ACRE Act of 2025

The ACRE Act of 2025 excludes interest income from certain rural and agricultural loans from taxable income for specific lenders. It directly affects qualified lenders (like banks, farm credit institutions, and insurance companies) and borrowers securing loans for rural property, including single-family homes in rural areas or agricultural land. Key provisions allow lenders to not count interest on qualifying loans as taxable income, provided the loans are secured by eligible rural/agricultural property, don’t exceed $750,000 for single-family homes, and avoid "foreign adversary entities" (like China, Russia, or Iran). The bill also requires a Treasury report on the policy’s impact after five years.