The House Ways and Means Committee passed legislation (H.R. 2510) that would make 50 percent bonus depreciation permanent and expand it to include fruit- and nut-bearing plants that have a pre-productive period of two years or more.
Because farming requires large investments in machinery, equipment and other depreciable capital, farmers and ranchers place great value on tax code provisions that allow them to write off capital expenditures in the year that purchases are made, American Farm Bureau Federation President Bob Stallman said in a Sept. 16 letter to committee members urging them to approve the bill.
“Tax provisions that accelerate expensing and depreciation allow farmers and ranchers to better manage cash flow, minimize tax liabilities and reduce borrowing,” Stallman wrote. “The ability to immediately expense capital purchases also offers the benefit of reducing the record keeping burden associated with depreciation.”
With committee passage, the bill is now ready for a vote on the House floor although no action has been scheduled.
The Senate Finance Committee in July passed a measure extending for two years a number of expired or expiring tax provisions, including bonus depreciation. Along with the time-frame difference (the House Ways and Means Committee legislation makes the provision permanent versus the Senate Finance Committee’s two-year extension), the House and Senate bills differ in that the Senate version does not include the addition of plants with pre-production periods of two years or more. – See more at: http://fbnews.fb.org/Templates/Article.aspx?id=39849#sthash.DNrIfFVS.dpuf
Disclaimer: Articles featured on Oregon Report are the creation, responsibility and opinion of the authoring individual or organization which is featured at the top of every article.