Oklahoma Cattlemen Urge Yes Vote on Omnibus that Repeals COOL and Tax Extenders PackageWed, 16 Dec 2015 20:02:36 CST
Michael Kelsey, Executive Vice President of the Oklahoma Cattlemen's Association, has provided us with the following statement of support for the Omnibus Budget Deal and Tax Extenders Package that will be considered by the US Congress as they end their 2015 Congressional session:
"Today and tomorrow the House and Senate will be considering very important bills for the Oklahoma cattle industry. They include language that repeals country of origin labeling, more clearly defines the dietary guidelines process, limitations on USDA APHIS meat import guidelines, language that makes permanent the small business expense limits (section 179 tax policy) and extension of the bonus depreciation schedule. These provisions are good for Oklahoma cattle producers and OCA is encouraging our congressmen and senators to vote yes on these two important bills."
OCA released a call to action to their members and others in agriculture to contact their members of Congress and urge a yes vote on the Omnibus and Tax Package. Here is a portion of the background they provided their members on Wednesday.
NCBA and OCA have reviewed the language of the tax policy bill that the House will be voting on as early as tomorrow. NCBA has done great work to make sure priority language friendly to cattle producers is included.
We encourage you to notify your Congressman immediately encouraging them to vote 'YES' on this important language. Below is a summary of the language for your review. Key points are: permanent language for Section 179 that is good for agriculture and extends the bonus depreciation provision.
Here are the numbers for Congressional offices. If no one answers, please leave a short message encouraging the member to vote yes.
District 1 - Rep. Jim Bridenstine - 202-225-2211
District 2 - Rep. Markwayne Mullin (OCA life member) - 202-225-2701
District 3 - Rep. Frank Lucas (OCA member) - 202-225-5565
District 4 - Rep. Tom Cole - 202-225-6165
District 5 - Rep. Steve Russell - 202-225-2132
Section 111. Extension and modification of special rule for contributions of capital gain real property made for conservation purposes.
The provision permanently extends the charitable deduction for contributions of real property for conservation purposes. The provision also permanently extends the enhanced deduction for certain individual and corporate farmers and ranchers. The provision modifies the deduction beginning in 2016 to permit Alaska Native Corporations to deduct donations of conservation easements up to 100 percent of taxable income.
Section 124. Extension and modification of increased expensing limitations and treatment of certain real property as section 179 property.
The provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014 ($500,000 and $2 million, respectively). These amounts currently are $25,000 and $200,000, respectively. The special rules that allow expensing for computer software and qualified real property (qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property) also are permanently extended. The provision modifies the expensing limitation by indexing both the $500,000 and $2 million limits for inflation beginning in 2016 and by treating air conditioning and heating units placed in service in tax years beginning after 2015 as eligible for expensing. The provision further modifies the expensing limitation with respect to qualified real property by eliminating the $250,000 cap beginning in 2016.
Section 143. Extension and modification of bonus depreciation.
The provision extends bonus depreciation for property acquired and placed in service during 2015 through 2019 (with an additional year for certain property with a longer production period). The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down, with 40 percent in 2018, and 30 percent in 2019. The provision continues to allow taxpayers to elect to accelerate the use of AMT credits in lieu of bonus depreciation under special rules for property placed in service during 2015. The provision modifies the AMT rules beginning in 2016 by increasing the amount of unused AMT credits that may be claimed in lieu of bonus depreciation. The provision also modifies bonus depreciation to include qualified improvement property and to permit certain trees, vines, and plants bearing fruit or nuts to be eligible for bonus depreciation when planted or grafted, rather than when placed in service.
Other Items of Interest
Section 331. Deductibility of charitable contributions to agricultural research organizations.
The provision provides that charitable contributions to an agricultural research organization are subject to the higher individual limits (generally up to 50 percent of the taxpayer's contribution base) if the organization commits to use the contribution for agricultural research before January 1 of the fifth calendar year that begins after the date of the contribution. In addition, agricultural research organizations are treated as public charitiesper se, without regard to their sources of financial support. The provision is effective for contributions made on or after the date of enactment.
Section 174. Moratorium on medical device excise tax.
The provision provides for a two-year moratorium on the 2.3-percent excise tax imposed on the sale of medical devices. The tax will not apply to sales during calendar years 2016 and 2017.
Section 121. Extension and modification of research credit.
The provision permanently extends the research and development (R&D) tax credit. Additionally, beginning in 2016 eligible small businesses ($50 million or less in gross receipts) may claim the credit against 3 alternative minimum tax (AMT) liability, and the credit can be utilized by certain small businesses against the employer's payroll tax (i.e., FICA) liability.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News