S. 4502

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4502 Introduced in Senate (IS)]

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119th CONGRESS
2d Session
S. 4502

To amend the Internal Revenue Code of 1986 to exclude crop insurance 
indemnity payments from gross income.

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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

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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.
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