S4502Referred to Committee

Farm Disaster Tax Cut Act

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Introduced
In Committee
3
Passed One Chamber
4
Passed Both
5
Signed into Law
119th
Congress
2026-05-12
Introduced
0
Cosponsors
S
ⓘ
Type

Sponsor

Jon Ossoff
Jon Ossoff
Democrat · GA · Senator
Votes with party: 82.4% (800 recorded votes)
Top industries funding sponsor:
  • Climate & Environment$102k
  • Tech & Internet$42k

Full profile: /officials/O000174

Source: Congress.gov · FEC

Cosponsors (0)

Members who have signed on to support this bill since introduction. Source: Congress.gov.

No cosponsors on record. Bills can pass without cosponsors — this often means the sponsor introduced the bill alone, either because it's a messaging bill, a chairman's mark, or simply early in the legislative cycle.

Latest Action

The most recent step in the bill's legislative path. Committee Activity below shows referrals and reports; the full action-by-action history including floor proceedings lives at Congress.gov →

Read twice and referred to the Committee on Finance.

2026-05-12

Source: Congress.gov

Committee Activity

Currently in

Plain-English Summary

Farmers who receive insurance payments when their crops are damaged or destroyed would no longer have to count those payments as income for tax purposes. This would reduce the tax burden on agricultural operations that experience crop losses due to weather, disease, or other covered events. The change would primarily benefit farmers and ranchers who carry crop insurance policies.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

Subjects

Taxation

Full Bill Text

Verbatim text published on Congress.gov via GovInfo. Use Cmd+F / Ctrl+F to search within this excerpt.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4502 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4502 To amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES May 12, 2026 Mr. Ossoff introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Farm Disaster Tax Cut Act''. SEC. 2. CROP INSURANCE INDEMNITY PAYMENTS EXCLUDED FROM GROSS INCOME. (a) 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: ``SEC. 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.''. (b) 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: ``Sec. 139M. Crop insurance indemnity payments.''. (c) Effective Date.--The amendments made by this section shall apply to payments for losses which occur after August 5, 2024. <all>
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