Student Agriculture Protection Act of 2021

Bill: 117-hr-3420
Sponsor: full_name: Rep. McCaul, Michael T. [R-TX-10]
Introduced: 2021-05-20
Policy area: Taxation
Subjects: Agricultural education

Income tax exclusion

Livestock
Latest action: action_date: 2021-05-20
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2021-05-20
action_desc: Introduced in House
text: <p><b>Student Agriculture Protection Act of 2021</b></p> <p>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. </p> <p>A <em>student agriculturist</em> 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.</p>

tv_txt: I 117th CONGRESS 1st Session H. R. 3420 IN THE HOUSE OF REPRESENTATIVES May 20, 2021 Mr. McCaul (for himself, Mr. Cuellar , Mr. Crawford , Mrs. Axne , Mr. Mann , and Mr. David Scott of Georgia ) 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 exclude from gross income certain amounts realized on the disposition of property raised or produced by a student agriculturist, and for other purposes.

1. Short title This Act may be cited as the Student Agriculture Protection Act of 2021 . 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: 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.