Ag Policy Blog
Chris Clayton DTN Ag Policy Editor

Wednesday 05/14/14

Tax Extenders and Acronyms for the AGES

The Senate voted 96-3 on Tuesday to begin debate on the tax-extenders bill, called the EXPIRE Act (Expiring Provisions Improvement Reform and Efficiency Act.) Personally, I don't think they put a lot of effort into that acronym, but it is what it is.

While the Senate is moving ahead, the House has not put forward a bill dealing with the full range of tax credits that have expired and need reauthorization. This likely means that despite the Senate's movement, a final bill probably won't be done until a lame-duck session after the mid-term elections.

The EXPIRE Act has some key provisions for farmers, especially when it comes to machinery expenses. The bill would boost and extend the Section 179 deduction through 2015 with an expense cap of $500,000 and a full purchase phase-out after $2 million in machinery purchases. Because of the lapse in extension, right now, the deduction is set at $25,000 and the maximum equipment purchases is $200,000. The extenders bill also would include a future index for inflation.

The bill also extends 50% bonus depreciation for qualified property put into service before by Jan. 1, 2016.

The Senate bill also has several provisions that are being tracked by the renewable fuels and wind-energy sectors:

Cellulosic tax credit extension of $1.01 per gallon through the end of 2015.

Biodiesel tax credit of $1 per gallon extended through 2015, as well as the 10-cent per gallon small agri-biodiesel producer credit.

Wind Production Tax Credit of 2.3 cents per kilowatt is extended through 2015.

A new acronym for the books:

From a reader who knows my love of government acronyms comes this one: We can't just call it a highway bill and the guys at the U.S. Department of Transportation apparently didn't like MAP 21 (Moving Ahead for Progress in the 21st Century) so the DOT raised the bar on word association with GROW AMERICA (Generating Renewal, Opportunity, and Work with Accelerated Mobility, Efficiency, and Rebuilding of Infrastructure and Communities throughout America Act.) This is effectively the Obama administration's alternative highway-bill proposal.

There are probably committee staff meetings set throughout the House and Senate this week to chew out the legislative acronym interns that let GROW AMERICA slip through their fingers. I still like HIGHWAY Bill (Hey, I Got Here Way Ahead of You, Bill.) http://www.dot.gov/…

Follow me on Twitter @ChrisClaytonDTN

Posted at 7:47AM CDT 05/14/14 by Chris Clayton
Comments (2)
I hope eliminating the need to capitalize all repairs over $500 is part of the EXPIRE Act as well!
Posted by LeeFarms at 10:44AM CDT 05/19/14
Is it not a waste of time and money discussing, " Expire" thru 2015? Expire will be expired prior to much of this years calf crop expiring.
Posted by Bonnie Dukowitz at 5:31AM CDT 05/20/14
Post a Blog Comment:
Your Comment:
DTN reserves the right to delete comments posted to any of our blogs and forums, for reasons including profanity, libel, irrelevant personal attacks and advertisements.
Blog Home Pages
September  2014
S M T W T F S
   1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30            
Subscribe to Ag Policy Blog RSS
Recent Blog Posts
  • EPA Water Rule Starts in the Ephemeral Streams
  • Looking at Base Acre Decisions Facing Farmers
  • Report: U.S. Lost WTO Ruling
  • NFU Leaders Want to Walk Away from Beef Talks
  • RMA Readying Details on Spring Crops and SCO
  • USDA Readies STAX for 2015
  • 2014 Corn Crop Could Gut Farm Bill Savings
  • House Ag Leaders Push Vilsack on Grain Inspectors
  • Roberts Wins in Kansas; Right to Farm Appears to Win in Missouri
  • Conservation Program, Cover-Crop Research Advance
  • Farmers Urged to Give Lawmakers Earful on CWA, Immigration
  • USDA Releases Greenhouse Gas Report
  • USDA Says SCO Insurance is Ready for 2015 Crops
  • U.S. Sugar Growers Make Case Against Mexican Imports
  • CoBank to Lead New Rural Investment Fund
  • USDA Names Research Foundation Board Members
  • Life is a Highway Full of Bumps and Detours
  • AFBF not Impressed by EPA Reaction to Ag Concerns
  • Bumper Crop 2014 Crop Would Put ARC in Spotlight
  • House Continues to Wrestle with Waters of the United States