I 

111TH CONGRESS 

1ST SESSION H. R. 173 

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

from the estate tax. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. SALAZAR (for himself and Ms. MARKEY of Colorado) 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. EXCLUSION FROM GROSS ESTATE OF CERTAIN 

4 FARMLAND SO LONG AS FARMLAND USE 

5 CONTINUES. 

6 (a) IN GENERAL.—Part III of subchapter A of chap7 ter 11 of the Internal Revenue Code of 1986 (relating to 

8 gross estate) is amended by inserting after section 2033 

9 the following new section: 


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

2 AS USE AS FARMLAND CONTINUES. 

3 ‘‘(a) IN GENERAL.—In the case of an estate of a de4 cedent to which this section applies, the value of the gross 

5 estate shall not include the adjusted value of qualified 

6 farmland included in the estate. 

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

8 section shall apply to an estate if— 

9 ‘‘(1) the decedent was (at the date of the dece10 dent’s death) a citizen or resident of the United 

11 States, 

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

13 5 consecutive taxable years ending with the dece14 dent’s last taxable year, the decedent’s gross income 

15 from the trade or business of farming exceeds 50 

16 percent of the decedent’s gross income, and 

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

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

19 aggregating 5 years or more during which— 

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

21 the decedent or a member of the decedent’s 

22 family, and 

23 ‘‘(B) there was material participation 

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

25 the decedent or a member of the decedent’s 

26 family in the operation of such farmland. 


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

2 of section 2032A(b) shall apply for purposes of sub3 paragraph (B). 

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

5 ‘‘(1) QUALIFIED FARMLAND.—The term ‘quali6 fied farmland’ means any real property— 

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

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

9 purposes (within the meaning of section 

10 2032A(e)), and 

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

12 from the decedent to a qualified heir of the de13 cedent and which, on the date of the decedent’s 

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

15 member of the decedent’s family. 

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

17 value’ means the value of farmland for purposes of 

18 this chapter (determined without regard to this sec19 tion), reduced by the amount deductible under para20 graph (3) or (4) of section 2053(a). 

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

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

23 have the same meaning given such term by section 

24 2032A. 


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1 ‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL2 URES TO USE FOR FARMING PURPOSES.— 

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

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

5 death of the qualified heir— 

6 ‘‘(A) the qualified heir disposes of any in7 terest in qualified farmland (other than by a 

8 disposition to a member of his family), or 

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

10 real property which was acquired (or passed) 

11 from the decedent as a farm for farming pur12 poses, then, there is hereby imposed a recapture 

13 tax. 

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

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

16 respect to the additional estate tax shall apply for 

17 purposes of this subsection with respect to the re18 capture tax. 

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

20 to the rules of subsections (e), (f), (g), (h), and (i) of sec21 tion 2032A shall apply for purposes of this section.’’ 

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

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

24 is amended by inserting after the item relating to section 

25 2033 the following new item: 


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

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

2 this section shall apply to estates of decedents dying after 

3 the date of the enactment of this Act. 

Æ 


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