Congress would make some tax incentives, such as Section 179 business expensing, permanent as part of the omnibus government funding bill while other tax incentives will be revived for a limited number of years. Farm groups say Section 179 and bonus depreciation, extended through 2019, free up cash flow and encourage investment. Along with making Section 179 permanent, the funding bill would adopt the higher thresholds that were enacted as part of the economic stimulus package.Up to $500,000 can be taken as an expense on purchases of up to $2 million.
The $1 per gallon biodiesel tax credit would be extended through 2016 along with the small agri-biodiesel producer tax credit. Also extended through 2016 would be a producer tax credit for cellulosic biofuels.