The Senate tonight overwhelmingly gave final congressional approval to reinstating more than 50 expired tax breaks, including the Section 179 expensing allowance that some farmers had been waiting on before buying new tractors and other equipment.
The so-called tax-extenders bill, which now goes to President Obama for his signature, also would revive a bonus appreciation allowance along with a series of tax incentives for wind energy and biofuels, including the $1-a-gallon credit that subsidizes biodiesel.
The tax breaks will expire again Dec. 31, because lawmakers were unable to reach a deal with President Obama for a longer-term extension.The bill, approved 76-16, was one of the last items left on the agenda of the lame-duck Senate.
In a victory for agricultural shippers, the Senate also rolled into the legislation a barge fuel-tax increase that would help pay for improvements to waterways including locks and dams on the Mississippi River. The 9 cent per gallon tax increase is matched by general revenue and is expected to raise about $80 million a year.
Sen. John Hoeven, R-N.D., went to the floor this afternoon to read from letters constituents had sent him complaining about uncertainty created by the lapse in tax incentives, including the Section 179 allowance. “If we don’t act, taxes will go up on hardworking Americans, on small businesses across this country, on farmers, and so we need to act,” Hoeven said.
The Section 179 provision would keep the expensing limitation at $500,000 for this year, the level that has been effect since 2010. Without the extension it reverts to $25,000. The provision costs the government about $1.4 billion.
Dec. 16, 2014 Agri-Pulse