Reforestation Tax Act of 1995

Reforestation Tax Act of 1995 - Amends the Internal Revenue Code to provide taxpayers a partial inflation adjustment for the deduction from gross income for qualified timber gain. Allows such deduction in computing adjusted gross income.

Excludes from conditions of the material participation rules, for purposes of the passive loss limitations, closely held timber activity if the aggregate hours devoted to management of the activity for any year is generally fewer than 100 hours.

Increases the amount allowable as a deduction for amortization of reforestation expenditures and provides an inflation adjustment after calendar year 1995. Applies such inflation adjustment to the reforestation credit. Shortens the amortization period from 84 to 60 months.