A bill to amend the Internal Revenue Code of 1986 to exempt certain livestock breeding from the rules requiring capitalization of preproductive expenses and to preclude farmers with gross receipts in excess of $5,000,000 from using a cash method accounting.

Amends the Internal Revenue Code to: (1) exempt livestock bred by the taxpayer (other than by embryo transplant) from rules requiring the capitalization of preproductive costs; and (2) permit an exception from required use of the accrual method of accounting for corporations engaged in farming and having gross receipts of $5,000,000 or less. (Current law permits an exception for S corporations, family corporations, and corporations having gross receipts of $1,000,000 or less.)