The U.S. Treasury Department and the Internal Revenue Service (IRS) has issued guidance for a new tax benefit for certain lenders that make loans secured by rural or agricultural real property.
Notice 2025-71 provides interim guidance that taxpayers may rely on until the Treasury Department and the IRS issue forthcoming proposed regulations.
The One Big Beautiful Bill (OBBB) passed by Congress earlier this year added section 139L to the Internal Revenue Code, which allows certain lenders to exclude from gross income 25 percent of the interest they receive from loans secured by rural or agricultural real property.
The interim guidance provided today defines key terms from section 139L, establishes standards for determining whether a loan is secured by rural or agricultural property, and provides rules regarding refinancings.
Interested parties are requested to submit comments about the notice to assist in the drafting of the forthcoming proposed regulations. Comments may be submitted through www.regulations.gov (type IRS-2025-0400 in the search field) or by mail, to Internal Revenue Service, CC:PA:01:PR (Notice 2025-71) Room 5503, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044.
For more information, please see the One, Big, Beautiful Bill provisions page on IRS.gov.
For more information, email Heather Line.
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