Farmers and Ranchers call for Tax Relief Tuesday

Farmers and Ranchers Call for ‘Tax Relief Tuesday’

By Erin Anthony  editor of the American Farm Bureau Federation’s FBNews e-newsletter and website.  Erin Anthony

 

With the holiday season in full swing and the year quickly coming to an end, farmers and ranchers are urging Congress to reinstate and extend expired tax provisions that help improve the economic viability and stability of our food, fiber and fuel production. Farmers need provisions like section 179 small business expensing and bonus depreciation to help them make business purchases while dealing with uncontrollable weather and unpredictable markets.

This fall, Farm Bureau and more than 2,000 other companies and organizations sent a letter to lawmakers explaining why these provisions, most of which expired at the end of 2014, are so important. And today we’re calling for a “Tax Relief Tuesday” to finally bring farmers, ranchers, and other small business owners across the country the relief and predictability they need for economic growth. Failure to pass a bill extending these provisions amounts to a tax increase.

Farmers and ranchers need a tax code that gives them certainty for long-term business decisions that can grow and expand their operations. Montana Farm Bureau President Bob Hanson, a White Sulphur Springs rancher, notes these tax provisions need to be passed now, not on the last day of the year when there is no time to purchase and take possession of equipment, and receive any deductions on the equipment for 2015.

Earlier this year, Congress took steps toward bringing these tax provisions back for 2015 and possibly longer. Back in July, the Senate Finance Committee extended through 2016 a package of tax provisions, including a number of those important to farmers and ranchers.

The Farm Bureau-supported provisions in the tax extender package include:

  • Section 179 Small Business Expensing: The maximum amount that a small business can immediately expense when purchasing business assets instead of depreciating them over time is $25,000. Last year, the maximum amount was $500,000, reduced dollar for dollar when expenditures exceed $2 million.
  • Bonus Depreciation: An additional 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment.
  • Incentives for renewable fuels and energy, including biodiesel, wind power and refueling property.
  • An enhanced deduction for donated food.
  • A provision encouraging donations of conservation easements.

 

On the House side in February, lawmakers passed the permanent extension of Section 179 small business expensing (H.R. 636), the tax deduction for donating food (H.R. 644) and the tax deduction for donating conservation easements (H.R. 644).

In addition, the House Ways and Means Committee in September approved a bill (H.R. 2510) to permanently extend 50 percent bonus deprecation. The measure would also expand the provision to include fruit- and nut-bearing plants with pre-productive periods of two or more years.

It’s time for Congress to finish what they started. Delaying these tax extenders will only delay economic growth and prevent farmers and ranchers from reinvesting in their businesses and local communities. Join Farm Bureau in calling on Congress to bring small businesses across the country the tax relief they need.

http://www.fb.org/newsroom/focus/234/

 

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