To amend the Internal Revenue Code of 1986 to expand the rules for involuntary conversions of livestock sold on account of weather-related conditions.

January 29, 2003

Mr. MCINNIS (for himself, Mr. POMEROY, Mr. HAYWORTH, Mr. HULSHOF, Mr. HERGER, Mrs. CUBIN, Mr. HEFLEY, Mr. BEAUPREZ, Mrs. MUSGRAVE, Ms. DEGETTE, Mr. TANCREDO, and Mr. PETERSON of Pennsylvania) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to expand the rules for involuntary conversions of livestock sold on account of weather-related conditions.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Rancher HELP (Help Extend Livestock Proceeds) Act of 2003'.

SEC. 2. SPECIAL RULES FOR LIVESTOCK SOLD ON ACCOUNT OF WEATHER-RELATED CONDITIONS.

(a) RULES FOR REPLACEMENT OF INVOLUNTARILY CONVERTED LIVESTOCK- Subsection (e) of section 1033 of the Internal Revenue Code of 1986 (relating to involuntary conversions) is amended--

(1) by striking `CONDITIONS- For purposes' and inserting `CONDITIONS-

`(1) IN GENERAL- For purposes', and

(2) by adding at the end the following new paragraph:

`(2) EXTENSION OF REPLACEMENT PERIOD-

`(A) IN GENERAL- In the case of drought, flood, or other weather-related conditions described in paragraph (1) which result in the area being designated as eligible for assistance by the Federal Government, subsection (a)(2)(B) shall be applied with respect to any converted property by substituting `4 years' for `2 years'.

`(B) FURTHER EXTENSION BY SECRETARY- The Secretary may extend on a regional basis the period for replacement under this section (after the application of subparagraph (A)) for such additional time as the Secretary determines appropriate if the weather-related conditions which resulted in such application continue for more than 3 years.'.

(b) INCOME INCLUSION RULES- Section 451(e) of such Code (relating to special rule for proceeds from livestock sold on account of drought, flood, or other weather-related conditions) is amended by adding at the end the following new paragraph:

`(3) SPECIAL ELECTION RULES- If section 1033(e)(2) applies to a sale or exchange of livestock described in paragraph (1), the election under paragraph (1) shall be deemed valid if made during the replacement period described in such section.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to any taxable year with respect to which the due date (without regard to extensions) for the return is after December 31, 2002.

END