I 

114TH CONGRESS 

2D SESSION H. R. 6343 

To amend the Internal Revenue Code of 1986 to encourage the sale of 

locally and regionally produced agricultural products in underserved communities. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2016 

Mr. VEASEY (for himself and Ms. NORTON) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Agriculture, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to encourage 

the sale of locally and regionally produced agricultural 

products in underserved communities. 

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 ‘‘Farmers Markets for 

5 Food Deserts Act of 2016’’. 


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1 SEC. 2. AGRICULTURAL PRODUCT SALES IN UNDERSERVED 

2 COMMUNITIES. 

3 (a) IN GENERAL.—Part III of subchapter B of chap4 ter 1 of the Internal Revenue Code of 1986 is amended 

5 by inserting before section 140 the following new section: 

6 ‘‘SEC. 139G. AGRICULTURAL PRODUCT SALES IN UNDER7 SERVED COMMUNITIES. 

8 ‘‘(a) IN GENERAL.—Gross income does not include 

9 amounts received by the taxpayer which are derived from 

10 qualified agricultural food product sales. 

11 ‘‘(b) QUALIFIED AGRICULTURAL FOOD PRODUCT

12 SALES.—For purposes of this section, the term ‘qualified 

13 agricultural food product sale’ means the sale of locally 

14 and regionally produced agricultural products (as such 

15 term is used in section 6 of the Farmer-to-Consumer Di16 rect Marketing Act of 1976 (7 U.S.C. 3005), as in effect 

17 on the date of the enactment of this section) by the tax18 payer to members of the general public at a fixed location 

19 (other than a retail store) located in a community de20 scribed in subsection (e)(1) of such section, as in effect 

21 on such date of enactment.’’. 

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

23 for part III of subchapter B of chapter 1 of such Code 

24 is amended by inserting before the item relating to section 

25 140: 

‘‘Sec. 139G. Agricultural product sales in underserved communities.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2016. 

4 SEC. 3. CLARIFICATION OF USE OF GRANT FUNDS UNDER 

5 FARMERS’ MARKET AND LOCAL FOOD PRO6 MOTION PROGRAM. 

7 Section 6(f) of the Farmer-to-Consumer Direct Mar8 keting Act of 1976 (7 U.S.C. 3005(f)) is amended— 

9 (1) in the subsection heading, by striking 

10 ‘‘FUNDS REQUIREMENTS FOR’’ and inserting ‘‘USE

11 OF FUNDS BY’’; 

12 (2) in paragraph (1), in the paragraph heading, 

13 by inserting ‘‘REQUIREMENT’’ after ‘‘FUNDS’’; and 

14 (3) by adding at the end the following new 

15 paragraph: 

16 ‘‘(3) FARMERS’ MARKET PERMIT FEES.—An eli17 gible entity may use a grant or other assistance pro18 vided under this section for purposes of paying any 

19 fees associated with obtaining a permit to sell locally 

20 and regionally produced agricultural products at a 

21 farmers’ market located in an area described in sub22 section (e)(1).’’. 

Æ 


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