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199A ‘fix’ is attached to budget bill

U.S. lawmakers have reportedly reached a last-minute deal to include a fix to the Section 199A tax deduction in the omnibus budget bill.

The provision will fix a mistake in the tax reform law that gave farmers an incentive to sell to co-ops rather than non-co-ops.

Resolving the issue proved to be a struggle. The last hurdle came when Senate Democrats demanded expansion of a low-income housing tax credit in the omnibus bill in exchange for the 199A fix, a deal that Republican leadership finally agreed to.

A vote on the bill is expected later this week.