For the most part, cattle producers are well treated in the House tax reform package
The U.S. House of Representatives Thursday afternoon passed, by a vote of 227 to 205, a tax reform package that drew generally high marks for how it treats agriculture.
According to Danielle Beck, NCBA director of government affairs in Washington, D.C., the House tax reform bill immediately doubles the exemption limits on the death tax. “Then, in 2025, the death tax would be permanently repealed. That’s excellent news. We’re thrilled that House members maintained their long-standing commitment to the livestock and agricultural industries and they’re going to get rid of the death tax once and for all,” she says.
READ: Two sides to the death tax discussion
Along with death tax repeal, the House continued to preserve the step-up in basis that benefits agricultural producers.” In addition, the House would allow for full and immediate expensing after September 2017 but before January 2023. So all purchases, you’d receive 100% bonus depreciation right off the bat and that’s excellent news.”
What’s more, the House bill increases the small business expensing cap under Section 179 from $500,000 to $5 million and it lifts the dollar for dollar phase out that exists at $2 million right now to $20 million. That would also be effective for tax years starting in 2017 going through 2023.