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119-s-838119th CongressWALLET

ACRE Act of 2025

Sponsored By: Senator Moran, Jerry [R-KS]

Introduced

Summary

This bill would let certain lenders exclude interest earned on loans secured by rural and agricultural real estate from their taxable income. It creates detailed rules for which loans and lenders qualify and limits single-family rural loans to $750,000 in combined principal.

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  • Lenders: Banks with FDIC-insured deposits, state or federally regulated insurance companies, entities owned by bank or insurance holding companies, and specified Farm Credit institutions could exclude interest on qualifying rural real-estate loans from gross income.
  • Rural borrowers and landowners: Loans secured by farms, forestland, aquaculture facilities, fishing or seafood processing property, and qualifying single-family rural homes may be covered, including certain refinancings; single-family loans must total no more than $750,000.
  • National-security eligibility: Loans cannot be made to a defined "foreign adversary" entity, a category that lists countries including the People’s Republic of China, Cuba, Iran, North Korea, Russia, and Venezuela under Maduro.
  • Oversight: The bill requires a report to Congress within 5 years assessing how the new rule affected qualified real-estate loans, including whether it reduced interest rates.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Tax break for rural lenders

If enacted, banks, insured savings associations, many insurance companies, and some U.S. subsidiaries would not count interest from qualifying rural real estate loans as taxable income. That interest would be treated as wholly tax-exempt for the receiving lender. The change would apply to tax years ending after enactment. This would lower tax bills for eligible lenders and could influence how rural loans are priced.

Which rural loans and properties qualify

If enacted, loans secured by farm land, forestland, fishing or seafood processing property, and aquaculture facilities could qualify for the exclusion. Single-family homes qualify only if they are the occupant's principal residence and located in a statutory rural area. For those homes, the loan principal combined with other qualifying loans on that home may not exceed $750,000 when interest is accrued. New loans must be made after enactment, but some refinancings of older loans can still count. Loans to defined "foreign adversary entities" would not qualify.

Sponsors & CoSponsors

Sponsor

Moran, Jerry [R-KS]

KS • R

Cosponsors

  • Sen. Tuberville, Tommy [R-AL]

    AL • R

    Sponsored 3/4/2025

  • Sen. King, Angus S., Jr. [I-ME]

    ME • I

    Sponsored 3/4/2025

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 3/4/2025

  • Sen. Cramer, Kevin [R-ND]

    ND • R

    Sponsored 3/4/2025

  • Sen. Marshall, Roger [R-KS]

    KS • R

    Sponsored 3/5/2025

  • Sen. Rounds, Mike [R-SD]

    SD • R

    Sponsored 3/24/2025

  • Sen. Coons, Christopher A. [D-DE]

    DE • D

    Sponsored 5/6/2025

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 6/26/2025

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 8/1/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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