IN THE SENATE OF THE UNITED STATES
May 23 (legislative day, May 22), 2019
Mr. Roberts (for himself, Mr. Moran, Mr. Hoeven, and Mr. Cramer) introduced the following bill; which was read twice and referred to the Committee on Finance
To amend the Internal Revenue Code of 1986 to exclude from gross income interest received on certain loans secured by agricultural real property.
This Act may be cited as the
Enhancing Credit Opportunities in Rural America Act of 2019 or as the
ECORA Act of 2019.
Exclusion for interest on loans secured by agricultural real property
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:
Interest on loans secured by agricultural real property
Gross income shall not include interest received by a qualified lender on any qualified real estate loan.
For purposes of this section—
The term qualified lender means any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act (12 U.S.C. 1811 et seq.).
Qualified real estate loan
The term qualified real estate loan means any loan secured by agricultural real estate or by a leasehold mortgage (with a status as a lien) on agricultural real estate. For purposes of the preceding sentence, the determination of whether property securing such loan is agricultural real estate shall be made as of the time the interest income on such loan is accrued.
Agricultural real estate
The term agricultural real estate means—
real property which is substantially used for the production of one or more agricultural products, and
any single family residence—
which is the principal residence (within the meaning of section 121) of its occupant,
which is located in a rural area (as determined by the Secretary of Agriculture), which is not within a Metropolitan Statistical Area (as defined by the Office of Management and Budget) and which has a population (determined on the basis of the most recent decennial census for which data are available) of 2,500 or less, and
which is purchased or improved with the proceeds of the qualified real estate loan.
Coordination with section 265
Qualified real estate loans shall be treated as obligations described in section 265(a)(2) the interest on which is wholly exempt from the taxes imposed by this subtitle.
The table of sections for such part III is amended by inserting after the item relating to section 139G the following new item:
Sec. 139H. Interest on loans secured by agricultural real property.
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.