Bill Summary
The Farmers' Access to Resources and Machinery Act is a bill that aims to amend the Internal Revenue Code of 1986 in order to expand certain exceptions to the private activity bond rules for first-time farmers. This bill increases the dollar limitation for these bonds from $450,000 to $524,200, eliminates a separate lower dollar limitation for used farm equipment, and adjusts the qualified small issue bond limitation to match the increased dollar limitation. It also changes the determination of substantial farmland from median to average farm size. These amendments will apply to bonds issued after the date of the enactment of this Act.
Possible Impacts
1. The increased dollar limitation for first-time farmers could provide financial relief and resources for individuals looking to start their own farming business. This could potentially encourage more people to pursue a career in agriculture and boost the industry.
2. The repeal of the separate lower dollar limitation on used farm equipment could make it easier for first-time farmers to afford necessary equipment and machinery, leading to increased productivity and profitability.
3. The inflation adjustment provision could ensure that the dollar amounts specified in the legislation remain relevant and effective over time, preventing potential financial burdens on first-time farmers in the future.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5007 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 5007
To amend the Internal Revenue Code of 1986 to expand certain exceptions
to the private activity bond rules for first-time farmers, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 8, 2019
Ms. Finkenauer (for herself, Mr. Crawford, Mrs. Axne, Mr. Loebsack, Mr.
Watkins, and Mr. Fortenberry) 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 expand certain exceptions
to the private activity bond rules for first-time farmers, and for
other purposes.
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 ``Farmers' Access to Resources and
Machinery Act''.
SEC. 2. EXPANSION OF CERTAIN EXCEPTIONS TO THE PRIVATE ACTIVITY BOND
RULES FOR FIRST-TIME FARMERS.
(a) Increase in Dollar Limitation.--
(1) In general.--Section 147(c)(2)(A) of the Internal
Revenue Code of 1986 is amended by striking ``$450,000'' and
inserting ``$524,200''.
(2) Repeal of separate lower dollar limitation on used farm
equipment.--Section 147(c)(2) of such Code is amended by
striking subparagraph (F) and by redesignating subparagraphs
(G) and (H) as subparagraphs (F) and (G), respectively.
(3) Qualified small issue bond limitation conformed to
increased dollar limitation.--Section 144(a)(11)(A) of such
Code is amended by striking ``$250,000'' and inserting
``$524,200''.
(4) Inflation adjustment.--
(A) In general.--Section 147(c)(2)(G) of such Code,
as redesignated by paragraph (2), is amended--
(i) by striking ``after 2008, the dollar
amount in subparagraph (A) shall be increased''
and inserting ``after 2020, the dollar amounts
in subparagraph (A) and section 144(a)(11)(A)
shall each be increased''; and
(ii) by striking ``2007'' in clause (ii)
and inserting ``2019''.
(B) Cross-reference.--Section 144(a)(11) of such
Code is amended by adding at the end the following new
subparagraph:
``(D) Inflation adjustment.--For inflation
adjustment of dollar amount contained in subparagraph
(A), see section 147(c)(2)(G).''.
(b) Substantial Farmland Determined on Basis of Average Rather Than
Median Farm Size.--Section 147(c)(2)(E) of such Code is amended by
striking ``median'' and inserting ``average''.
(c) Effective Date.--The amendments made by this section shall
apply to bonds issued after the date of the enactment of this Act.
<all>