House Advances Tax Bill with Bonus Depreciation for Farm Equipment

A big tax break for farm and other equipment is part of a $78 billion bipartisan, bicameral tax package the House passed late Wednesday despite some opposition on both sides.

The tax bill is set to fully restore a major tax break for farm and other equipment included in the 2017 tax law.

House Ways and Means Committee Chair Jason Smith told CNBC recently, bonus depreciation would phase down without the legislation. Smith said, “It was 80 percent last year, it’s 60 percent this year, it’ll go to 40 percent next year. We’re making it at a hundred percent, once again.”

Allowing for full and immediate expensing for farm and other equipment, spurring local farm implement sales, jobs, and increased farm productivity.

And Smith told his Ways and Means Committee, the bill also provides relief from another big expense farm and other businesses face. Smith said, “We also saw how small businesses benefited from interest deductibility. Companies increased their investment by 17 percent and reduced their levels of debt. Right now, small, and mid-sized businesses are getting hammered by interest rates that are the highest in 23 years.”

Smith says restoring interest expensing will create more than 850,000 jobs and 58 billion in additional take-home pay for workers. Plus, the bill that still needs Senate ok, includes tax relief for communities upended by hurricanes, floods, wildfires and other natural or manmade disasters. Smith negotiated the sweeping bicameral measure with his Senate counterpart, Finance Chair Ron Wyden of Oregon.

Story courtesy of NAFB News Service