Ag groups urge congress to act on tax extenders
A number of agricultural groups including the National Cattlemen’s Beef Association and the Public Lands Council, sent a letter to House and Senate leadership on Nov. 18, urging both houses to act on expired tax policies before the end of the year. NCBA President and Victoria, Texas cattleman, Bob McCan says this is a vital issue not just for agriculture, but for all businesses.
“Producers rely on a stable and predictable tax code in order to plan purchases, make investments and grow their business,” said McCan. “We are already at the eleventh hour for tax planning, and it is incredibly important that Congress pass these extenders as quickly as possible.”
Specifically, the letter asked Congress to focus on Section 179 small business expensing and bonus depreciation. These provisions allow businesses to maximize investments in years where they have positive cash flow, by taking a greater depreciation amount upfront rather than follow the standard schedule. Set at $500,000 in 2013, the maximum amount a small business can currently deduct under Section 179 is $25,000.
“Agriculture relies heavily on large investments in machinery, equipment and other depreciable assets,” said McCan. “And these tax provisions encourage cattlemen and women to make purchases and invest in expansion of their business, in turn investing in the expansion of rural America.”