Congress Passes Key Tax Extenders Legislation
WASHINGTON – Today, the U.S. Senate voted 76 to 16 to pass a tax extenders package that holds key provisions for small businesses such as section 179 expensing and bonus depreciation. The tax extenders package was previously approved in the U.S. House of Representatives and now heads to the White House for approval. National Cattlemen’s Beef Association President Bob McCan said this is great news for cattlemen and women.
“America’s cattle producers are primarily family-owned small businesses who need stability in the tax code in order to make sound business decisions,” said McCan, a cattleman from Victoria, Texas. “This tax extenders package encourages economic growth and provides greater certainty in the tax code.”
Kent Bacus, director of legislative affairs for NCBA, said the extension of Section 179, a provision that provides a higher deduction level for some capital expenditures, like machinery and equipment, and the extension of bonus depreciation are key for producers.
“Last year producers were able to expense up to $500,000 on capital investments, but this year that was lowered to $25,000,” said Bacus. “For large equipment purchases and other capital investments, cattle producers need certainty in order to properly plan for their business.”
Unfortunately, the retroactive extension means producers will be operating under an expired tax code in 2015, but it could add the needed pressure to complete a comprehensive tax reform deal in the New Year, said Bacus.