Budget & Taxes (Income Tax · Agriculture)

This bill allows farmers who sell qualified farmland to a "qualified farmer" to exclude capital gains from their taxable income if they reinvest the proceeds into an individual retirement plan (IRA) within 60 days. To qualify, the land must have been used for farming by the seller for 10 years, and the buyer must agree in writing to maintain the land as farmland for at least 10 years. If the buyer sells the land or stops using it for farming within that decade, they must repay the excluded gains plus interest as an additional tax. The bill also temporarily increases IRA contribution limits for these reinvestments, applying to sales after the law's enactment.