Senate Finance approves tax bill with ag provisions, including Section 179
The Senate Finance Committee today approved a tax extenders bill that includes tax breaks for biofuels and other tax provisions important to agriculture, according to the Renewable Fuels Association and the American Farm Bureau Federation.
The bill contains a two-year extension of the Second Generation Biofuel Producer Tax Credit, the Special Depreciation Allowance for Second Generation Biofuel Plant Property, and the Alternative Fuel Mixture Excise Tax Credit, the RFA said.
“I commend the Senate Finance Committee’s leadership for recognizing how important these tax credits are for the continued growth and innovation of the U.S. biofuels industry,” RFA President Bob Dinneen said in a news release.
“Stability in the marketplace is crucial to encouraging development in second-generation biofuels, like cellulosic ethanol,” he said. “By extending these incentives, the committee has helped to provide that needed stability. We look forward to working with the Senate Finance Committee specifically and Congress generally on comprehensive tax reform.”
The legislation includes two provisions known as Section 179 – small-business expensing and bonus depreciation – that let small businesses deduct major capital expenditures over a few years, rather than the full life of the equipment they buy, the American Farm Bureau Federation noted in a news release.
“Section 179 and bonus depreciation lend stability and help minimize risk in an unpredictable industry,” Farm Bureau President Bob Stallman said. “Farmers and ranchers rely on tax provisions that allow them to manage their cash flow and put their money back to work for their businesses and local economies.”
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