Number: RS22851
Title: The Conservation Reserve Program: Legal Analysis of Proposed Legislation to Change the Structure and Taxation of Benefits Received
Authors: Carol A. Pettit, American Law Division 
Abstract: The Internal Revenue Service considers payments received under the Conservation Reserve Program (CRP) self-employment income even though they are called "annual rental payments," and rental income from real property is generally excluded from selfemployment income. Bills have been repeatedly introduced before Congress to statutorily exclude the CRP payments from self-employment tax, but these bills generally have died in committee. In the 110th Congress, the Senate passed H.R. 2419, which contains a provision that would exclude the payments from self-employment income in some, but not all, cases. Unlike most previously introduced legislation, it would also provide a tax credit as an optional alternative to the current annual rental payments. This credit would be subject to neither income tax nor self-employment tax.
Pages: 6
Date: April 22, 2008