Us Congress 2025-2026 Regular Session

Us Congress House Bill HB1822 Compare Versions

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Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 1822
5	5	To amend the Internal Revenue Code of 1986 to exclude from gross income
6	6	interest received on certain loans secured by rural or agricultural real
7	7	property.
8	8	IN THE HOUSE OF REPRESENTATIVES
9	9	MARCH4, 2025
10	10	Mr. F
11	11	EENSTRA(for himself, Mr. DAVISof North Carolina, and Mr. MORAN)
12	12	introduced the following bill; which was referred to the Committee on
13	13	Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to exclude
16	16	from gross income interest received on certain loans se-
17	17	cured by rural or agricultural real property.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Access to Credit for 4
22	22	our Rural Economy Act of 2025’’ or the ‘‘ACRE Act of 5
23	23	2025’’. 6
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26	26	•HR 1822 IH
27	27	SEC. 2. EXCLUSION OF INTEREST ON LOANS SECURED BY 1
28	28	RURAL OR AGRICULTURAL REAL PROPERTY. 2
29	29	(a) I
30	30	NGENERAL.—Part III of subchapter B of chap-3
31	31	ter 1 of the Internal Revenue Code of 1986 is amended 4
32	32	by inserting after section 139I the following new section: 5
33	33	‘‘SEC. 139J. INTEREST ON LOANS SECURED BY RURAL OR 6
34	34	AGRICULTURAL REAL PROPERTY. 7
35	35	‘‘(a) I
36	36	NGENERAL.—Gross income shall not include 8
37	37	interest received by a qualified lender on any qualified real 9
38	38	estate loan. 10
39	39	‘‘(b) Q
40	40	UALIFIEDLENDER.—For purposes of this sec-11
41	41	tion, the term ‘qualified lender’ means— 12
42	42	‘‘(1) any bank or savings association the depos-13
43	43	its of which are insured under the Federal Deposit 14
44	44	Insurance Act (12 U.S.C. 1811 et seq.), 15
45	45	‘‘(2) any State- or Federally-regulated insur-16
46	46	ance company, 17
47	47	‘‘(3) any entity wholly owned, directly or indi-18
48	48	rectly, by a company that is treated as a bank hold-19
49	49	ing company for purposes of section 8 of the Inter-20
50	50	national Banking Act of 1978 (12 U.S.C. 3106) if— 21
51	51	‘‘(A) such entity is organized, incor-22
52	52	porated, or established under the laws of the 23
53	53	United States or any State of the United 24
54	54	States, and 25
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58	58	‘‘(B) the principal place of business of 1
59	59	such entity is in the United States (including 2
60	60	any territory of the United States), 3
61	61	‘‘(4) any entity wholly owned, directly or indi-4
62	62	rectly, by a company that is considered an insurance 5
63	63	holding company under the laws of any State if such 6
64	64	entity satisfies the requirements described in sub-7
65	65	paragraphs (A) and (B) of paragraph (3), and 8
66	66	‘‘(5) with respect to interest received on a quali-9
67	67	fied real estate loan secured by real estate described 10
68	68	in subsection (c)(3)(A), any federally chartered in-11
69	69	strumentality of the United States established under 12
70	70	section 8.1(a) of the Farm Credit Act of 1971 (12 13
71	71	U.S.C. 2279aa–1(a)). 14
72	72	‘‘(c) Q
73	73	UALIFIEDREALESTATELOAN.—For purposes 15
74	74	of this section— 16
75	75	‘‘(1) I
76	76	N GENERAL.—The term ‘qualified real es-17
77	77	tate loan’ means any loan— 18
78	78	‘‘(A) secured by— 19
79	79	‘‘(i) rural or agricultural real estate or 20
80	80	forestland, or 21
81	81	‘‘(ii) a leasehold mortgage (with a sta-22
82	82	tus as a lien) on rural or agricultural real 23
83	83	estate, 24
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87	87	‘‘(B) which is made to a person other than 1
88	88	a foreign adversary entity, 2
89	89	‘‘(C) in the case of any loan with respect 3
90	90	to single family residence described in para-4
91	91	graph (3)(B)— 5
92	92	‘‘(i) the proceeds of which are used to 6
93	93	purchase or improve such residence, and 7
94	94	‘‘(ii) the principal of which (when 8
95	95	added to the principal of all other such 9
96	96	loans with respect to such residence) does 10
97	97	not (as of the time the interest income on 11
98	98	such loan is accrued) exceed $750,000, and 12
99	99	‘‘(D) made after the date of the enactment 13
100	100	of this section. 14
101	101	For purposes of the preceding sentence, the deter-15
102	102	mination of whether property securing such loan is 16
103	103	rural or agricultural real estate shall be made as of 17
104	104	the time the interest income on such loan is accrued. 18
105	105	‘‘(2) R
106	106	EFINANCINGS.—For purposes of sub-19
107	107	paragraphs (A) and (C) of paragraph (1), a loan 20
108	108	shall not be treated as made after the date of the 21
109	109	enactment of this section to the extent that the pro-22
110	110	ceeds of such loan are used to refinance a loan 23
111	111	which was made on or before the date of the enact-24
112	112	ment of this Act (or, in the case of any series of 25
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116	116	refinancings, the original loan was made on or be-1
117	117	fore such date). 2
118	118	‘‘(3) R
119	119	URAL OR AGRICULTURAL REAL ES -3
120	120	TATE.—The term ‘rural or agricultural real estate’ 4
121	121	means— 5
122	122	‘‘(A) any real property which is substan-6
123	123	tially used for the production of one or more 7
124	124	agricultural products, 8
125	125	‘‘(B) any single family residence— 9
126	126	‘‘(i) which is the principal residence 10
127	127	(within the meaning of section 121) of its 11
128	128	occupant, and 12
129	129	‘‘(ii) which is located in a rural area 13
130	130	within the meaning of section 1.11(b)(3) of 14
131	131	the Agricultural Credit Act of 1987 (12 15
132	132	U.S.C. 2019(b)(3)), 16
133	133	‘‘(C) any real property which is substan-17
134	134	tially used in the trade or business of fishing or 18
135	135	seafood processing, and 19
136	136	‘‘(D) any aquaculture facility. 20
137	137	‘‘(4) A
138	138	QUACULTURE FACILITY .—The term 21
139	139	‘aquaculture facility’ means any land, structure, or 22
140	140	other appurtenance that is used for aquaculture (in-23
141	141	cluding any hatchery, rearing pond, raceway, pen, or 24
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144	144	•HR 1822 IH
145	145	incubator) that is located in any State or any terri-1
146	146	tory of the United States. 2
147	147	‘‘(5) F
148	148	OREIGN ADVERSARY ENTITY .— 3
149	149	‘‘(A) I
150	150	N GENERAL.—The term ‘foreign ad-4
151	151	versary entity’ means— 5
152	152	‘‘(i) a foreign adversary, 6
153	153	‘‘(ii) a foreign person subject to the 7
154	154	jurisdiction of, or organized under the laws 8
155	155	of, a foreign adversary, and 9
156	156	‘‘(iii) a foreign person owned, di-10
157	157	rected, or controlled by an entity described 11
158	158	in clause (i) or (ii). 12
159	159	‘‘(B) F
160	160	OREIGN ADVERSARY .—The term 13
161	161	‘foreign adversary’ means— 14
162	162	‘‘(i) the People’s Republic of China, 15
163	163	including all Special Administrative Re-16
164	164	gions, 17
165	165	‘‘(ii) the Republic of Cuba, 18
166	166	‘‘(iii) the Islamic Republic of Iran, 19
167	167	‘‘(iv) the Democratic People’s Repub-20
168	168	lic of Korea, 21
169	169	‘‘(v) the Russian Federation, and 22
170	170	‘‘(vi) the Bolivarian Republic of Ven-23
171	171	ezuela during any period of time in which 24
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174	174	•HR 1822 IH
175	175	Nichola´s Maduro is President of the Re-1
176	176	public. 2
177	177	‘‘(d) C
178	178	OORDINATIONWITHSECTION265.—Qualified 3
179	179	real estate loans shall be treated as obligations described 4
180	180	in section 265(a)(2) the interest on which is wholly exempt 5
181	181	from the taxes imposed by this subtitle.’’. 6
182	182	(b) C
183	183	LERICALAMENDMENT.—The table of sections 7
184	184	for part III of subchapter B of chapter 1 of the Internal 8
185	185	Revenue Code of 1986 is amended by inserting after the 9
186	186	item relating to section 139I the following new item: 10
187	187	‘‘Sec. 139J. Interest on loans secured by rural or agricultural real property.’’.
188	188	(c) REPORT TOCONGRESS.—Not later than 5 years 11
189	189	after the date of the enactment of this Act, the Secretary 12
190	190	of the Treasury (or the Secretary’s delegate) shall submit 13
191	191	a written report to the Committee on Ways and Means 14
192	192	of House of Representatives and the Committee on Fi-15
193	193	nance of the Senate analyzing the impact of section 139J 16
194	194	of the Internal Revenue Code of 1986 (as added by sub-17
195	195	section (a)) on qualified real estate loans (as defined in 18
196	196	such section), including whether such section has resulted 19
197	197	in a reduction in the rate of interest on such loans. 20
198	198	(d) E
199	199	FFECTIVEDATE.—The amendments made by 21
200	200	this section shall apply to taxable years ending after the 22
201	201	date of the enactment of this Act. 23
202	202	Æ
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