On Friday, Congress passed Protecting Americans from Tax Hikes (PATH), a bill that includes two important provisions affecting farmers. The bill will permanently cap small business deductions for capital expenses at $500,000, up from the previous limit of $25,000.
The PATH Bill also extends the existing bonus depreciation for the purchase of new capital assets for another 5 years at 50 percent for 2015-2017, 40 percent in 2018 and 30 percent in 2019. NCGA has advocated for these two tax provisions for years and applauds Congress for these important changes to the tax code and support for America’s farmers.
“These tax provisions allow farmers to reinvest in their operations – and that has a ripple effect across the entire agriculture industry and rural communities,” said NCGA President Chip Bowling.
Bowling urged Congress to continue pressing ahead in 2016.
“When Congress returns to Washington next January, we hope they will roll up their sleeves and tackle important issues for agriculture,” said Bowling. “Let’s all renew our commitment to working together and finding common ground as we advance the national agenda.”