000 to $30,000 (or from $5,000 to $15,000 for married taxpayers filing separately).
- Adds annual inflation adjustments starting in 2027, based on cost-of-living changes (rounded to nearest $100).
- New Deduction for Disaster-Related Reforestation (Section 3, new IRC §194B):
- Allows immediate deduction up to $500,000 per property ($250,000 for married filing separately) or $1 million aggregate across properties ($500,000 for married filing separately).
- Applies to costs for replanting uncut timber (standing trees not yet harvested) damaged in a qualified natural disaster (Presidentially declared under the Stafford Act) within 5 years.
- Excludes government-reimbursed costs (unless included in income) or those already deducted under existing rules.
- Election can be made on original or amended tax returns; rules for groups of companies, partnerships, and trusts.
- Inflation adjustments apply after 2026.
- Recapture Rule: If property is sold or disposed within 10 years, deducted amount is recaptured as ordinary income (like depreciation recapture under IRC §1245), prorated for partial sales; exceptions for casualties, condemnations, takings, or death.
- Effective Date: Applies to costs paid/incurred in tax years beginning after December 31, 2026.
Significant Changes to Existing Law
- Modifies IRC §194: Triples base expensing limits and introduces inflation protection (previously fixed since 1986).
- Adds entirely new IRC §194B: First targeted immediate expensing for disaster recovery reforestation (existing §194 allows amortization over 84 months after small expensing).
Potential Impacts
- Taxpayers: Faster tax relief for reforestation, reducing upfront costs and encouraging replanting, especially after wildfires/hurricanes.
- Government Agencies: IRS must issue regulations for elections, allocations, and recapture; potential short-term federal revenue loss from larger deductions.
- Environment/Citizens: Boosts forest recovery on private lands, aiding carbon sequestration, wildlife, and timber supply.
- No direct international effects.
Main Stakeholders
- Primary Beneficiaries: Owners of family forests/timber properties (e.g., small landowners, farmers), especially in disaster-prone areas like the Southeast or West.
- Others Affected: Partnerships, S corporations, trusts/estates with timber; controlled corporate groups; IRS (administration/enforcement).
Notable Legal, Constitutional, or Political Implications
- Legal: Relies on Treasury/IRS regulations for implementation; integrates with existing tax rules (e.g., §1245 recapture, controlled groups under §1563).
- Constitutional: Standard tax legislation (Congress's power under Article I); no apparent free speech, due process, or equal protection issues.
- Political: Bipartisan (introduced by Sens. Cassidy and Warnock); incentivizes private disaster recovery amid rising climate events, but could face debate over tax expenditures vs. direct aid.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Warnock, Raphael G. [D-GA]
Recent Actions
- 2026-04-29: Read twice and referred to the Committee on Finance.
- 2026-04-29: Introduced in Senate
Bill Versions
- Save America’s Family Forests Act of 2026 — issued 2026-04-29 — PDF (9 pages)