House Votes to Permanently Extend Tax Write Off for Capital Purchases
March 9, 2015
Legislation permanently extending the ability of family farmers and small businesses to write off capital purchases immediately, instead of over time, faces an uncertain future despite overwhelming approval in the House of Representatives in mid-February. H.R. 636 faces a rocky road in the Senate and a possible veto at the White House.
A permanent extension of the tax code’s Section 179 is one of NMPF’s legislative priorities for 2015. The provision is widely used by farmers to buy tractors and other farm equipment. In December, President Obama signed legislation extending Section 179, along with more than 50 other expired tax provisions, but for 2014 only.
“Dairy farming requires significant investments in machinery and equipment,” said NMPF President & CEO Jim Mulhern. “By allowing producers to immediately write off these purchases, Section 179 gives them an incentive to invest in their businesses while it reduces their record-keeping burden.
“Failure to permanently restore Section 179 will add to the financial strains on family farmers who already find it difficult to pass on their farms to the next generation,” Mulhern said.
Early in February, NMPF joined 33 other agricultural organizations in urging the House to approve a permanent extension of the tax credit, which passed 272 to 142.
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