H.R.1822 - Access to Credit for our Rural Economy Act of 2025; ACRE Act of 2025 (119th Congress)
Summary
H.R.1822, the Access to Credit for our Rural Economy Act of 2025 (ACRE Act of 2025), proposes an amendment to the Internal Revenue Code of 1986. The amendment aims to exclude interest received on certain loans secured by rural or agricultural real property from gross income. This bill intends to provide financial relief to agricultural communities by incentivizing lending in rural areas.
Expected Effects
The bill, if enacted, would reduce the tax burden on lenders providing loans for rural and agricultural real estate. This could lead to increased availability of credit in these sectors. The exclusion applies to qualified lenders such as banks, savings associations, insurance companies, and certain instrumentalities of the United States.
Potential Benefits
- Increased access to credit for farmers and rural residents.
- Potential reduction in interest rates on agricultural loans.
- Stimulation of economic activity in rural areas.
- Support for the agricultural sector and related industries.
- Encouragement of investment in rural real estate and infrastructure.
Potential Disadvantages
- Potential revenue loss for the federal government due to the tax exclusion.
- Possible complexity in defining and administering 'qualified real estate loans'.
- Risk of benefiting larger agricultural operations more than small family farms.
- Potential for unintended consequences or loopholes in the legislation.
- Could disproportionately benefit specific lenders over others.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the general welfare clause of the Constitution (Preamble), as it aims to promote economic stability and prosperity in rural communities. Congress has the power to lay and collect taxes and provide for the general welfare of the United States. The bill falls under the purview of Congress's legislative powers as defined in Article I, Section 8, which grants Congress the power to regulate commerce and enact laws necessary and proper for carrying out its enumerated powers.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).