Reforestation Tax Act of 1991

Reforestation Tax Act of 1991 - Amends the Internal Revenue Code to provide corporations a partial inflation adjustment for the deduction from gross income for qualified timber gain. Allows such deduction in computing adjusted gross income.

Provides for applying passive loss limitations to timber activities.

Increases the amount allowable as a deduction for amortization of reforestation expenditures and provides an inflation adjustment after calendar year 1992. Applies such inflation adjustment to the reforestation credit.