[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1895 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 1895

 To amend the Internal Revenue Code of 1986 to allow certain cash rent 
   farm landlords to deduct soil and water conservation expenditures.


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                   IN THE SENATE OF THE UNITED STATES

                             June 20, 1996

 Mr. Grassley 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 allow certain cash rent 
   farm landlords to deduct soil and water conservation expenditures.

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

SECTION 1. DEDUCTION FOR SOIL AND WATER CONSERVATION EXPENDITURES 
              EXTENDED TO CERTAIN CASH RENT LANDLORDS.

    (a) In General.--Subsection (c) of section 175 of the Internal 
Revenue Code of 1986 (relating to soil and water conservation 
expenditures) is amended by adding at the end the following new 
paragraph:
            ``(4) Cash rent landlords.--A taxpayer shall be treated as 
        engaged in the business of farming with respect to any land 
        used in farming if such taxpayer rents such land (regardless of 
        the basis for the rental payment) to a member of the taxpayer's 
        family (as defined in section 2032A(e)(2)).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to amounts paid or incurred after December 31, 1996, in taxable years 
ending after such date.
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