“(a) In general.—In the case of a bank described in subsection (c), gross income shall not include qualified interest received from a small business during the taxable year.

“(b) Qualified interest.—The term ‘qualified interest’ means, with respect to a small business, interest on indebtedness of not more than $5,000,000—

“(1) secured by land situated in the United States that is used or held by the small business in connection with the active conduct of a farming business, or

“(2) incurred in the ordinary course of the trade or business of the small business.

“(c) Bank described.—

“(1) IN GENERAL.—A bank is described in this subsection if the bank has less than $50,000,000,000 in assets at the close of the preceding taxable year.

“(2) BANK DEFINED.—For purposes of this subsection—

“(A) IN GENERAL.—The term ‘bank’ means—

“(i) any financial institution described in section 581 or 591, and

“(ii) a corporation which, under the laws of the State of its incorporation, is subject to supervision and examination by the Commissioner of Banking or other officer of such State in charge of the administration of the banking laws of such State.

“(B) HOLDING COMPANY.—The term ‘bank’ includes—

“(i) any bank holding company (within the meaning of section 2(a) of the Bank Holding Company Act of 1956), and

“(ii) any subsidiary of a financial institution described in section 581 or 591 or of any bank holding company if such subsidiary is predominantly engaged (directly or indirectly) in the active conduct of a banking, financing, or similar business.

“(d) Small business.—The term ‘small business’ means a small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).

“(e) Farming business.—The term ‘farming business’ has the meaning given such term by section 263A(e)(4).”.