News

House and Senate reconciliation bills differ on 199A deduction

The House and Senate Reconciliation packages differ on a tax deduction important to farmers.

U.S. Senator Chuck Grassley says while the House proposal raises the Section 199A deduction for qualified business income to 23 percent, the Senate would make the deduction permanent but remain at 20 percent.

“Well remember, the 23 percent was sunsetting. And we feel that it benefits small business to have it permanent at 20 percent, so it’s a tradeoff.”

The Iowa Republican tells Brownfield he believes permanency is more beneficial to the long-term success of farms and small businesses.

“We think that to have a pro-growth bill, the certainty of the law well into the future is better for the economy than sunsetting things.”

Farms operating as a pass-through entity are eligible for the Section 199A deduction.