26 U.S.C. § 139L: Interest on loans secured by rural or agricultural real property

Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act ( 12 U.S.C. 1811 et seq.), any State- or federally-regulated insurance company, such entity is organized, incorporated, or established under the laws of the United States or any State, and the principal place of business of such entity is in the United States (including any territory of the United States), any entity wholly owned, directly or indirectly, by a company that is considered an insurance holding company under the laws of any State if such entity satisfies the requirements described in subparagraphs (A) and (B) of paragraph (3), and with respect to interest received on a qualified real estate loan secured by real estate described in subsection (c)(3)(A), any federally chartered instrumentality of the United States established under section 8.1(a) of the Farm Credit Act of 1971 ( 12 U.S.C. 2279aa–1(a) ). rural or agricultural real estate, or a leasehold mortgage (with a status as a lien) on rural or agricultural real estate, made to a person other than a specified foreign entity (as defined in section 7701(a)(51)), and made after the date of the enactment of this section. For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date). any real property which is substantially used for the production of one or more agricultural products, any real property which is substantially used in the trade or business of fishing or seafood processing, and any aquaculture facility. The term “aquaculture facility” means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator). by treating any qualified real estate loan for purposes of subsection (a)(2) thereof as an obligation the interest on which is wholly exempt from the taxes imposed by this subtitle, by substituting “25 percent of the interest on indebtedness” for “Interest on indebtedness” in such subsection (a)(2), by treating 25 percent of the adjusted basis of any qualified real estate loan as adjusted basis of a tax-exempt obligation described in subsection (b)(4)(B) thereof, and by substituting “25 percent of the amount of such indebtedness” for “the amount of such indebtedness” in subsection (b)(6)(A)(a)(ii) 1 thereof. 1 So in original. Probably should be “(b)(6)(A)(ii)”.