The U.S. House Ways and Means Committee passed a tax package last week that would provide significant tax relief to family farms and ranches. The bill contains several beneficial provisions, including an increase in the exemption amount for the federal estate tax, also known as the death tax. The package now must be approved by the full House as part of the reconciliation process.
Provisions in the bill that would help family-owned cattle operations the most are permanently increasing estate and gift tax exemption amounts to $15 million per individual and $30 million per couple, permanently increasing the Section 199A small business deduction from 20% to 23%, expanding the limitation on the Section 179 expense deduction from $1 million to $2.5 million and reinstating the 100% bonus depreciation for five years without a phase-out period.
“NCBA has long been advocating for full repeal of the death tax and while we continue to fight for full repeal, we are happy to see an increase in the exemption that will provide tremendous certainty to producers,” said NCBA Executive Director of Government Affairs Kent Bacus. “Expanding tax deductions like Section 199A, Section 179 and bonus depreciation will not only preserve family cattle operations, but promote growth across America’s Main Street businesses and rural America.”