HR 6836

This bill, the Beginning Farmer Tax Incentive Act, aims to help new farmers succeed by providing tax relief. It allows beginning farmers to exclude 40% of the gain from selling qualifying farmland and exclude income from leasing farmland to a beginning farmer for terms up to 10 years. The bill defines ‘qualifying farmland’ and ‘beginning farmer’ with specific criteria, including a 5-year ownership and material participation requirement for the land and meeting certain certification standards. It also includes a recapture provision to prevent permanent tax benefits if the land is no longer used for farming.