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139 STAT. 249 PUBLIC LAW 119–21—JULY 4, 2025 installment the date for payment of which has not arrived shall be collected at the same time as, and as a part of, such installment. The part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the Secretary. This section shall not apply if the deficiency is due to neg- ligence, to intentional disregard of rules and regulations, or to fraud with intent to evade tax. ‘‘(c) ELECTION.— ‘‘(1) IN GENERAL.—Any election under subsection (a) shall be made not later than the due date for the return of tax for the taxable year described in subsection (a). ‘‘(2) PARTNERSHIPS AND S CORPORATIONS.—In the case of a sale or exchange described in subsection (a) by a partnership or S corporation, the election under subsection (a) shall be made at the partner or shareholder level. The Secretary may prescribe such regulations or other guidance as necessary to carry out the purposes of this paragraph. ‘‘(d) DEFINITIONS.—For purposes of this section— ‘‘(1) APPLICABLE NET TAX LIABILITY.— ‘‘(A) IN GENERAL.—The applicable net tax liability with respect to the sale or exchange of any property described in subsection (a) is the excess (if any) of— ‘‘(i) such taxpayer’s net income tax for the taxable year, over ‘‘(ii) such taxpayer’s net income tax for such tax- able year determined without regard to any gain recog- nized from the sale or exchange of such property. ‘‘(B) NET INCOME TAX.—The term ‘net income tax’ means the regular tax liability reduced by the credits allowed under subparts A, B, and D of part IV of subchapter A. ‘‘(2) QUALIFIED FARMLAND PROPERTY.— ‘‘(A) IN GENERAL.—The term ‘qualified farmland prop- erty’ means real property located in the United States— ‘‘(i) which— ‘‘(I) has been used by the taxpayer as a farm for farming purposes, or ‘‘(II) leased by the taxpayer to a qualified farmer for farming purposes, during substantially all of the 10-year period ending on the date of the qualified sale or exchange, and ‘‘(ii) which is subject to a covenant or other legally enforceable restriction which prohibits the use of such property other than as a farm for farming purposes for any period before the date that is 10 years after the date of the sale or exchange described in subsection (a). For purposes of clause (i), property which is used or leased by a partnership or S corporation in a manner described in such clause shall be treated as used or leased in such manner by each person who holds a direct or indirect interest in such partnership or S corporation. ‘‘(B) FARM; FARMING PURPOSES.—The terms ‘farm’ and ‘farming purposes’ have the respective meanings given such terms under section 2032A(e). Regulations. Guidance. Deadline. Notice.