Farm Disaster Tax Cut Act
A bill to amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income.
This bill, SB4502, proposes to change the Internal Revenue Code to exclude crop insurance indemnity payments from being considered as income for tax purposes. This means that farmers who receive payments from crop insurance due to natural disasters or other covered events would not have to pay taxes on these payments. This change would directly benefit farmers who rely on crop insurance to protect against financial loss due to unforeseen events.
The bill was introduced on May 12, 2026, by Jon Ossoff and has been referred to the Committee on Finance for further review. Currently, the bill is in its early stages, having been read twice and referred. There have been no significant actions or votes taken on this bill yet.
As of the last update on May 12, 2026, the bill was read twice and referred to the Senate Committee on Finance. The committee will now review the bill, consider any amendments, and decide whether to advance it to the full Senate for a vote. The outcome of this process will determine the next steps for the bill.
