Section 1 Short title
This Act may be cited as the “Farm Disaster Tax Cut Act”.
Farm Disaster Tax Cut Act
A BILL
To amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income.
Sec. 2 Crop insurance indemnity payments excluded 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 139L the following new section:
“139M. Crop insurance indemnity payments
“(a) In general—Gross income shall not include any crop insurance indemnity payment made pursuant to the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
“(b) Termination—This section shall not apply to any payment for losses which occur after December 31, 2028.”
Clerical 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 139L the following new item:
Effective date— The amendments made by this section shall apply to payments for losses which occur after August 5, 2024.