I 

116TH CONGRESS 

1ST SESSION H. R. 1770 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

certain amounts realized on the disposition of property raised or produced 

by a student agriculturist, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 14, 2019 

Mr. MCCAUL (for himself, Mr. PETERSON, and Mr. CUELLAR) 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 amounts realized on the disposition of property raised or produced by a student 

agriculturist, and for other purposes. 

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 ‘‘Student Agriculture 

5 Protection Act of 2019’’. 


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1 SEC. 2. EXCLUSION OF CERTAIN GAIN BY STUDENT AGRI2 CULTURISTS FROM GROSS INCOME. 

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 after section 139G the following new section: 

6 ‘‘SEC. 139H. GAIN FROM PROPERTY PRODUCED OR RAISED 

7 BY A STUDENT AGRICULTURIST. 

8 ‘‘(a) IN GENERAL.—In the case of a student agri9 culturist, gross income shall not include so much of the 

10 gain from qualified dispositions during the taxable year 

11 as does not exceed $5,000. 

12 ‘‘(b) DEFINITIONS.—For purposes of this section— 

13 ‘‘(1) STUDENT AGRICULTURIST.—The term 

14 ‘student agriculturist’ means an individual who has 

15 not attained age 22 and who is enrolled in— 

16 ‘‘(A) an FFA chapter or a program estab17 lished by the National FFA Organization, 

18 ‘‘(B) a 4–H Club or other program estab19 lished by 4–H, or 

20 ‘‘(C) any student agriculture program 

21 similar in nature to a club or program de22 scribed in subparagraph (A) or (B) which is 

23 under the direction or guidance of an agricul24 tural educator, advisor, or club leader. 

25 ‘‘(2) QUALIFIED DISPOSITION.— 


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1 ‘‘(A) IN GENERAL.—The term ‘qualified 

2 disposition’ means a sale or exchange of quali3 fied property by or on behalf of a student agri4 culturist (determined as of the date of the sale 

5 or exchange) which occurs— 

6 ‘‘(i) during an activity of a type de7 scribed in paragraph (2)(B) or (3)(B) of 

8 section 513(d), or 

9 ‘‘(ii) under the supervision of a pro10 gram described in subparagraph (A), (B), 

11 or (C) of paragraph (1). 

12 ‘‘(B) QUALIFIED PROPERTY.—For pur13 poses of subparagraph (A), the term ‘qualified 

14 property’ means personal property, including 

15 livestock, crops, and agricultural mechanics or 

16 shop projects, produced or raised— 

17 ‘‘(i) by the student agriculturist by or 

18 on behalf of whom the sale or exchange is 

19 made, and 

20 ‘‘(ii) under the supervision of a pro21 gram described in subparagraph (A), (B), 

22 or (C) of paragraph (1).’’. 

23 (b) CONFORMING AMENDMENT.—The table of sec24 tions for part III of subchapter B of chapter 1 of the In25 ternal Revenue Code of 1986 is amended by inserting 


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1 after the item relating to section 139G the following new 

2 item: 

‘‘Sec. 139H. Gain from property produced or raised by a student agriculturist.’’. 

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

4 this section shall apply to taxable years beginning after 

5 the date of the enactment of this Act. 

Æ 


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