Exclusion of Interest on Loans Secured by Rural or Agricultural Real Property |
No special exclusion for such interest. |
25 % of interest received by qualified lenders on such loans is excluded from gross income. |
Reduces borrowing costs for rural / agricultural businesses, incentivizing investment in these areas. |
Treatment of Capital Gains from Sale of Farmland |
No special installment option for capital gains tax on farmland sales. |
Allows payment of tax in 4 equal annual installments for sales to qualified farmers, with restrictions. |
Eases liquidity constraints for sellers, potentially facilitating more farmland sales to active farmers. |
Exception to Percentage of Completion for Certain Residential Construction |
Exception applied only to home construction contracts. |
Expanded to include residential construction contracts, with a 3-year completion test for non-home contracts. |
Allows more residential construction businesses to use the completed contract method, potentially deferring income recognition and reducing current tax liability. |