Some 525 trade and business groups, including farm groups, urged Congress to revive four dozen tax breaks that expired on Jan 1, the so-called “tax extenders” package. In a letter, the groups said the tax incentives should be restored as soon as possible. “We urge all members of Congress to work together to extend seamlessly, enhance, or make permanent these important tax provisions this year to provide a necessary bridge to comprehensive tax reform,” said the groups.
Key for many of the groups is Section 179 business expensing provision, now a maximum of $25,000 vs the previous $500,000. With uncertainty whether the larger deduction will be reinstated, “this freezes out investment,” said Matthew Turkstra of the National Federation of Independent Businesses. The American Farm Bureau Federation said Section 179 and a bonus depreciation provision “are important tools.”
“I need that (Section 179) to be retroactive,” said Mike Friemel, of Friemel Family Farms near Amarillo, Texas. “If not, I know I will not be making purchases in 2015.” Friemel said he purchased six tractors for his 15,000-acre corn, cotton, wheat and milo operation this year to replace outdated equipment. Section 179 “frees up cash for new investments,” he said during a telephone news conference.