WASHINGTON –U.S. Senators John Boozman (R-AR) and Sherrod Brown (D-OH) introduced legislation to ensure that timber companies are treated more fairly under the tax code.
The senators re-introduced the Timber Revitalization and Economic Enhancement (TREE) Act, which amends the IRS Code to restore parity and facilitate competitiveness for timber companies organized as C corporations. These businesses have faced a different tax rate than alternatively structured companies with timber holdings.
Because of the long production period in the timber industry, capital from these companies is tied up for years until timber can be harvested. If passed, the TREE Act would help restore fairness to the tax code that will ultimately provide corporate timber holdings with greater certainty and incentives to make investments and expand operations.
“Any time we can change our tax code to simplify it and help businesses grow and create jobs, that is a win. The TREE Act would especially help Arkansas given our state’s rich timber supply and robust forestry industry. I am proud to introduce this bill and look forward to championing in in the Senate,” Boozman said.
Boozman and Brown were joined by Senators Tom Cotton (R-AR), Thad Cochran (R-MS), Johnny Isakson (R-GA) and Roger Wicker (R-MS) as cosponsors of the legislation.