‘‘SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG 
AS USE AS FARMLAND CONTINUES. 
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, the value of the gross 
estate shall not include the adjusted value of qualified 
farmland included in the estate. 
‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This 
section shall apply to an estate if— 
‘‘(1) the decedent was (at the date of the dece-
dent’s death) a citizen or resident of the United 
States, 
‘‘(2) with respect to each of 3 or more of the 
5 consecutive taxable years ending with the dece-
dent’s last taxable year, the decedent’s gross income 
from the trade or business of farming exceeds 50 
percent of the decedent’s gross income, and 
‘‘(3) during the 8-year period ending on the 
date of the decedent’s death there have been periods 
aggregating 5 years or more during which— 
‘‘(A) the qualified farmland was owned by 
the decedent or a member of the decedent’s 
family, and 
‘‘(B) there was material participation 
(within the meaning of section 2032A(e)(6)) by 
the decedent or a member of the decedent’s 
family in the operation of such farmland. 
VerDate Nov 24 2008 
17:05 Jan 10, 2009
Jkt 079200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\H173.IH
H173
jlentini on PROD1PC65 with BILLS
Rules similar to the rules of paragraphs (4) and (5) 
of section 2032A(b) shall apply for purposes of sub-
paragraph (B). 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFIED FARMLAND.—The term ‘quali-
fied farmland’ means any real property— 
‘‘(A) which is located in the United States, 
‘‘(B) which is used as a farm for farming 
purposes (within the meaning of section 
2032A(e)), and 
‘‘(C) which was acquired from or passed 
from the decedent to a qualified heir of the de-
cedent and which, on the date of the decedent’s 
death, was being so used by the decedent or a 
member of the decedent’s family. 
‘‘(2) ADJUSTED
VALUE.—The term ‘adjusted 
value’ means the value of farmland for purposes of 
this chapter (determined without regard to this sec-
tion), reduced by the amount deductible under para-
graph (3) or (4) of section 2053(a). 
‘‘(3) OTHER TERMS.—Any other term used in 
this section which is also used in section 2032A shall 
have the same meaning given such term by section 
2032A. 
VerDate Nov 24 2008 
17:05 Jan 10, 2009
Jkt 079200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H173.IH
H173
jlentini on PROD1PC65 with BILLS
‘‘(d) TAX TREATMENT OF DISPOSITIONS AND FAIL-
URES TO USE FOR FARMING PURPOSES.— 
‘‘(1) IMPOSITION OF RECAPTURE TAX.—If, at 
any time after the decedent’s death and before the 
death of the qualified heir— 
‘‘(A) the qualified heir disposes of any in-
terest in qualified farmland (other than by a 
disposition to a member of his family), or 
‘‘(B) the qualified heir ceases to use the 
real property which was acquired (or passed) 
from the decedent as a farm for farming pur-
poses, then, there is hereby imposed a recapture 
tax. 
‘‘(2) AMOUNT
OF
RECAPTURE
TAX, ETC.— 
Rules similar to the rules of section 2032A(c) with 
respect to the additional estate tax shall apply for 
purposes of this subsection with respect to the re-
capture tax. 
‘‘(e) APPLICATION OF OTHER RULES.—Rules similar 
to the rules of subsections (e), (f), (g), (h), and (i) of sec-
tion 2032A shall apply for purposes of this section.’’ 
(b) CLERICAL AMENDMENT.—The table of sections 
for part III of subchapter A of chapter 11 of such Code 
is amended by inserting after the item relating to section 
2033 the following new item: 
VerDate Nov 24 2008 
17:05 Jan 10, 2009
Jkt 079200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H173.IH
H173
jlentini on PROD1PC65 with BILLS
‘‘Sec. 2033A. Exclusion of certain farmland so long as use as farmland con-
tinues.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
the date of the enactment of this Act. 
Æ 
VerDate Nov 24 2008 
17:05 Jan 10, 2009
Jkt 079200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6301
E:\BILLS\H173.IH
H173
jlentini on PROD1PC65 with BILLS