1. Short title This Act may be cited as the Access to Credit for our Rural Economy Act of 2023 or as the ACRE Act of 2023 . 2. Exclusion of interest on loans secured by rural or agricultural real property (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139I the following new section: 139J. Interest on loans secured by rural or agricultural real property (a) In general Gross income shall not include interest received by a qualified lender on any qualified real estate loan. (b) Qualified lender For purposes of this section, the term qualified lender means— (1) any bank or savings association the deposits of which are insured under the Federal Deposit Insurance Act ( 12 U.S.C. 1811 et seq. ), and (2) 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— (A) such entity is organized, incorporated, or established under the laws of the United States or any State of the United States, and (B) the principal place of business of such entity is in the United States. (c) Qualified real estate loan For purposes of this section— (1) In general The term qualified real estate loan means any loan— (A) secured by rural or agricultural real estate or by a leasehold mortgage (with a status as a lien) on rural or agricultural real estate, and (B) in the case of any loan with respect to single family residence described in paragraph (2)(B)— (i) the proceeds of which are used to purchase or improve such residence, and (ii) the principal of which (when added to the principal of all other such loans with respect to such residence) does not (as of the time the interest income on such loan is accrued) exceed $750,000. For purposes of the preceding sentence, the determination of whether property securing such loan is rural or agricultural real estate shall be made as of the time the interest income on such loan is accrued.