The Senate Finance Committee has moved forward legislation seen as important to agriculture and other small businesses. Farm Bureau is praising committee passage of the measure to extend important tax provisions through 2016.

The legislation includes two provisions that let small businesses deduct major capital expenditures over just a few years, rather than the full life of the equipment they buy. Known as Section 179 small-business expensing and bonus depreciation, these measures have already boosted the economy and increased cash flow for farmers and ranchers. Extending the provisions now is critical and an important step toward making them a permanent part of tax law. In a business marked by uncertainty, farmers and ranchers need a tax code that allows them to plan ahead and invest in the future of their businesses. The bill also includes language to promote the production and use of renewable energy, as well as incentives for charitable donations and higher education.

“Section 179 and bonus depreciation lend stability and help minimize risk in an unpredictable industry,” AFBF President Bob Stallman said. “Farmers and ranchers rely on tax provisions that allow them to manage their cash flow and put their money back to work for their businesses and local economies.”

Due to large investments in machinery and equipment, farmers and ranchers are especially dependent on tax provisions that allow them to write off these business expenses in the year purchases are made. Farm Bureau also called on Congress to make these provisions permanent.