Section 1 Short title
This Act may be cited as the “Student Agriculture Protection Act of 2019”.
Student Agriculture Protection Act of 2019
A BILL
To amend the Internal Revenue Code of 1986 to exclude from gross income certain amounts realized on the disposition of property raised or produced by a student agriculturist, and for other purposes.
Sec. 2 Exclusion of certain gain by student agriculturists from gross income
In general— Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139G the following new section:
“139H. Gain from property produced or raised by a student agriculturist
“(a) In general—In the case of a student agriculturist, gross income shall not include so much of the gain from qualified dispositions during the taxable year as does not exceed $5,000.
“(b) Definitions—For purposes of this section—
“(1) Student agriculturist—The term student agriculturist means an individual who has not attained age 22 and who is enrolled in—
“(A) an FFA chapter or a program established by the National FFA Organization,
“(B) a 4–H Club or other program established by 4–H, or
“(C) any student agriculture program similar in nature to a club or program described in subparagraph (A) or (B) which is under the direction or guidance of an agricultural educator, advisor, or club leader.
“(2) Qualified disposition
“(A) In general—The term qualified disposition means a sale or exchange of qualified property by or on behalf of a student agriculturist (determined as of the date of the sale or exchange) which occurs—
“(i) during an activity of a type described in paragraph (2)(B) or (3)(B) of section 513(d), or
“(ii) under the supervision of a program described in subparagraph (A), (B), or (C) of paragraph (1).
“(B) Qualified property—For purposes of subparagraph (A), the term qualified property means personal property, including livestock, crops, and agricultural mechanics or shop projects, produced or raised—
“(i) by the student agriculturist by or on behalf of whom the sale or exchange is made, and
“(ii) under the supervision of a program described in subparagraph (A), (B), or (C) of paragraph (1).”
Conforming amendment— The table of sections for part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 139G the following new item:
Effective date— The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.