[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4644 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 4644

  To permit farmers the option of declaring the taxable year in which 
 production flexibility contract payments and crop insurance payments 
                     are included in gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 25, 1998

Mr. Smith of Michigan introduced the following bill; which was referred 
                   to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To permit farmers the option of declaring the taxable year in which 
 production flexibility contract payments and crop insurance payments 
                     are included in gross income.

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

SECTION 1. PRODUCTION FLEXIBILITY CONTRACT PAYMENTS.

    Notwithstanding the option under section 112(d)(3) of the Federal 
Agriculture Improvement and Reform Act of 1996, the payment for fiscal 
year 1999 under a production flexibility contract under subtitle B of 
title I of such Act shall be includible in gross income for purposes of 
the Internal Revenue Code of 1986 for the taxpayer's taxable year 
ending during 1999 or, at the election of the taxpayer, for the 
taxpayer's taxable year ending during 1998.

SEC. 2. EXPANSION OF CROP INSURANCE PAYMENTS ELIGIBLE FOR DEFERRAL.

    (a) In General.--The second sentence of subsection (d) of section 
451 of the Internal Revenue Code of 1986 is amended by striking ``or 
title'' and inserting ``, title'' and by inserting after ``1988,'' the 
following: ``or the Federal Crop Insurance Act,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to payments received on, before, or after the date of the 
enactment of this Act.
                                 <all>