[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3251 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3251

To amend the Internal Revenue Code of 1986 to expand the applicability 
                  of the first-time farmer exception.


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                    IN THE HOUSE OF REPRESENTATIVES

                             April 16, 1996

Mr. Lightfoot (for himself, Mr. Leach, Mr. Nussle, Mr. Ganske, and Mr. 
   Latham) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to expand the applicability 
                  of the first-time farmer exception.

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

SECTION 1. EXPANSION OF FIRST-TIME FARMER EXCEPTION.

    (a) Acquisition From Related Person Allowed.--Section 147(c)(2) of 
the Internal Revenue Code of 1986 (relating to exception for first-time 
farmers) is amended by adding at the end the following new 
subparagraph:
                    ``(G) Acquisition from related person.--For 
                purposes of this paragraph and section 144(a), the 
                acquisition by a first-time farmer of land or personal 
                property from a related person (within the meaning of 
                section 144(a)(3)) shall not be treated as an 
                acquisition from a related person.''
    (b) Substantial Farmland Definition Modified.--Clause (i) of 
section 147(c)(2)(E) of the Internal Revenue Code of 1986 (defining 
substantial farmland) is amended by striking ``15 percent of the 
median'' and inserting ``30 percent of the average''.
    (c) Effective Date.--The amendments made by this section shall 
apply to bonds issued after the date of the enactment of this Act.
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