Facilitating Farmers' Access to Resources and Machinery Act

Bill: 114-hr-5335
Sponsor: full_name: Rep. Young, David [R-IA-3]
Introduced: 2016-05-25
Policy area: Taxation
Subjects: Agricultural equipment and machinery

Farmland

Income tax exclusion

Inflation and prices

Securities
Latest action: action_date: 2016-05-25
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-05-25
action_desc: Introduced in House
text: <p><b>Facilitating Farmers' Access to Resources and Machinery Act</b></p> <p>This bill amends the Internal Revenue Code, with respect to private activity bond financing for first-time farmers, to: (1) increase from $450,000 to $520,000 (adjusted annually for inflation) the amount of bond proceeds that may be used by a first-time farmer to acquire land for farming purposes, (2) repeal the separate dollar limitation on the use of bond proceeds for used farm equipment, and (3) modify the definition of &quot;substantial farmland&quot; to determine farm size by reference to the average (instead of median) size of a farm in the county in which the farm is located. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5335 IN THE HOUSE OF REPRESENTATIVES May 25, 2016 Mr. Young of Iowa (for himself, Mr. Loebsack , Mrs. Noem , Mr. King of Iowa , Mr. Peterson , Mr. Emmer of Minnesota , Mr. Blum , Mr. LaHood , and Mr. Smith of Nebraska ) 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 expand certain exceptions to the private activity bond rules for first-time farmers, and for other purposes.

1. Short title This Act may be cited as the Facilitating Farmers’ Access to Resources and Machinery Act . 2. Expansion of certain exceptions to the private activity bond rules for first-time farmers (a) Increase in dollar limitation (1) In general Section 147(c)(2)(A) of the Internal Revenue Code of 1986 is amended by striking $450,000 and inserting $520,000 . (2) Repeal of separate lower dollar limitation on used farm equipment Section 147(c)(2) of such Code is amended by striking subparagraph (F) and by redesignating subparagraphs (G) and (H) as subparagraphs (F) and (G), respectively. (3) Qualified small issue bond limitation conformed to increased dollar limitation Section 144(a)(11)(A) of such Code is amended by striking $250,000 and inserting $520,000 . (4) Inflation adjustment (A) In general Section 147(c)(2)(G) of such Code, as redesignated by paragraph (2), is amended— (i) by striking after 2008, the dollar amount in subparagraph (A) shall be increased and inserting after 2016, the dollar amounts in subparagraph (A) and section 144(a)(11)(A) shall each be increased , and (ii) by striking 2007 in clause (ii) and inserting 2015 . (B) Cross-reference Section 144(a)(11) of such Code is amended by adding at the end the following new subparagraph: (D) Inflation adjustment For inflation adjustment of dollar amount contained in subparagraph (A), see section 147(c)(2)(G). . (b) Substantial farmland determined on basis of average rather than median farm size Section 147(c)(2)(E) of such Code is amended by striking median and inserting average . (c) Effective date The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.