Ag Policy Blog

Farm Groups Want Tax Extender Legislation in Lame Duck

Chris Clayton
By  Chris Clayton , DTN Ag Policy Editor
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Now that the election bloodbath is over, will Congress be able to cobble together a tax-extenders bill in a lame-duck session?

Farm groups are starting to raise the issue with several key tax provisions that expired at the beginning of 2014 still waiting to be acted upon.

The Senate Finance Committee took up the Expiring Provisions Improvement Reform And Efficiency Act, or EXPIRE Act, last spring.

A big one is the Section 179 deduction. It's still in place for 2014, but the deduction right now is capped at $25,000, compared to $500,000 in 2013. EXPIRE would raise the Section 179 deductions for 2014 and 2015 back to a $500,000 maximum and be allowed for any business with less than $2 million in property put into service. The deduction phases out dollar for dollar for all equipment value purchased above $2 million.

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The Senate bill also would extend 50% bonus depreciation for until January 2016.

Jerry Hagstrom, DTN's political correspondent, reported that tax-extenders was an important issue raised by American Farm Bureau Federation President Bob Stallman in a meeting with Washington, D.C., reporters on Tuesday.

"Stallman said the most important of the breaks are the Section 179 small business expenses and bonus depreciation, but Farm Bureau released a long list of other tax breaks that would be contained in a bill that members of Congress refer to as tax extenders, since these measures have been in law before but have expired," Hagstrom wrote.

The National Farmers Union also issued a news release on Wednesday calling on Congress to renew and extend tax breaks during the lame-duck session.

"NFU will strongly pursue the extension of expiring tax provisions for small business expensing and renewable energy during the upcoming lame-duck session of congress,” said NFU President Roger Johnson. “Family farmers and ranchers rely on these provisions that are critical to managing their business.”

On Tuesday, IRS Commissioner John Koskinen urged Congress to not only approve tax-extenders legislation, but do it immediately so his agency and tax preparers have time to get ready for the 2015 filing season.

The EXPIRE bill did not extend the wind Production Tax Credit, but it did include provisions for biofuels, including an extension of the $1.01 per gallon Cellulosic Biofuels Producer Tax Credit through 2015. It also would extend the $1 a gallon Biodiesel tax credit as well as the 10-cent a gallon agri-biodiesel producer tax credit.

Total package of cuts under EXPIRE would cost an average of $85 billion over 10 years.

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Comments

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CRAIG MOORE
11/10/2014 | 12:06 PM CST
The "new" congress doesn't meet until January so we will have to wait until then to see what is going to happen, Democrats still control the Senate. How can the "new" congress be charged with ANYTHING until they are even sworn in. And you have to remember it was your first elected half-black, mom was all white, that thought it was a good idea to slow the constant increase of health care by putting a tax on medical equipment purchases. Yep, we gonna slow cost increases by putting additional costs on doing business. Can't fix stupid.
Don Thompson
11/9/2014 | 3:52 PM CST
Craig Moore, Wait till they are in office before ragging??? What?? That went out with - well - electing the first black POTUS. Mitch McConnell himself opened that can of worms. Any Dem worth his salt should be demanding the new "R" Congress be indicted for crimes unbecoming first thing Monday!! Fair treatment begets fair treatment. Bring it on.
Bonnie Dukowitz
11/8/2014 | 5:20 PM CST
Plans Jay? The chair needs to hear them and allow them to be presented before you can see them. Maybe now the Senate will actually legislate.
CRAIG MOORE
11/7/2014 | 8:23 AM CST
Hey Jay, let's wait until the new guys actually get into office before ragging on them.
Jay Mcginnis
11/7/2014 | 7:25 AM CST
What plans? All I've seen are law suits against the president. Lets see actual bills, but first who is the Senate majority leader, Ted Cruz or Mitch, they will probably take 2 years to decide that one!
CHRIS CLAYTON
11/6/2014 | 4:29 PM CST
Well, the GOP has an opportunity here to do some things. I was disappointed to see the House Majority Leader put out a couple of bills dealing largely with EPA and transparency for the first week of the lame duck. Again, the sooner they deal with tax extenders, the sooner everybody understands their tax situation. I think we will all be curious to see if they have a serious agenda in January. Do they deal with trade or immigration? If not, then we have to wait until at least 2017. China isn't waiting to cut trade deals. But I assure you that it will be fun.
W Lee Deutsche
11/6/2014 | 1:39 PM CST
Chris' WHAT'S YOUR FEEDBACK THAT REPUBLICANS LARGEST MAJORITY SINCE PRESIDENT TRUMAN IN HOUSE of REPRESENTATIVES?