Mitch McConnell (R-KY)
A bill to amend the Internal Revenue Code of 1986 to exclude from gross income capital gains from the sale of certain farmland property which are reinvested in individual retirement plans.
A Republican bill with 4 Republican cosponsors · See all 4 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 proposes an amendment to the Internal Revenue Code of 1986 regarding the sale of certain farmland. It would allow taxpayers to exclude capital gains from their gross income if the property is sold to a qualified farmer and the gains are reinvested into an individual retirement plan within 60 days. To qualify, the land must have been used as a farm for substantially all of the 10 years leading up to the sale. The bill also establishes specific taxes for when the land stops being used for farming or is sold within 10 years. These rules include requirements for written agreements and specific definitions for qualified property and farmers.
Yes· 3 of 9
- Scored +7
Does this cut the tax on profits from selling investments?
The bill allows taxpayers to exclude capital gains from the sale of qualified farmland if reinvested into retirement plans.
- Scored +6
Would high-income households be better off under this?
The bill provides a specific tax exclusion for significant capital gains from farmland sales.
- Scored +6
Would business owners be better off under this?
Qualified farmers benefit from an easier pathway to acquire farmland through these tax-advantaged transactions.
The opposite
No question was scored the opposite.
Who it would affect, and how
Potential Positive Impacts for People
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Tax Exclusion on Farmland Sales: Taxpayers can exclude gains from their gross income when they sell qualified farmland to a qualified farmer, provided they reinvest those gains into an individual retirement plan within a 60-day period. (Section 139J(a))
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Increased Retirement Contribution Limits: The bill increases the limitations for contributions to individual retirement plans to allow for the reinvestment of these specific capital gains. (Section 1(b))
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Protection for Involuntary Conversions: No additional tax is imposed if the loss of property is due to an involuntary conversion. (Section 139J(e)(3)(A))
Potential Negative Impacts for People
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Additional Tax on Land Use Changes: If a qualified farmer sells the land or stops using it for farming purposes within 10 years, they are subject to an additional tax consisting of the excluded amount multiplied by specific tax rates plus interest. (Section 139J(c)(1) and (c)(2))
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Personal Liability for Taxpayers: The qualified farmer is held personally liable for the additional tax imposed if the land use changes or the property is disposed of within the 10-year window. (Section 139J(c)(3))
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Irrevocable Election: Once a taxpayer makes the election to exclude the gain, that decision cannot be changed. (Section 139J(d)(1))
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 business owners be better off under this? — Qualified farmers benefit from an easier pathway to acquire farmland through these tax-advantaged transactions. Would high-income households be better off under this? — The bill provides a specific tax exclusion for significant capital gains from farmland sales. Would farmers be better off under this? — The bill provides incentives for the transfer of property to active farmers, supporting the continuation of farming operations. Would people over 65 be better off under this? — The bill helps taxpayers bolster their retirement accounts through the sale of farmland. Would people in rural areas be better off under this? — By facilitating land transfers to active farmers, the bill helps maintain the agricultural character of rural communities.
- Economy And Finance
- Does this cut the tax on profits from selling investments? — The bill allows taxpayers to exclude capital gains from the sale of qualified farmland if reinvested into retirement plans. Is this likely to grow the economy? — The bill encourages the transfer of farmland to active farmers by providing tax incentives for reinvesting sale gains into retirement.
- Environment Energy And Infrastructure
- Does this invest in rural communities? — The bill incentivizes the sale of land to qualified farmers, which helps maintain active agricultural use in rural areas.
- Social Issues And Justice
- Does this strengthen Social Security? — The bill facilitates the movement of farmland assets into individual retirement plans, aiding long-term financial security.
- 7/15/2025
- 1 Cosponsor added.
- 6/3/2025
- 3 Cosponsors added.
- 3/11/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
Ted BuddRepublican · North Carolina
Katie BrittRepublican · Alabama
James JusticeRepublican · West Virginia
John KennedyRepublican · Louisiana