A Democratic bill with no cosponsors
Last activity — Read twice and referred to the Committee on Finance.
In committee
Introduced and handed to a committee in the chamber it started in.
The committee holds it, and most bills are never heard from again. A hearing or a committee vote would be news; silence is the usual outcome, and it kills the bill without anyone voting against it.
Its path through Congress
- Introduced
- In Committee
What this bill would do
This bill, titled the "Farm Disaster Tax Cut Act," aims to amend the Internal Revenue Code of 1986. The primary purpose is to exclude crop insurance indemnity payments from gross income. These payments are made pursuant to the Federal Crop Insurance Act. The new provision would establish section 139M within the tax code. This change applies to payments for losses occurring after August 5, 2024.
Yes· 3 of 6
- Scored +7
Would farmers be better off under this?
The bill specifically assists farmers by preventing their disaster-related insurance payments from being taxed.
- Scored +6
Would business owners be better off under this?
Farm owners benefit directly from the exclusion of insurance indemnity payments from their taxable gross income.
- Scored +5
Does this cut taxes for small businesses?
The bill excludes crop insurance indemnity payments from gross income, providing tax relief for farm-based businesses.
The opposite
- Scored -2
Does this reduce what the federal government spends?
Excluding these payments from gross income reduces federal tax revenue.
Who it would affect, and how
Potential Positive Impacts for People
- Tax Relief for Farmers: Gross income will not include crop insurance indemnity payments made under the Federal Crop Insurance Act. This means these specific payments would not be counted as taxable income. (Section 2(a))
Potential Negative Impacts for People
- Limited Duration of Benefits: The exclusion of these payments from gross income will not apply to any payments for losses that occur after December 31, 2028. (Section 2(a))
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Demographic And Interest Groups
- Would farmers be better off under this? — The bill specifically assists farmers by preventing their disaster-related insurance payments from being taxed. Would business owners be better off under this? — Farm owners benefit directly from the exclusion of insurance indemnity payments from their taxable gross income. Would people in rural areas be better off under this? — The tax relief for farmers provides indirect economic support to rural areas.
- Economy And Finance
- Does this make it easier to run a small business? — The bill provides direct financial relief to farmers by making insurance payments non-taxable. Does this cut taxes for small businesses? — The bill excludes crop insurance indemnity payments from gross income, providing tax relief for farm-based businesses. Does this reduce what the federal government spends? — Excluding these payments from gross income reduces federal tax revenue.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — By reducing the tax burden on insurance payouts, the bill supports the financial stability of rural farming communities.
- 5/12/2026
- Read twice and referred to the Committee on Finance.
- Introduced in Senate