tax breaks

Farmers would face an increased federal tax liability of billions of dollars following the expiration of Trump-era tax breaks in 2025, said USDA economists. The biggest impact, estimated at a combined $4.5 billion, would come from reduced income tax rates on individuals, an increased standard deduction, a cap on the deduction for state and local taxes, and the elimination of the personal exemption.

Thirteen House Democrats representing farm districts asked party leaders on Thursday to exempt farmers from President Biden's proposal to apply the capital gains tax more stringently. Iowa Rep. Cindy Axne, one of the organizers of the letter, said "a significant number of Democrats" support the farmer exemption.

During his campaign for the White House, President Biden said he would eliminate "stepped-up basis," which allows heirs to avoid capital gains taxes, and he is expected to carry out the pledge this week to pay for an expansion of social programs. Farm groups say elimination of the tax break would impose a burden on agriculture.

Sens Chuck Grassley of Iowa and Maria Cantwell of Washington state proposed revival and extension of the $1-a-gallon biodiesel tax credit through 2018. "This provision should be included in the tax extenders package under discussion," Grassley said in a joint statement with Cantwell.

Lawmakers are "headed for another last-minute, end-of-the-year renewal" of five-dozen tax breaks that expired at the end of 2014, reports Agri-Pulse, which quotes House Majority Leader Kevin McCarthy as saying, "In these situations, it's always coming down to the last week to see what mix we're able to get."

Some 39 agribusiness groups, from growers to lenders, asked congressional leaders in a letter to revive two tax breaks for equipment purchases as part of a multi-year tax “extenders” package. The tax breaks, known as Section 179 and bonus depreciation, were among four-dozen tax incentives, …

Senate Majority Leader Mitch McConnell says he wants to enact a tax "extenders" bill in a timely way, but did not suggest a likely course of action during a news conference, reports Agri-Pulse.

The Senate Finance Committee approved, 23-3, a bill to retroactively revive four dozen tax breaks that expired at the end of 2014.

The $1 a gallon biodiesel tax credit would be revived along with other incentives for renewable energy in a Senate Finance Committee package of tax "extenders." The committee is scheduled to discuss, and probably vote on, the package on Tuesday.

The Senate passed, 76-16, and sent to President Obama a retroactive one-year revival of four dozen tax incentives that expired at the start of this year.

The so-called tax extenders package, to retroactively revive more than 50 tax breaks for 2014, may be one of the last items of business for the Senate this week.

The Senate is expected "in the coming days to restore more than 50 tax breaks, all of which expired at the end of 2013, just through the end of this year," including the Section 179 business expensing provision, says The Hill newspaper.

The House could vote as early as Wednesday on a one-year retroactive renewal of tax breaks that expired at the start of this year, says Politico. The four dozen incentives include the $1 a gallon biodiesel tax credit, a wind power credit and the $500,000 business deduction for new equipment.

Representatives passed, 378-46, and sent to the Senate a retroactive revival of five dozen tax breaks that expired on Jan 1, including a handful that apply to the agriculture sector.

The House Rules Committee cleared for a floor vote a bill to revive five dozen tax incentives that expired at the start of this year. The House is scheduled to vote today.

Revival of four dozen tax breaks, including incentives for the agricultural sector, is possible in the lame-duck session that opens next week, says the Washington Post.