The House of Representatives could consider H.R. 8 "The Job Protection and Recession Prevention Act of 2012" as early as 1:00 p.m. CST. H.R. 8 was proposed by House Republicans and will extend current estate tax relief for one more year, allowing farmers and ranchers a $5/35% exemption. The passed Senate bill does not address the extension of the exemption.Watch live from the House floor.
In 2010, Congress approved changes in the federal estate tax that set the 2012 rate at 35% with a $5.12 million exemption. But those changes expire at the end of this year and farmers will face a
$1 million estate and gift tax exemption and increased tax rates of 55% (and up to 60% for estates valued at more than $10 million) unless Congress approves new legislation.
Given the rapid increases in farmland values in recent years and periods of higher commodity prices, many farm families could easily exceed the lower limits and be forced to sell a portion of their assets just to pay their tax bill.
"Right now, we are waiting to see what Congress is going to do with the estate tax. Since we’re in an election year, the decision could come out after the election," says Gary Hoff, a University of Illinois Extension taxation specialist.
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NCBA is encouraging producers to contact their House representative, explaining the importance of this extension. Click here to contact your lawmaker.