Bill · H.R. 8591· House(119-HR-8591)
No Capital Gains Tax on Family Farms Act
- Introduced
- 4/30/2026
- Last activity
- 4/30/2026 — Referred to the House Committee on Ways and Means.
- Sponsored by
- Thomas Massie
- Cosponsors
- - 10 - 1
- Introduced
- In Committee
What this bill would do
This bill, known as the "No Capital Gains Tax on Family Farms Act," proposes to amend the Internal Revenue Code of 1986. It seeks to create a new exclusion from gross income regarding the gain realized from selling or exchanging qualified farm property. This exclusion would apply when the property is sold to a qualified family member. To qualify, the property must have been owned and used as a farm for a total of at least 2 years within the 8 years prior to the sale. The bill also establishes specific rules for how the basis of the property is handled after the sale.
Yes· 3 of 8
Would farmers be better off under this?+9
The bill provides a substantial tax-free exit or transfer option for qualified farm property owners.
Does this cut the tax on profits from selling investments?+8
The bill excludes gains from the sale of qualified farm property from gross income when sold to qualified family members.
Would people over 65 be better off under this?+5
The bill allows older farmers to transfer farm assets to heirs without facing a large capital gains tax burden.
The opposite
Does this reduce what the federal government spends?-2
The tax exclusion reduces federal revenue by exempting farm property gains from taxation.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Exclusion on Farm Sales: Under Section 2(a), the gain from the sale of qualified farm property to a qualified family member would not be included in gross income. This provides a tax benefit to taxpayers transferring farm interests to family members.
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Basis Increase Benefit: According to Section 2(c)(1)(B), if the qualified farm property is held for a 10-year period following the sale, the basis of the property in the hands of the family member can be increased. This increase is equal to the excess of the fair market value at the time of sale over the previous adjusted basis.
Potential Negative Impacts for People
-
Strict Ownership and Use Requirements: Under Section 2(b)(1), property only qualifies if it was owned and used as a farm for periods aggregating 2 years or more during the 8-year period ending on the date of the sale or exchange. This may exclude those whose farming operations do not meet these specific timing or duration requirements.
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Limited Definition of Family: Section 2(b)(2) restricts the tax exclusion to specific "qualified family members," which includes spouses, lineal descendants, or the spouses of those descendants. This limits the benefit to specific family structures.
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Farmers+9Good For Seniors+5Good For High Income Households+4Good For Rural Residents+4Good For Middle Class Households+3
- Economy And Finance
- Reduces Capital Gains Tax+8Reduces Government Spending-2
- Environment Energy And Infrastructure
- Improves Rural Development+4
- Social Issues And Justice
- Improves Affordable Housing+1
- 5/12/2026
- 1 Cosponsor added.
- 4/30/2026
- Referred to the House Committee on Ways and Means.
- 10 Cosponsors added.
- Introduced in House
Lauren BoebertRepublican · Colorado
Tim BurchettRepublican · Tennessee
Eric BurlisonRepublican · Missouri
Mike CollinsRepublican · Georgia
Warren DavidsonRepublican · Ohio
Chuck EdwardsRepublican · North Carolina
Julie FedorchakRepublican · North Dakota
Marie PerezDemocrat · Washington
Nancy MaceRepublican · South Carolina
Scott PerryRepublican · Pennsylvania
Chip RoyRepublican · Texas