A “top priority” for action in the post-election session of Congress is reauthorization of tax incentives that expired on Jan 1, said Iowa Sen Chuck Grassley. The so-called tax extenders package includes the biodiesel tax credit and the Section 179 provision that allows a deduction of up to $500,000 on farm equipment and other business equipment. The deduction shrank to $25,000 with the expiration of the incentive.
Grassley told reporters that the chairmen of tax-writing committees of the House and Senate were trying to agree on language for an extenders bill. The Senate Finance Committee has proposed a two-year extension, retroactive to the start of this year.
The two largest U.S. farm groups have called for renewal of the incentives for agriculture. “Congress needs to act sooner rather than later to extend these provisions in the lame-duck session,” said Grassley. He said the session could run into late December.