Title: Agriculture Students Encourage, Acknowledge, Reward, Nurture Act
Policy area: Taxation

Summary:
Agriculture Students EARN Act or the Agriculture Students Encourage, Acknowledge, Reward, Nurture Act
This bill amends the Internal Revenue Code to exclude from the gross income of a student farmer 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 farmer.
A student farmer is an individual who is under 19 years of age and is enrolled in: (1) a program established by the National FFA Organization; (2) a 4-H Club or other program established by 4-H; or (3) a student agriculture program that is under the direction or guidance of an agricultural educator, advisor, or club leader.
To qualify for the exclusion, the production and sale or exchange of the property must be supervised by one of the specified agriculture programs. The sale or exchange must also occur during qualified public entertainment or convention and trade show activities.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 671 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                 S. 671

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 farmer, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2017

 Mr. Moran (for himself and Mrs. Ernst) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 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 farmer, 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 ``Agriculture Students EARN Act'' or 
the ``Agriculture Students Encourage, Acknowledge, Reward, Nurture 
Act''.

SEC. 2. EXCLUSION OF CERTAIN GAIN BY STUDENT FARMERS 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 
139F the following new section:

``SEC. 139G. GAIN FROM PROPERTY PRODUCED OR RAISED BY A STUDENT FARMER.

    ``(a) In General.--In the case of a student farmer, 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 farmer.--The term `student farmer' means an 
        individual who has not attained age 19 and who is enrolled in--
                    ``(A) 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 farmer (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 farmer 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 139F the 
following new item:

``Sec. 139G. Gain from property produced or raised by a student 
                            farmer.''.
    (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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