Interest on loans secured by rural or agricultural real property

Gross income shall not include 25 percent of the interest received by a qualified lender on any qualified real estate loan. For purposes of this section, the term “qualified lender” means— any entity wholly owned, directly or indirectly, by a company that is treated as a bank holding company for purposes of section 8 of the International Banking Act of 1978 (12 U.S.C. 3106) if— For purposes of this section— The term “qualified real estate loan” means any loan— secured by— For purposes of subparagraphs (A) and (C) of paragraph (1), a loan shall not be treated as made after the date of the enactment of this section to the extent that the proceeds of such loan are used to refinance a loan which was made on or before the date of the enactment of this section (or, in the case of any series of refinancings, the original loan was made on or before such date). The term “rural or agricultural real estate” means— The term “aquaculture facility” means any land, structure, or other appurtenance that is used for aquaculture (including any hatchery, rearing pond, raceway, pen, or incubator). In the case of any qualified real estate loan, section 265 shall be applied—