The U.S. House of Representatives is expected to vote soon on legislation that includes a number of tax provisions vital to farmers and rural America.
The American Farm Bureau Federation is urging the House to pass the “American Jobs and Closing Tax Loopholes Act.” In a letter sent to members of the House Monday, AFBF President Bob Stallman called for prompt passage of the bill to reinstate many tax provisions that expired at the end of 2009.
“This bill includes a number of tax provisions that many farmers and ranchers have turned to over the years to protect the bottom line,” says Stallman. “Among these are extension of tax incentives for biodiesel and renewable diesel, five-year depreciation for farming business machinery and equipment and a number of other tax deductions that farmers and ranchers rely on to manage cash flow.”
In his letter, Stallman pointed to biodiesel tax incentives as vital for the development and expansion of renewable energy in the U.S.
“Clean, renewable, domestic energy is helping achieve economic growth, create a cleaner environment and shield our economy from unreliable foreign energy sources. Farmers and ranchers are playing a bigger role in supplying our nation with the energy it needs through the production of agricultural-based renewable energy resources,” Stallman wrote.
Tax provisions that provide incentives to upgrade operations, donate food and preserve farmland are also key elements in the bill for rural America, according to Stallman.
“Most farmers and ranchers pay taxes as individuals which means that individual tax rates and deductions have a huge impact on the amount of after-tax income that they have,” Stallman wrote.
“Farm Bureau supports extension of the standard deduction for state and local real property taxes and the deduction of state and local sales taxes and other provisions that increase after-tax dollars for farm families.”
Source: American Farm Bureau Federation