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House Votes to Make Key Tax Provisions Permanent

News / FBNews October 1, 2018

The House last week passed a Farm Bureau-supported bill that would make permanent several important tax reform provisions that are set to expire after 2025. The Protecting Family and Small Business Tax Cuts Act of 2018 (H.R. 6760) addresses bonus depreciation and the estate tax, among other tax provisions.

The Tax Cuts and Jobs Act, passed in 2017, reduced taxes for all businesses, but only the tax cuts for incorporated businesses operated as C corporations are permanent. The vast majority of farms and ranches, however, file their taxes as sole-proprietors, partnerships or S corporations.

“Failure to [make these provisions permanent] will result in a huge tax increase. In addition, the uncertainty caused by temporary tax provisions makes the already tough business of running a farm or ranch even harder,” American Farm Bureau Federation President Zippy Duvall wrote in a letter urging House members to support the bill.

The legislation makes permanent the following provisions that are particularly important to farm and ranch businesses:

  • Reduced pass-through tax rates and expanded brackets
  • The Section 199A new 20 percent business income deduction
  • Unlimited bonus depreciation (expensing)
  • The doubled estate tax exemption ($11 million person/$22 million couple)
  • The increased alternative minimum tax threshold for individuals

The Protecting Family and Small Business Tax Cuts Act of 2018 was passed as part of a three-bill package dubbed “Tax Reform 2.0” by the House Ways and Means Committee. The other two bills, also approved by the House last week, are the Family Savings Act of 2018 (H.R. 6757) and the American Innovation Act of 2018 (H.R. 6756).

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Credit: AFBF 

The American Farm Bureau Federation this week announced the keynote speakers for the upcoming Annual Convention. Micheal Clements shares more on what to expect come January.

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General session keynote speakers slated for the 2022 American Farm Bureau Convention are sure to inspire and entertain attendees. Inspirational speaker Jim “Murph” Murphy, founder and chairman of Afterburner, will speak during the afternoon general session at the convention on Sunday, Jan. 9, in Atlanta, Georgia. Comedian Jeff Allen will perform on Monday, Jan. 10, during the convention’s closing general session.

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