Student Agriculture Protection Act of 2021
Bill: H.R.3420 | Sponsor: Rep. McCaul, Michael T. (R-TX)
Policy area: Taxation

Summary:
Student Agriculture Protection Act of 2021
This bill modifies the requirements for calculating taxable income to exclude from the gross income of a student agriculturist up to $5,000 of the gain from the sale or exchange of personal property (including livestock, crops, and agricultural mechanics or shop products) produced or raised by the student agriculturist.
A student agriculturist is an individual who is under 22 years of age and is enrolled in (1) an FFA (Future Farmers of America) chapter or a program established by the National FFA Organization; (2) a 4H Club or other program established by 4H; or (3) a student agriculture program that is under the direction or guidance of an agricultural educator, advisor, or club leader.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Agriculture Protection Act 
of 2021''.

SEC. 2. EXCLUSION OF CERTAIN GAIN BY STUDENT AGRICULTURISTS FROM GROSS 
              INCOME.

    (a) In General.--Part III of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by inserting after section 
139H the following new section:

``SEC. 139I. GAIN FROM PROPERTY PRODUCED OR RAISED BY A STUDENT 
              AGRICULTURIST.

    ``(a) In General.--In the case of a student agriculturist, gross 
income shall not include so much of the gain from qualified 
dispositions during the taxable year as does not exceed $5,000.
    ``(b) Definitions.--For purposes of this section--
            ``(1) Student agriculturist.--The term `student 
        agriculturist' means an individual who has not attained age 22 
        and who is enrolled in--
                    ``(A) an FFA chapter or a program established by 
                the National FFA Organization,
                    ``(B) a 4-H Club or other program established by 4-
                H, or
                    ``(C) any student agriculture program similar in 
                nature to a club or program described in subparagraph 
                (A) or (B) which is under the direction or guidance of 
                an agricultural educator, advisor, or club leader.
            ``(2) Qualified disposition.--
                    ``(A) In general.--The term `qualified disposition' 
                means a sale or exchange of qualified property by or on 
                behalf of a student agriculturist (determined as of the 
                date of the sale or exchange) which occurs--
                            ``(i) during an activity of a type 
                        described in paragraph (2)(B) or (3)(B) of 
                        section 513(d), or
                            ``(ii) under the supervision of a program 
                        described in subparagraph (A), (B), or (C) of 
                        paragraph (1).
                    ``(B) Qualified property.--For purposes of 
                subparagraph (A), the term `qualified property' means 
                personal property, including livestock, crops, and 
                agricultural mechanics or shop projects, produced or 
                raised--
                            ``(i) by the student agriculturist by or on 
                        behalf of whom the sale or exchange is made, 
                        and
                            ``(ii) under the supervision of a program 
                        described in subparagraph (A), (B), or (C) of 
                        paragraph (1).''.
    (b) Conforming Amendment.--The table of sections for part III of 
subchapter B of chapter 1 of the Internal Revenue Code of 1986 is 
amended by inserting after the item relating to section 139H the 
following new item:

``Sec. 139I. Gain from property produced or raised by a student 
                            agriculturist.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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