Expiring Tax Provisions

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Our Position

The start of 2016 brought with it the extension of many tax provisions important to farmers and ranchers. But because they are still temporary, congressional action is needed to maintain these policies that improve the economic viability and stability of food, fiber and fuel production. Farm Bureau supports the extension of all the listed tax provisions.

Tax Provisions

Bonus Depreciation

  • The additional 50 percent bonus depreciation for the purchase of new capital assets, including agricultural equipment for 2016 and 2017. The amount is 40 percent for 2018 and 30 percent for 2019.

Health Insurance Tax (HIT)

  • The one-year (2017) moratorium of the HIT Tax on health insurance premiums of farmers, ranchers and other small businesses. 

Cellulosic Biofuel Producer Tax Credit

  • The $1.01 per gallon income tax credit for cellulosic biofuel available through 2016.

Biodiesel

  • The $1.00 per gallon biodiesel and renewable diesel tax credits for biodiesel and blending biodiesel available through 2016
  • The 10 cents per gallon Small Agri-Biodiesel Producer Credit available through 2016
  • The $1.00 per gallon biodiesel excise tax credit that can be taken against fuel taxes available through 2016

Alternative Fuel Vehicle Refueling Property 

  • The 30 percent investment tax credit for installing alternative vehicle refueling property available through 2016

Renewable Energy

  • The 2.3 cents per kilowatt hour Production Tax Credit for energy from close-loop biomass and the 1.2 cent credit per kilowatt hour for closed-loop biomass through 2016
  • The option of taking an investment tax credit in lieu of Production Tax Credit. The credit is 30 percent for 2016, 24 percent for 2017, 18 percent for 2018 and 12 percent for 2019
  • The investment tax credit for installation costs of facilities that produce electricity from wind. The credit is 30 percent for 2016, 24 percent for 2017, 18 percent for 2018 and 12 percent for 2019
  • The Distributed Wind Investment Tax Credit Small Wind Investment Tax Credit for electricity production facilities through 2016

 Other

  • Fifty Percent Railroad Track Maintenance Credit for Short Line Railroads available through 2016 
  • Deduction for tuition and fees for higher education available through 2016

Legislative Status

Farm Bureau supports H.R. 5240, the Biodiesel Tax Incentive Reform and Extension Act of 2016, introduced by Reps. Kristi Noem (At large-S.D.) and Bill Pascrell (D-N.J.). This legislation would extend the $1-per-gallon tax credit for biodiesel through the end of 2019 and change the credit from a blender’s credit to a producer’s credit for fuel using U.S. commodities.

Farm Bureau supports H.R. 5167, the Technologies for Energy Security Act introduced by Reps. Tom Reed (R-N.Y.), Mike Thompson (D-Calif.), Pat Meehan (R-Pa.) and Earl Blumenauer (D-Ore.). The bill would extend the 30 percent tax credit for small wind through 2019. The credit would then be 26 percent for 2020 and 22 percent for 2021. The bill also extends tax incentives for solar energy, fuel cells, microturbines and thermal energy. 

Farm Bureau supports S. 2595, the Building Rail Access for Customers and the Economy Act (BRACE Act), introduced by Sens. Mike Crapo (R-Idaho) and Ron Wyden (D-Ore.) and H.R. 4626, the Building Rail Access for Customers and the Economy Act (BRACE Act), introduced by Reps. Lynn Jenkins (R-Kan.), Earl Blumenauer (D-Ore.), Rodney Davis (R-Ill.) and Daniel Lipinski (D-Ill.). The bills would make permanent the 50 percent railroad track maintenance tax credit for short line and regional railroads.

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