II 110th CONGRESS 1st Session S. 1155 IN THE SENATE OF THE UNITED STATES April 18, 2007 Mr. Dorgan (for himself, Mr. Brownback, Ms. Landrieu, Mr. Allard, Mr. Harkin, Mrs. Murray, Mr. Roberts, Mr. Nelson of Nebraska, Mr. Salazar, Mr. Hagel, Mr. Thune, and Mr. Levin) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To treat payments under the Conservation Reserve Program as rentals from real estate.

1.

Short title

This Act may be cited as the Conservation Reserve Program Tax Fairness Act of 2007.

2.

Treatment of Conservation Reserve Program payments as rentals from real estate

(a)

Internal Revenue Code

Section 1402(a)(1) of the Internal Revenue Code of 1986 (defining net earnings from self-employment) is amended by inserting and including payments under section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) after crop shares. (b)

Social Security Act

Section 211(a)(1) of the Social Security Act is amended by inserting and including payments under section 1233(2) of the Food Security Act of 1985 (16 U.S.C. 3833(2)) after crop shares. (c)

Effective date

The amendments made by this section shall apply to payments made before, on, or after the date of the enactment of this Act. (d)

Maintenance of transfers to trust funds

There are hereby appropriated to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, and the Federal Hospital Insurance Trust Fund established under the Social Security Act amounts equal to the reduction in revenues to the Treasury by reason of the enactment of this Act. Amounts appropriated by the preceding sentence shall be transferred from the general fund at such times and in such manner as to replicate to the extent possible the transfers which would have occurred to such Trust Funds had this Act not been enacted.