Sponsor
Thomas Jonathan Ossoff
Senator · D-GA
Senator · D-GA
Official title: Amend the Internal Revenue Code of 1986 to exclude crop insurance indemnity payments from gross income.
Introduced May 12, 2026 by Thomas Jonathan Ossoff · Last progress May 12, 2026
The bill temporarily shields Federal Crop Insurance indemnities from taxable income to give insured farmers quicker, simpler disaster relief, at the cost of reduced federal revenue, potential fairness concerns, and uncertainty after the 2028 sunset.
Farmers receiving Federal Crop Insurance indemnities will not have to report those indemnity payments as taxable income for losses occurring after Aug 5, 2024 through Dec 31, 2028, increasing their after‑tax recovery from disaster losses.
Farmers and rural tax filers will face simpler tax treatment for disaster indemnities, reducing filing complexity and the risk of unexpected tax liability during recovery years.
All taxpayers: excluding indemnities from taxable income reduces federal tax receipts and could increase deficits or crowd out other federally funded programs.
Farmers and agricultural planners: the exclusion sunsets on Dec 31, 2028, creating uncertainty about future tax treatment and complicating long‑term financial planning.
Uninsured farmers and other disaster assistance recipients: the exclusion advantages insured farmers over those who don't receive indemnities, raising distributional fairness concerns in disaster relief.
Based on analysis of 2 sections of legislative text.
Temporarily excludes federally authorized crop insurance indemnity payments from gross income for losses after Aug 5, 2024 through Dec 31, 2028.
Excludes federally authorized crop insurance indemnity payments from gross income for federal tax purposes for losses occurring after August 5, 2024 through December 31, 2028. The change adds a temporary new exclusion to the Internal Revenue Code so qualifying crop insurance payouts are not taxed during that period.