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(Posted Tue. Nov 18th, 2014)
In a letter sent Monday, the National Corn Growers Association joined more than 40 agricultural groups asking Senate and House leaders to renew important tax provisions during the lame-duck session.
The letter (available at this link) specifically focuses on Section 179, an expired tax provision relating to capital expenditures and bonus depreciation.
“Farmers and ranchers place great value on tax code provisions such as Section 179 small business expensing and bonus depreciation. Section 179 allows them to write off capital expenditures in the year that purchases are made rather than depreciate them over time,” the letter states. “The ability to immediately expense substantial capital purchases also provides an incentive for farmers and ranchers to invest in their businesses.”
The letter also encourages Congress to reinstate the expired 50 percent bonus depreciation for the purchase of new capital assets. “The tax code is already unpredictable and often unfair to farm families,” said Jim Reed, chair of NCGA’s Public Policy Action Team. “Farming requires significant investment in machinery and equipment. That’s why it’s so important we have tax provisions that allow farmers to take advantage of good years, invest in their operations, and streamline their recordkeeping.”