Agricultural News
Ag Groups Urge Congress to Move Now on Tax Extenders To Help End of Year Business Planning
Tue, 17 Nov 2015 06:08:25 CST
A whole host of agriculture groups- from the National Cattlemen's Beef Association to the American Farm Bureau and even the Pro Rodeo Cowboys Association- have sent a letter to House and Senate leadership urging Congress to take up legislation addressing expired tax extenders.
National Cattlemen's Beef Association President Philip Ellis of Chugwater, Wyo., said it is critical to address expired tax provisions for long-term business planning.
"Farmers and ranchers like myself rely on a stable and predictable tax code in order to plan purchases, make investments, and grow their businesses," said Ellis. "Each year producers make significant financial determinations, and Congress' failure to act on permanent tax reform has placed greater reliance on extender legislation over the past few years."
The letter specifically focuses on Section 179 and bonus depreciation, which allows producers to write off a greater part of capital expenditures in the year that purchases were made rather than depreciate them over time. This provides an incentive for farmers and ranchers to invest in their businesses and offers the benefit of reducing the record-keeping burden associated with depreciation.
Under the expired law, the maximum amount that a small business can immediately expense when purchasing business assets is $25,000, adjusted for inflation, with the rest to be depreciated over time. The groups are encouraging Congress to restore the maximum amount of expensing under Section 179 to $500,000, as it was set in 2014.
Furthermore, the groups urge Congress to reinstate the expired 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment and buildings.
"The failure to renew these expired provisions of the tax code will place additional burdens on farm and ranch families who are asset-rich and cash-poor and already face the uncertainties of weather, market prices and international competition," the letter reads.
Greater certainty in the tax code supports small businesses and rural America. NCBA continues to call on Congress take up a multi-year comprehensive tax extenders package, providing much-needed stability for 2016 and beyond.
Radio Oklahoma Farm Director Ron Hays talked with Colin Woodall of the NCBA about the Tax Extender issue last week in Kansas City at the National Association of Farm Broadcasting convention- click on the LISTEN BAR below to hear Colin's analysis of this issue.
Click here to read the entire letter and see the list of groups that signed it.
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