Equitable treatment of certain entities

(a) In general Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended— (1) in subsection (a)— (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following: (5) Qualified pass-through entity The term qualified pass-through entity means— (A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); (B) an S corporation (as defined in section 1361 of that Code); (C) a limited liability company that does not affirmatively elect to be treated as a corporation; and (D) a joint venture or general partnership.; (2) in subsections (b) and (c), by striking except a joint venture or general partnership each place it appears and inserting except a qualified pass-through entity; and (3) in subsection (d), by striking subtitle B of title I of the Agricultural Act of 2014 or. (b) Attribution of payments Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended— (1) in the clause heading, by striking joint ventures and general partnerships and inserting qualified pass-through entities; (2) by striking a joint venture or a general partnership and inserting a qualified pass-through entity; (3) by striking joint ventures and general partnerships and inserting qualified pass-through entities; and (4) by striking the joint venture or general partnership and inserting the qualified pass-through entity. (c) Persons actively engaged in farming Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2)) is amended— (1) subparagraphs (A) and (B), by striking a general partnership, a participant in a joint venture each place it appears and inserting a qualified pass-through entity; and (2) in subparagraph (C), by striking a general partnership, joint venture, or similar entity and inserting a qualified pass-through entity or a similar entity. (d) Joint and several liability Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by striking partnerships and joint ventures and inserting qualified pass-through entities. (e) Exclusion from AGI calculation Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended by striking, general partnership, or joint venture each place it appears.

(a) In general Section 1001 of the Food Security Act of 1985 (7 U.S.C. 1308) is amended— (1) in subsection (a)— (A) by redesignating paragraph (5) as paragraph (6); and (B) by inserting after paragraph (4) the following: (5) Qualified pass-through entity The term qualified pass-through entity means— (A) a partnership (within the meaning of subchapter K of chapter 1 of the Internal Revenue Code of 1986); (B) an S corporation (as defined in section 1361 of that Code); (C) a limited liability company that does not affirmatively elect to be treated as a corporation; and (D) a joint venture or general partnership.; (2) in subsections (b) and (c), by striking except a joint venture or general partnership each place it appears and inserting except a qualified pass-through entity; and (3) in subsection (d), by striking subtitle B of title I of the Agricultural Act of 2014 or. (b) Attribution of payments Section 1001(e)(3)(B)(ii) of the Food Security Act of 1985 (7 U.S.C. 1308(e)(3)(B)(ii)) is amended— (1) in the clause heading, by striking joint ventures and general partnerships and inserting qualified pass-through entities; (2) by striking a joint venture or a general partnership and inserting a qualified pass-through entity; (3) by striking joint ventures and general partnerships and inserting qualified pass-through entities; and (4) by striking the joint venture or general partnership and inserting the qualified pass-through entity. (c) Persons actively engaged in farming Section 1001A(b)(2) of the Food Security Act of 1985 (7 U.S.C. 1308–1(b)(2)) is amended— (1) subparagraphs (A) and (B), by striking a general partnership, a participant in a joint venture each place it appears and inserting a qualified pass-through entity; and (2) in subparagraph (C), by striking a general partnership, joint venture, or similar entity and inserting a qualified pass-through entity or a similar entity. (d) Joint and several liability Section 1001B(d) of the Food Security Act of 1985 (7 U.S.C. 1308–2(d)) is amended by striking partnerships and joint ventures and inserting qualified pass-through entities. (e) Exclusion from AGI calculation Section 1001D(d) of the Food Security Act of 1985 (7 U.S.C. 1308–3a(d)) is amended by striking, general partnership, or joint venture each place it appears.