A bill to amend the Internal Revenue Code of 1986 to provide that certain transfers of a commodity pledged as collateral for Commodity Credit Corporation loans not be taken into account in computing Federal income tax liability.

Amends Internal Revenue Code provisions relating to commodity credit loans. Provides that when a taxpayer transfers a commodity that serves as collateral for a Commodity Credit Corporation loan, repays the loan with the proceeds of the transfer, and repurchases the commodity with a commodity certificate, the original transfer shall not be considered a taxable event for income tax purposes.

Applies retroactively, with a limited exception, to loan redemptions occurring in 1986 and thereafter.