CONGRESS PASSES TAX PACKAGE INCLUDING KEY PROVISIONS FOR AGRICULTURE
The U.S. Senate voted yesterday (12/16) to approve the tax extenders package containing key provisions for small businesses, including farms and ranches. On a 76 to 16 vote, senators passed the tax extenders bill previously approved by the U.S. House. The bill now goes to President Barack Obama for his signature.
NCBA President Bob McCan said passage of the legislation is good news for the cattle industry because it encourages economic growth and provides greater certainty in the tax code. Of particular benefit to agriculture are section 179 expensing and bonus depreciation. Section 179 allows a higher deduction level for some capital expenditures, like machinery and equipment. During 2013, farmers and ranchers were able to expense up to $500,000 in capital investments, but the amount was lowered to $25,000 this year.
“For large equipment purchases and other capital investments, cattle producers need certainty in order to properly plan for their businesses,” said NCBA Director of Legislative Affairs Kent Bacus.
The retroactive extension covering this year again leaves producers operating under an expired tax code in 2015. Bacus said this could add the needed pressure to complete a comprehensive tax reform deal next year.
KLA Vice President of Communications Todd Domer highlights some of the policy discussed and approved by members during the recent annual convention in Wichita.