I 

110TH CONGRESS 

1ST SESSION H. R. 1929 

To amend the Internal Revenue Code of 1986 to exempt certain farmland 

from the estate tax. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 18, 2007 

Mr. SALAZAR (for himself, Mr. MAHONEY of Florida, and Mr. HILL) 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 exempt 

certain farmland from the estate tax. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Save the Family Farm 

5 and Ranch Act of 2007’’. 

6 SEC. 2. EXCLUSION FROM GROSS ESTATE OF CERTAIN 

7 FARMLAND SO LONG AS FARMLAND USE 

8 CONTINUES. 

9 (a) IN GENERAL.—Part III of subchapter A of chap10 ter 11 of the Internal Revenue Code of 1986 (relating to 


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1 gross estate) is amended by inserting after section 2033 

2 the following new section: 

3 ‘‘SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG 

4 AS USE AS FARMLAND CONTINUES. 

5 ‘‘(a) IN GENERAL.—In the case of an estate of a de6 cedent to which this section applies, the value of the gross 

7 estate shall not include the adjusted value of qualified 

8 farmland included in the estate. 

9 ‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This 

10 section shall apply to an estate if— 

11 ‘‘(1) the decedent was (at the date of the dece12 dent’s death) a citizen or resident of the United 

13 States, 

14 ‘‘(2) with respect to each of 3 or more of the 

15 5 consecutive taxable years ending with the dece16 dent’s last taxable year, the decedent’s gross income 

17 from the trade or business of farming exceeds 50 

18 percent of the decedent’s gross income, and 

19 ‘‘(3) during the 8-year period ending on the 

20 date of the decedent’s death there have been periods 

21 aggregating 5 years or more during which— 

22 ‘‘(A) the qualified farmland was owned by 

23 the decedent or a member of the decedent’s 

24 family, and 


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1 ‘‘(B) there was material participation 

2 (within the meaning of section 2032A(e)(6)) by 

3 the decedent or a member of the decedent’s 

4 family in the operation of such farmland. 

5 Rules similar to the rules of paragraphs (4) and (5) 

6 of section 2032A(b) shall apply for purposes of sub7 paragraph (B). 

8 ‘‘(c) DEFINITIONS.—For purposes of this section— 

9 ‘‘(1) QUALIFIED FARMLAND.—The term ‘quali10 fied farmland’ means any real property— 

11 ‘‘(A) which is located in the United States, 

12 ‘‘(B) which is used as a farm for farming 

13 purposes (within the meaning of section 

14 2032A(e)), and 

15 ‘‘(C) which was acquired from or passed 

16 from the decedent to a qualified heir of the de17 cedent and which, on the date of the decedent’s 

18 death, was being so used by the decedent or a 

19 member of the decedent’s family. 

20 ‘‘(2) ADJUSTED VALUE.—The term ‘adjusted 

21 value’ means the value of farmland for purposes of 

22 this chapter (determined without regard to this sec23 tion), reduced by the amount deductible under para24 graph (3) or (4) of section 2053(a). 


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1 ‘‘(3) OTHER TERMS.—Any other term used in 

2 this section which is also used in section 2032A shall 

3 have the same meaning given such term by section 

4 2032A. 

5 ‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL6 URES TO USE FOR FARMING PURPOSES.— 

7 ‘‘(1) IMPOSITION OF RECAPTURE TAX.—If, at 

8 any time after the decedent’s death and before the 

9 death of the qualified heir— 

10 ‘‘(A) the qualified heir disposes of any in11 terest in qualified farmland (other than by a 

12 disposition to a member of his family), or 

13 ‘‘(B) the qualified heir ceases to use the 

14 real property which was acquired (or passed) 

15 from the decedent as a farm for farming pur16 poses, then, there is hereby imposed a recapture 

17 tax. 

18 ‘‘(2) AMOUNT OF RECAPTURE TAX, ETC.— 

19 Rules similar to the rules of section 2032A(c) with 

20 respect to the additional estate tax shall apply for 

21 purposes of this subsection with respect to the re22 capture tax. 

23 ‘‘(e) APPLICATION OF OTHER RULES.—Rules similar 

24 to the rules of subsections (e), (f), (g), (h), and (i) of sec25 tion 2032A shall apply for purposes of this section.’’ 


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1 (b) CLERICAL AMENDMENT.—The table of sections 

2 for part III of subchapter A of chapter 11 of such Code 

3 is amended by inserting after the item relating to section 

4 2033 the following new item: 

‘‘Sec. 2033A. Exclusion of certain farmland so long as use as farmland continues.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to estates of decedents dying after 

7 the date of the enactment of this Act. 

Æ 


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