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Farm Groups Urge House Passage of Permanent Expensing

FEB. 10, 2015

Farm Groups Urge House Passage of Permanent Expensing

DATED FEB. 10, 2015
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Agricultural & Food Transporters Conference
    Agricultural Retailers Association
    American Farm Bureau Federation
    American Mushroom Institute
    American Sheep Industry Association
    American Soybean Association
    American Sugarbeet Growers Association
    American Veterinary Medical Association
    Association of Equipment Manufacturers
    National Association of State Departments of Agriculture
    National Association of Wheat Growers
    National Barley Growers Association
    National Cattlemen's Beef Association
    National Corn Growers Association
    National Cotton Council
    National Council of Farmer Cooperatives
    National Milk Producers Federation
    National Peach Council
    National Pork Producers Council
    National Potato Council
    National Renderers Association
    National Sorghum Producers
    National Sunflower Association
    National Turkey Federation
    Professional Rodeo Cowboys Association
    Public Lands Council
    United Egg Producers
    United Fresh Produce Association
    US Apple Association
    US Canola Association
    US Dry Bean Council
    USA Dry Pea & Lentil Council
    USA Rice Federation
    Western Growers Association
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2015-3382
  • Tax Analysts Electronic Citation
    2015 TNT 28-25

 

February 10, 2015

 

 

The Honorable John Boehner

 

Speaker

 

U.S. House of Representatives

 

H-232, U.S. Capitol

 

Washington, DC 20515

 

 

The Honorable Nancy Pelosi

 

Minority Leader

 

U.S. House of Representatives

 

H-204, U.S. Capitol

 

Washington, DC 20515

 

 

Dear Speaker Boehner and Minority Leader Pelosi:

 

 

We commend the efforts of the U.S. House of Representatives in your thoughtful approach to provide greater certainty to tax code provisions that are very important to farmers and ranchers. We offer our support and common sense advice as to why it is important for Congress to make permanent Section 179 small business expensing.

As you probably know, agriculture requires large investments in machinery, equipment and other depreciable assets and because of this farmers and ranchers place great value on tax code provisions such as Section 179 small business expensing. Section 179 allows them to write off capital expenditures in the year that purchases are made rather than depreciate them over time.

The ability to immediately expense capital purchases also provides an incentive for farmers and ranchers to invest in their businesses and offers the benefit of reducing the record keeping burden associated with the depreciation.

Section 179 small business expensing provides agricultural producers with a way to maximize business purchases in years when they have positive cash flow. Under the expired law the maximum amount that a small business can immediately expense when purchasing business assets instead of depreciating them over time is $25,000 adjusted for inflation. We strongly encourage you to restore the maximum amount of expensing under Section 179 to $500,000 as it was previously set for 2014. We are concerned that the failure to make permanent Section 179 expensing will place additional burdens on farm and ranch families who are asset-rich and cash-poor and already face an unpredictable tax code that encourages the breakup of multi-generational farm and ranch operations.

As farm and ranch organizations representing small businesses, we encourage the U.S. House of Representatives to approve legislation that makes permanent Section 179 of the tax code. Thank you for your consideration.

Sincerely,

 

 

Agricultural & Food Transporters

 

Conference

 

 

Agricultural Retailers Association

 

 

American Farm Bureau Federation

 

 

American Mushroom Institute

 

 

American Sheep Industry

 

Association

 

 

American Soybean Association

 

 

American Sugarbeet Growers

 

Association

 

 

American Veterinary Medical

 

Association

 

 

Association of Equipment

 

Manufacturers

 

 

National Association of State

 

Departments of Agriculture

 

 

National Association of Wheat

 

Growers

 

 

National Barley Growers

 

Association

 

 

National Cattlemen's Beef

 

Association

 

 

National Corn Growers Association

 

 

National Cotton Council

 

 

National Council of Farmer

 

Cooperatives

 

 

National Milk Producers Federation

 

 

National Peach Council

 

 

National Pork Producers Council

 

 

National Potato Council

 

 

National Renderers Association

 

 

National Sorghum Producers

 

 

National Sunflower Association

 

 

National Turkey Federation

 

 

Professional Rodeo Cowboys

 

Association

 

 

Public Lands Council

 

 

United Egg Producers

 

 

United Fresh Produce Association

 

 

US Apple Association

 

 

US Canola Association

 

 

US Dry Bean Council

 

 

USA Dry Pea & Lentil Council

 

 

USA Rice Federation

 

 

Western Growers Association

 

Cc:

 

Honorable Paul Ryan,

 

Chairman,

 

U.S. House Committee on Ways and Means

 

 

Honorable Sander Levin,

 

Ranking Member,

 

U.S. House Committee on Ways and Means
DOCUMENT ATTRIBUTES
  • Institutional Authors
    Agricultural & Food Transporters Conference
    Agricultural Retailers Association
    American Farm Bureau Federation
    American Mushroom Institute
    American Sheep Industry Association
    American Soybean Association
    American Sugarbeet Growers Association
    American Veterinary Medical Association
    Association of Equipment Manufacturers
    National Association of State Departments of Agriculture
    National Association of Wheat Growers
    National Barley Growers Association
    National Cattlemen's Beef Association
    National Corn Growers Association
    National Cotton Council
    National Council of Farmer Cooperatives
    National Milk Producers Federation
    National Peach Council
    National Pork Producers Council
    National Potato Council
    National Renderers Association
    National Sorghum Producers
    National Sunflower Association
    National Turkey Federation
    Professional Rodeo Cowboys Association
    Public Lands Council
    United Egg Producers
    United Fresh Produce Association
    US Apple Association
    US Canola Association
    US Dry Bean Council
    USA Dry Pea & Lentil Council
    USA Rice Federation
    Western Growers Association
  • Code Sections
  • Subject Area/Tax Topics
  • Jurisdictions
  • Language
    English
  • Tax Analysts Document Number
    Doc 2015-3382
  • Tax Analysts Electronic Citation
    2015 TNT 28-25
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