AGRIBUSINESS: Separate Tax Tracks, Expired Deductions
Tax legislation is on two very different paths in the House and Senate. American Farm Bureau tax adviser Pat Wolff says that could mean no progress before this year’s elections.
Wolff says the House Finance Committee is currently looking at provisions set to expire, called tax extenders; while the House Ways and Means Committee is set to look at tax reform first. The risk is that the two chambers never meet in the middle, and make no progress before elections.
One of American Farm Bureau’s big concerns is section 179 of the tax code: small business expensing. That allows tax deductions on equipment in the same year they’re purchased.
The amount was $500,000, but on January 1st, the American Taxpayer Relief Act of 2012 expired and the deduction amount fell to just $25,000, well below the cost of a single piece of farm machinery.
House Ways and Means Chair Dave Camp plans to announce his tax proposals this week.