Representatives Massie and Gluesenkamp Perez Introduce Bipartisan Bill to End Capital Gains Taxes on Family Farms

For Immediate Release Contact: John Kennedy, 202-225-3645 (Rep. Massie) Vince Morris, 202-225-3536 (Rep. Gluesenkamp Perez) Washington, D.C.- Representative Thomas Massie (R-KY) announces the introduction of H.R. 8591, the No Capital Gains Tax on Family Farms Act . The bill removes capital gains on the sale or exchange of a farm between family members (including children, siblings, cousins, and their spouses). Rep. Marie Gluesenkamp Perez (D-WA) is the co-lead on the legislation. "This bill will allow farmers to sell their land to family members without being forced to pay punitive capital gains taxes," said Rep. Massie . "This change to the tax law will help sustain America's multi-generational family farms by reducing the financial pressure on landowners to sell productive farmland to real estate developers and data center operators." “The wealth and health of our nation is married to the soil health and vitality of our farms-this bill recognizes that we need to change financial structures to advance the generational work of good farming,” said Rep. Gluesenkamp Perez. “When a loved one dies and ag land is split up for taxation, it disrupts the generational work that it takes to build healthy soil. By its very nature, the work of building healthy soil can’t be done on the same cycle as a 30-year mortgage.  We can’t treat land like any other financial asset, as though we’re just dividing nickels and dimes, and expect good results. Current tax policy breaks up generations of work and planning. The end result of that approach is an erosion of national health- I’m glad to work with my colleague on a solid step towards keeping farmland together and working.” Under current law, if a farmer were to sell their land to a child and retire, the transfer would incur steep capital gains taxes. The No Capital Gains Tax on Family Farms Act changes this by allowing qualifying family-to-family transfers to happen without incurring capital gains tax. Under the terms of the legislation, gains from the sale of qualified farm property are excluded from gross income. To discourage the immediate resale of farmland to property developers, the farm recipient retains the original basis of the property for a 10-year holding period. After that period, the basis steps up to the fair market value at the time of transfer, encouraging long-term family ownership while deterring short-term speculation. Original cosponsors of H.R. 8591 include Rep. Marie Gluesenkamp Perez (D-WA), Rep. Lauren Boebert (R-CO), Rep. Tim Burchett (R-TN), Rep. Eric Burlison (R-MO), Rep. Mike Collins (R-GA), Rep. Warren Davidson (R-OH), Rep. Chuck Edwards (R-NC), Rep. Julie Fedorchak (R-ND), Rep. Nancy Mace (R-SC), and Rep. Chip Roy (R-TX). The text of the No Capital Gains Tax on Family Farms Act is available at this link . ###