[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4587 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4587

 To amend the Internal Revenue Code of 1986 to provide that the dollar 
 limitation on the deduction for family-owned business interests does 
             not apply to interests in farming businesses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 16, 1998

Mr. Bob Schaffer of Colorado (for himself, Mr. Radanovich, Mr. Norwood, 
Mr. Hall of Texas, Mr. McIntosh, Mr. Tauzin, Mr. Boucher, Mr. Bass, Mr. 
Christensen, Mr. Ryun, Mr. Horn, Mr. Nethercutt, Mr. Smith of Michigan, 
   Mr. Baker, Mr. Bartlett of Maryland, Mr. Istook, Mrs. Cubin, Mr. 
    Hostettler, Mr. McInnis, Mr. Skeen, Mr. Redmond, Mr. Kolbe, Mr. 
   Hinojosa, Mr. Moran of Kansas, Mr. Knollenberg, Mr. Sanders, Mr. 
    McHugh, Mr. Crapo, Mr. Blunt, Mr. Solomon, Mr. Inglis of South 
 Carolina, Mr. Forbes, Mr. Wicker, Mr. Mascara, Mr. Pappas, Mr. Stump, 
 Mr. Cooksey, Mr. Paul, Mr. Lucas of Oklahoma, Mr. Boehlert, Mr. Wolf, 
 Mr. Cannon, Mr. Burr of North Carolina, Mr. English of Pennsylvania, 
 Mr. Latham, and Mr. Barcia) 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 provide that the dollar 
 limitation on the deduction for family-owned business interests does 
             not apply to interests in farming businesses.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Farm Preservation Act''.

SEC. 2. DOLLAR LIMITATION ON ESTATE TAX DEDUCTION FOR FAMILY-OWNED 
              BUSINESS INTERESTS NOT TO APPLY TO INTERESTS IN FARMING 
              BUSINESSES.

    (a) In General.--Subsection (a) of section 2057 of the Internal 
Revenue Code of 1986 (relating to family-owned business interests), as 
amended by the Tax Technical Corrections Act of 1998, is amended by 
adding at the end the following new paragraph:
            ``(4) Deduction limitation not to apply to interests in 
        farming businesses.--
                    ``(A) In general.--Paragraph (2) shall not apply to 
                qualified family-owned farming business interests.
                    ``(B) Qualified family-owned farming business 
                interests.--For purposes of subparagraph (A), the term 
                `qualified family-owned farming business interest' 
                means any qualified family-owned business interest if--
                            ``(i) in the case of an interest referred 
                        to in subsection (e)(1)(A), the trade or 
                        business referred to therein is a farming 
                        business, and
                            ``(ii) in the case of an interest referred 
                        to in subsection (e)(1)(B), all trades and 
                        business carried on by the entity referred to 
                        therein are farming businesses.
                    ``(C) Farming business.--For purposes of 
                subparagraph (B), the term `farming business' has the 
                meaning given to such term by section 263A(e)(4).''
    (b) Period During Which Recapture Tax Applies Reduced to 3 Years in 
Case of Interests in Farming Businesses.--Paragraph (1) of section 
2057(f) of such Code, as so amended, is amended by inserting ``(3 years 
in the case of qualified family-owned farming business interests)'' 
after ``10 years''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.
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