Bill > S838

This bill amends the Internal Revenue Code to create a new tax provision that excludes from gross income the interest received by qualified lenders on certain loans secured by rural or agricultural real property. Specifically, the bill defines "qualified lenders" as banks, savings associations, insurance companies, and certain financial entities owned by bank or insurance holding companies. A "qualified real estate loan" is defined as a loan secured by rural or agricultural real estate, forestland, or a single-family residence in a rural area, with certain limitations such as a maximum principal amount of $750,000 for single-family homes. The bill explicitly prohibits loans to "foreign adversary entities," which are defined to include countries like China, Cuba, Iran, North Korea, Russia, and Venezuela. Loans must be made after the bill's enactment, though refinancing of existing loans is permitted. The bill also requires the Treasury Secretary to submit a report to Congress within five years analyzing the impact of this provision, including whether it has reduced interest rates on qualifying loans. The tax exclusion would apply to taxable years ending after the bill's enactment, potentially providing a financial incentive for lending in rural and agricultural areas while restricting loans to certain foreign entities.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/838/all-info