The Latest on Federal Budget Reconciliation
Both the House Ways and Means Committee and the US House Agriculture Committee are actively engaged in marking up their respective portions of the budget reconciliation legislation under HR14. The Ways and Means Committee began its markup session Wednesday. The committee has released text of the tax provisions, which aim to extend and make permanent several elements of the 2017 Tax Cuts and Jobs Act.
Impact on Tax in Agriculture
Impact on Tax in Agriculture
The reconciliation bill under consideration includes significant tax reforms and agricultural investments:
Tax Provisions:
- Making the 2017 individual tax cuts permanent.
- Enhancing the Section 199A deduction for pass-through entities.
- Providing estate tax relief to ease generational transfers of family farms.
- Maintaining Section 179 expensing to allow immediate deduction of capital investments.
- Extending the 45Z credit to promote renewable energy solutions in agriculture.
Agricultural Investments:
- Strengthening the farm safety net through improved crop insurance.
- Investing in conservation initiatives to enhance sustainability.
- Supporting trade programs to expand market access for U.S. agricultural products.
- Enhancing biosecurity measures to protect the agricultural sector.
- Providing resources for specialty crop producers and agricultural research to drive innovation.