[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1674 Introduced in Senate (IS)]

  2d Session
                                S. 1674

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


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                   IN THE SENATE OF THE UNITED STATES

                             April 16, 1996

Mr. Grassley (for himself, Mr. Pressler, and Mr. Baucus) introduced the 
 following bill; which was read twice and referred to the Committee on 
                                Finance

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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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