Family Farmer and Rancher Tax Fairness Act of 2023

HR 5341, the Family Farmer and Rancher Tax Fairness Act of 2023, ensures that certain pandemic relief payments made to farmers and ranchers under the American Rescue Plan Act of 2021 and related legislation are not counted as taxable income. Specifically, it excludes payments described in sections 1006(e) of the ARP Act and 22006 of Public Law 117-169 from gross income for recipients. This means eligible farmers and ranchers receiving these payments will not owe income tax on them, and it prevents related tax adjustments that would otherwise reduce deductions or basis. The bill directly affects agricultural businesses that received these specific federal payments during the pandemic.