I 
118TH CONGRESS 
1ST SESSION H. R. 3996 
To amend the Internal Revenue Code of 1986 to impose a tax on the 
acquisition of United States agricultural interests by disqualified persons. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 9, 2023 
Ms. VAN DUYNE (for herself, Mr. BUCHANAN, Mr. CAREY, Mr. KUSTOFF, Ms. 
MALLIOTAKIS, and Mr. ARRINGTON) 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 impose 
a tax on the acquisition of United States agricultural 
interests by disqualified persons. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. IMPOSITION OF TAX ON THE ACQUISITION OF 
UNITED STATES AGRICULTURAL INTERESTS 
BY DISQUALIFIED PERSONS. 
(a) IN GENERAL.—Subtitle D of the Internal Rev-
enue Code of 1986 is amended by inserting after chapter 
50A the following new chapter: 
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‘‘CHAPTER 50B—ACQUISITION OF UNITED 
STATES 
AGRICULTURAL 
INTERESTS 
BY DISQUALIFIED PERSONS 
‘‘Sec. 5000E. Imposition of tax on acquisition of United States agricultural in-
terests by disqualified persons. 
‘‘SEC. 5000E. IMPOSITION OF TAX ON ACQUISITION OF 
UNITED STATES AGRICULTURAL INTERESTS 
BY DISQUALIFIED PERSONS. 
‘‘(a) IN GENERAL.—In the case of any acquisition of 
any United States agricultural interest by any disqualified 
person, there is hereby imposed on such person a tax equal 
to 60 percent of the amount paid for such interest. 
‘‘(b) DISQUALIFIED PERSON.—For purposes of this 
section— 
‘‘(1) IN GENERAL.—The term ‘disqualified per-
son’ means— 
‘‘(A) any citizen of a country of concern 
(other than a citizen, or lawful permanent resi-
dent, of the United States and other than an 
individual domiciled in Taiwan possessing a 
valid identification card or number issued by 
the government of Taiwan), 
‘‘(B) any entity domiciled in a country of 
concern (other than an entity domiciled in Tai-
wan), 
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‘‘(C) any country of concern and any polit-
ical subdivision, agency, or instrumentality 
thereof, and 
‘‘(D) except as provided in paragraph (3), 
any entity if persons described in subparagraph 
(A), (B), or (C) (in the aggregate) 10-percent 
control such entity. 
‘‘(2) COUNTRY OF CONCERN.—The term ‘coun-
try of concern’ means any country the government 
of which is engaged in a long-term pattern or seri-
ous instances of conduct significantly adverse to the 
national security of the United States or the security 
and safety of United States persons, including the 
People’s Republic of China, the Russian Federation, 
Iran, North Korea, Cuba, and the regime of Nicolas 
Maduro in Venezuela. 
‘‘(3) EXCEPTION
FOR
CERTAIN
PUBLICLY 
TRADED CORPORATIONS.— 
‘‘(A) IN GENERAL.—An entity shall not be 
treated as described in paragraph (1)(D) if— 
‘‘(i) such entity is a specified publicly 
traded corporation, or 
‘‘(ii) specified publicly traded corpora-
tions (in the aggregate) control such enti-
ty. 
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‘‘(B) SPECIFIED PUBLICLY TRADED COR-
PORATION.— 
‘‘(i) IN GENERAL.—The term ‘speci-
fied publicly traded corporation’ means any 
corporation if— 
‘‘(I) the stock of such corporation 
is regularly traded on an established 
securities 
market 
located 
in 
the 
United States, and 
‘‘(II) specified disqualified per-
sons do not (in the aggregate) control 
such corporation. 
‘‘(ii) SPECIFIED
DISQUALIFIED
PER-
SONS.—The term ‘specified disqualified 
persons’ means, with respect to any cor-
poration referred to in clause (i), any per-
son which— 
‘‘(I) is described in subparagraph 
(A), (B), or (C) of paragraph (1), and 
‘‘(II) has 10-percent control such 
entity. 
‘‘(c) PRORATED TAX ON ACQUISITIONS BY ENTITIES 
NOT MORE THAN 50 PERCENT CONTROLLED BY DIS-
QUALIFIED PERSONS.— 
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‘‘(1) IN GENERAL.—In the case of any disquali-
fied person described in subsection (b)(1)(D) with 
respect to which persons described in subparagraph 
(A), (B), or (C) of subsection (b)(1) do not (in the 
aggregate) control such disqualified person, sub-
section (a) shall be applied by substituting ‘the ap-
plicable percentage of the amount’ for ‘the amount’. 
‘‘(2) APPLICABLE PERCENTAGE.—For purposes 
of this section, the term ‘applicable percentage’ 
means, with respect to any disqualified person to 
which paragraph (1) applies, the highest percentage 
which could be substituted for ‘50 percent’ both 
places it appears in section 954(d)(3) without caus-
ing persons described in subparagraph (A), (B), or 
(C) of subsection (b)(1) (in the aggregate) to control 
(determined by taking into account such substi-
tution) such disqualified person. 
‘‘(d) CONTROL.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘control’ has the 
meaning given such term under section 954(d)(3), 
determined by treating the rules of section 958(a)(2) 
as applying to both foreign and domestic corpora-
tions, partnerships, trusts, and estates. 
‘‘(2) 10-PERCENT
CONTROL.—The term ‘10- 
percent control’ means control (as defined in para-
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