H.R. 1822 — ACRE Act of 2025

This section establishes an exclusion from gross income for interest received by qualified lenders on qualified real estate loans made after enactment. A qualified real estate loan is secured by rural or agricultural real estate (i.e., real property used for agricultural production, single-family principal residences in rural areas defined under 12 U.S.C. 2019(b)(3) as excluding cities or villages with populations exceeding 2,500, fishing or seafood processing property, or aquaculture facilities), forestland, or a leasehold mortgage thereon; made to non-foreign adversary entities (i.e., excluding the People's Republic of China including its special administrative regions, Cuba, Iran, North Korea, Russia, and Venezuela under Nicolás Maduro); and, for single-family residences, with proceeds used for purchase or improvement and aggregate principal not exceeding $750,000; refinancings are ineligible to the extent proceeds repay pre-enactment loans. Qualified lenders include FDIC-insured banks and savings associations, state- or federally regulated insurance companies, certain U.S.-based entities wholly owned by bank or insurance holding companies, and Farm Credit System institutions for loans secured by agricultural production property. The provision requires the Secretary of the Treasury to report to the House Ways and Means and Senate Finance Committees within five years analyzing the exclusion's impact on such loans, including any reduction in interest rates, and applies to taxable years ending after enactment.