National Farmers Union (NFU) President Roger Johnson today called on the U.S. House of Representatives Committee on Ways and Means to advance a multiyear tax extenders package similar to the one passed by the U.S. Senate Finance Committee in July.
“Agricultural producers are facing a myriad of challenges as commodity prices plummet and demand has slumped over the last year,” said Johnson in a letter to Ways and Means Committee Chairman Paul Ryan, R-Wisconsin, and Ranking Member Sander Levin, D-Michigan. “In this particularly difficult period, our members require a predictable tax structure. NFU encourages the advancement of a multiyear tax extenders package well in advance of the end of 2015.”
Johnson noted that over the last several years, Congress has approached the extension of valuable tax credits in an unpredictable way that has been unfriendly for family farmers and rural residents.
The last minute extensions, some of which were retrospective in nature, left producers scrambling to make purchases during the last few weeks of a calendar year. There was very little confidence that Congress would extend the credits until they were actually passed. As a result, long-term planning has been severely impaired.
Johnson pointed out NFU support for a number of tax credits in the package that directly benefit producers and the rural economy:
- Charitable contributions of real property for the purpose of conservation.
- Extension of bonus depreciation.
- Charitable deduction for contributions of food inventory.
- Extension of increased expensing limitations and treatment of certain real property as section 179 property.
- Extension of the Renewable Electricity Production Credit.
- All extensions that benefit the renewable fuel sector at both the production and consumption levels.
- Deductions for energy efficiency upgrades made to buildings.
“We recognize the difficulties you face as you work to ensure that these valuable business tools remain in place,” said Johnson. “Cost, politics, and a challenging economic environment only compound the challenge. NFU urges your committee to retain these credits in any final package, while at the same time allowing for the periodic review of these credits. We thank you for your attention in this matter and for the support you provide to family farmers and ranchers and residents of rural America.”
National Farmers Union has been working since 1902 to protect and enhance the economic well-being and quality of life for family farmers, ranchers and rural communities through advocating grassroots-driven policy positions adopted by its membership.