Source: NATIONAL ASSOC. OF STATE DEPTS. OF AGRICULTURE, 2/10/15

We are working with Congress and the Agricultural Tax Coalition to support passage of America’s Small Business Tax Relief Act of 2015 (H.R. 636), which will permanently extend Section 179 small business expensing with a maximum deduction of $500,000 reduced dollar for dollar when expenditures exceed $2 million.

Last December, the 113th Congress passed a tax extender bill (H.R. 5771) retroactively extending a number of expired tax provisions for 2014, including Section 179 and Bonus Depreciation; however, these tax extenders expired on December 31, 2014. The current maximum deduction is $25,000 reduced dollar for dollar when purchases exceed $200,000.

Consistency in the tax code and compatible Section 179 levels are critical to farming and ranching operations (small businesses) by allowing farmers and ranchers to expense capital expenditures in the year purchases are made, encourage reinvestment in their operations, and remove the unintended tax policy of incentivizing the breakup of multi-generational farming and ranching operations.