Agricultural News
Ag Coalition Urges Congress to Act on Tax Extenders
Tue, 18 Nov 2014 16:03:17 CST
America's farmers and ranchers are ready for Congress to act swiftly to restore tax provisions essential to boosting small businesses and rural economies. A number of agricultural groups including the National Cattlemen's Beef Association, American Farm Bureau Federation, Public Lands Council, among many others sent a letter to House and Senate leadership Tuesday urging both houses to act on expired tax policies before the end of the year. The groups urged members of both chambers to work across the aisle to renew and preserve important tax provisions that expired at the end of 2013.
"Farmers and ranchers rely on tax provisions that allow them to manage their cash flow and put that money back to work for their businesses," said AFBF President Bob Stallman. "Section 179 and bonus depreciation are important tools that lend stability and help minimize risk in an unpredictable industry."
Agriculture is overwhelmingly united in its support of Section 179 and bonus depreciation, which provide flexible means for farm and ranch businesses to write off and deduct business expenses.
"We're seeing a broad level of support here because these tax provisions make for good business. They allow farmers and ranchers to plan wisely," Stallman said. "Congress needs to act now if we're going to see continued growth in the agriculture sector."
These provisions allow businesses to maximize investments in years where they have positive cash flow, by taking a greater depreciation amount upfront rather than follow the standard schedule. Set at $500,000 in 2013, the maximum amount a small business can currently deduct under Section 179 is $25,000. Letters of support have been sent by groups from around the country, including the Broad Tax Extender Coalition. The coalition's letter has been signed by more than 500 organizations.
"Producers rely on a stable and predictable tax code in order to plan purchases, make investments and grow their business," said NCBA President and Victoria, Texas cattleman, Bob McCan. "We are already at the eleventh hour for tax planning, and it is incredibly important that Congress pass these extenders as quickly as possible."
"Agriculture relies heavily on large investments in machinery, equipment and other depreciable assets," said McCan. "And these tax provisions encourage cattlemen and women to make purchases and invest in expansion of their business, in turn investing in the expansion of rural America."
Farm Bureau also called on Congress to renew tax incentives that would promote clean, renewable, domestic energy, as well as provisions that encourage donations of conservation easements and promote charitable donations to food banks.
To read the letter submitted by ag groups, click here.
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