119 S4502 IS: Farm Disaster Tax Cut Act U.S. Senate 2026-05-12 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II119th CONGRESS2d SessionS. 4502IN THE SENATE OF THE UNITED STATESMay 12, 2026Mr. Ossoff introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income.

1.

Short title

This Act may be cited as the Farm Disaster Tax Cut Act.

2.

Crop insurance indemnity payments excluded from gross income

(a)

In general

Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139L the following new section:

139M.

Crop insurance indemnity payments

(a)

In general

Gross income shall not include any crop insurance indemnity payment made pursuant to the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).(b)

Termination

This section shall not apply to any payment for losses which occur after December 31, 2028.

.(b)

Clerical amendment

The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139L the following new item:Sec. 139M. Crop insurance indemnity payments..(c)

Effective date

The amendments made by this section shall apply to payments for losses which occur after August 5, 2024.