To amend the Internal Revenue Code of 1986 to impose a tax on the acquisition of United States agricultural interests by disqualified persons.
Impact
If enacted, HB 3996 would lead to stricter regulations concerning foreign ownership of agricultural land in the United States. The measure categorizes 'disqualified persons' broadly, encompassing not only foreign individuals but also entities associated with nations that present a risk to national security. Consequently, U.S. farmers and agricultural businesses may see reduced competition for land purchases from foreign entities, while simultaneously addressing concerns about foreign influence in a vital sector of the economy.
Summary
House Bill 3996 aims to amend the Internal Revenue Code of 1986 to impose a significant tax on the acquisition of U.S. agricultural interests by so-called 'disqualified persons.' The bill proposes a tax rate of 60% on the amount paid for such acquisitions, targeting entities and individuals from nations deemed a concern to U.S. national security, which includes countries like China, Russia, and Iran. The intention behind this bill is to enhance oversight and control over foreign investments in critical agricultural sectors, thus safeguarding domestic food production and security.
Contention
The introduction of such a tax has sparked debate among lawmakers and agricultural stakeholders. Supporters argue that it is a necessary step to protect U.S. agricultural interests from foreign exploitation, thus promoting safety and sustainability within domestic food sources. Conversely, opponents contend that excessively stringent regulations on foreign investment could hinder agricultural development and limit beneficial international collaborations. There is also fear that it may create a hostile environment for foreign investments, impacting the overall economic climate in the agricultural sector.
To amend the Internal Revenue Code of 1986 to allow certain credits and deductions to be taken as a refundable tax credit by Puerto Rico businesses or residents, and to extend such credits and deductions to possessions of the United States.
To amend the Internal Revenue Code of 1986 to cover into the treasury of the Virgin Islands revenue from tax on fuel produced in the Virgin Islands and entered into the United States.