Beginning Farmer Tax Incentive Act

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [H.R. 6836 Introduced in House (IH)] <DOC> 119th CONGRESS 1st Session H. R. 6836 To amend the Internal Revenue Code of 1986 to exclude from gross income certain gains and other income related to use of farmland by beginning farmers. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES December 18, 2025 Mr. Alford introduced the following bill; which was referred to the Committee on Ways and Means _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude from gross income certain gains and other income related to use of farmland by beginning farmers. 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 ``Beginning Farmer Tax Incentive Act''. SEC. 2. CERTAIN GAINS AND OTHER INCOME RELATED TO USE OF FARMLAND BY BEGINNING FARMERS EXCLUDED FROM GROSS INCOME. (a) In General.--Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section: ``SEC. 139M. CERTAIN GAINS AND OTHER INCOME RELATED TO USE OF FARMLAND BY BEGINNING FARMERS. ``(a) Capital Gains.-- ``(1) In general.--Gross income shall not include 40 percent of the gain from the sale or exchange of qualifying farmland held for more than 1 year if such farmland is transferred to a beginning farmer in such sale or exchange. ``(2) Limitation.--The aggregate amount of gain excluded under paragraph (1) with respect to any taxpayer for any taxable year shall not exceed the excess (if any) of-- ``(A) $1,500,000, over ``(B) the aggregate amount of gain excluded under paragraph (1) with respect to such taxpayer for the 4 preceding taxable years. ``(b) Application to Leases and Crop-Share Arrangements.-- ``(1) In general.--Gross incom