Kansas Farm Bureau thanked the U.S. House and U.S. Senate today for passage of the Tax Increase Prevention Act. While a multi-year bill would be preferable, the extension of tax provisions contained in the legislation are critical to farm and ranch businesses as they engage in year-end planning and file their 2014 taxes.
“A Farm Bureau priority is a tax provision that gives farmers and ranchers the ability to deduct expenses immediately instead of having to depreciate them over time,” Kansas Farm Bureau President Rich Felts said. “This allows improved cash flow and a better way to match income and expenses. And continuing the $500,000 Section 179 small business expensing limit is especially important to farm and ranch businesses because of the magnitude of equipment purchases.”
Felts also said bonus depreciation gives businesses a way to write off additional expenses, and the extension of renewable fuel and power tax incentives is needed to boost renewable technologies and support development of the market infrastructure.
The measure includes extension of tax provisions that encourage donations of conservation easements, promotes donations of food to food banks, helps short-line railroads maintain their tracks, allows a deduction for state and local taxes and tuition-related expenses.
House members Rep. Lynn Jenkins and Rep. Kevin Yoder voted favorably for the measure, as did Sens. Pat Roberts and Jerry Moran. KFB applauds these members for their support of the bill.
Kansas Farm Bureau urged President Obama to sign the legislation immediately, saying failure to do so will result in a tax increase for our nation’s farm and ranch businesses. In addition, the organization urges revisiting these measures early next year so that agricultural producers will have the certainty they need to make long-term business decisions that will grow and expand their operations.