Depreciation improvements in House tax bill good for farmers

Lawmakers say the recently passed tax relief package will benefit farmers and ranchers.

Ioway Republican Randy Feenstra spoke in favor of the Tax Relief for American Families and Workers Act during floor debate this week.

“Our farmers will benefit from two key provisions in this bill,” he says. “One hundred percent bonus depreciation and the expansion of Section 179 deduction limit. Our producers rely on these tools to buy farm equipment and invest in their operations.”

House Ways and Means Committee Chair Jason Smith, a fourth-generation farmer from Missouri, is the bill sponsor.

“The legislation locks in $600 billion in pro-growth tax policies by restoring three key provisions from President Trump’s successful 2017 tax reform,” he says.

The bill also enhances the Child Tax Credit and expands research and development expensing which Smith says should bring $70 billion in new investments.

Ahead of the vote, Republican Senator Chuck Grassley of Iowa told reporters he was concerned the bill’s passage would benefit Biden’s efforts for re-election.

American Farm Bureau Federation is urging the Senate to act quickly on the bill.  President Zippy Duvall says the legislation will bring meaningful tax relief to farmers and ranchers at a time of high-interest rates and slim margins.

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