MODIFICATIONS OF TAX-EXEMPT BOND RULES FOR FIRST-TIME FARMERS.

SEC. 1117. MODIFICATIONS OF TAX-EXEMPT BOND RULES FOR FIRST-TIME FARMERS. (a) Acquisition From Related Person Allowed.— Section 147(c)(2) (relating to exception for first-time farmers) is amended by adding at the end the following new subparagraph: “(G) Acquisition from related person.— For purposes of this paragraph and section 144(a), the acquisition by a first-time farmer of land or personal property from a related person (within the meaning of section 144(a)(3)) shall not be treated as an acquisition from a related person, if— “(i) the acquisition price is for the fair market value of such land or property, and “(ii) subsequent to such acquisition, the related person does not have a financial interest in the farming operation with respect to which the bond proceeds are to be used.”. (b) Substantial Farmland Amount Doubled.— Clause (i) of section 147(c)(2)(E) (defining substantial farmland) is amended by striking “15percent” and inserting “30 percent”. (c) Effective Date.— The amendments made by this section shall apply to bonds issued after the date of the enactment of this Act.