- freeimages.com/sandraliseThe U.S. Senate has approved a package of tax breaks, including a deduction on farm machinery.
The U.S. Senate, on December 16, voted to approve HR 5771, a $42 billion package of tax breaks, including the Section 179 deduction on business equipment and farm machinery.
However, the bill expires at year-end, but farmers can take advantage of the deductions on purchases made in 2014 if delivery is taken before year-end. The bill is retroactive through all of 2014 for purchases made until December 31.
The bill now goes to the White House, where President Barack Obama is expected to sign it within days.
“Today’s passage of the tax extenders bill is a welcome relief to farmers as we close our books on 2014," said Wade Cowan, president of the American Soybean Association. "While it's not the long-term fix we need, the legislation does include the dollar-per-gallon biodiesel tax credit, expensing for farm equipment and infrastructure under Section 179, and bonus depreciation on farm assets, all of which provide greater certainty and a more stable climate for the farmers and producers who make use of these programs.”
The passage of Section 179 is expected to push farmers and livestock producers who were undecided about buying new equipment in 2014 to go ahead with the purchases. Farmers looking to take advantage of the deduction are urged to apply for the financing immediately to make the year-end deadline.