To amend the Internal Revenue Code of 1986 to allow an increased dollar limitation for section 179 property placed in service in the trade or business of farming.
Impact
The proposed changes to section 179 are expected to directly enhance the financial health of farming operations. By allowing a substantial increase in deductible property costs, farmers may find it easier to invest in new equipment and technology, which could lead to increased productivity and efficiency in agricultural practices. Furthermore, the bill could potentially attract younger farmers and encourage more sustainable farming practices as they can invest more significantly with the financial relief provided by these tax deductions.
Summary
House Bill 9761 seeks to amend the Internal Revenue Code of 1986 by increasing the dollar limitation for section 179 property utilized in the trade or business of farming. This amendment proposes that farmers can deduct up to $1,500,000 for qualifying property placed in service, which is a significant increase from prior limitations. The bill aims to provide greater financial flexibility to farmers by allowing them to deduct larger amounts for investments in necessary property, thus stimulating growth within the agriculture sector.
Contention
While this bill may offer benefits to the farming community, there could be concerns regarding the overall impact on federal revenues, as increased deductions may reduce tax income. Some lawmakers might argue that such incentives should be more targeted rather than broad-based, ensuring that the benefits primarily assist small-scale and struggling farmers. Moreover, there could be debates about the effectiveness of tax deductions as a means of stimulating growth in the agricultural sector versus direct subsidies or other forms of financial assistance.
To amend the Internal Revenue Code of 1986 to permit qualified business trade expenses to be treated as qualified higher education expenses for purposes of 529 accounts.
To amend the Internal Revenue Code of 1986 to provide for special rules allowing taxpayers to deduct qualified passenger vehicle loan interest paid or accrued during the taxable year on certain indebtedness, and for other purposes.
To amend the Internal Revenue Code of 1986 to protect small businesses from unemployment insurance premium increases by reason of unrepaid State advances.
To amend the Internal Revenue Code of 1986 to allow a credit against income tax for qualified conservation contributions which include National Scenic Trails.
To amend the Internal Revenue Code of 1986 to provide a credit to small businesses for research activities related to the mitigation of certain drug threats.