Bill > HR6836

This bill, titled the Beginning Farmer Tax Incentive Act, amends the Internal Revenue Code of 1986 to provide tax relief for beginning farmers by excluding certain income and gains related to farmland use from their gross income. Specifically, it allows for 40% of the gain from the sale or exchange of qualifying farmland held for over a year to be excluded from gross income when sold to a beginning farmer, with an annual limit on the total excluded gain. Additionally, income from leasing qualifying farmland to a beginning farmer for up to 10 years is also excluded, with a yearly limit of $25,000. Qualifying farmland is defined as property used for farming purposes that has been owned and materially participated in by the taxpayer or their family for at least five years within the preceding eight years. A "beginning farmer" is broadly defined to include individuals who have farmed for a limited number of years, are approved for certain farm loans, possess substantial farming knowledge and operate new agricultural ventures, or are closely related to the seller. The bill also includes provisions for recapturing the tax benefit if the farmland ceases to be used for farming within five years of the sale or lease, with the recaptured amount decreasing over that period. Finally, the Secretary of the Treasury is required to submit annual reports to Congress detailing the costs, benefits, and statistical information related to these tax exclusions.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/6836/all-info