Still a Chance for Tax Extenders
May 16, 2014
Pro Farmer Extra
- From the Editors of Pro Farmer newsletter -
May 16, 2014
Still a Chance for Tax Extenders Deal
Legislation that would extend nearly 55 expired tax breaks without offsets stalled after a procedural vote failed last week, prompting some to predict no Senate action until after the November midterm elections. However, we aren’t as pessimistic on the package that would renew for two years nearly all the tax breaks that expired Dec. 31, 2013, including the biodiesel tax incentive and equipment expensing.
Republicans balked at Senate Majority Leader Harry Reid’s (D-Nev.) pledge to work out an amendment deal, but only after the procedural vote. Pay-as-you-go budget rules were likely to surface with the bill’s lack of offsets, but Senate rule changes muted the potential for that to derail the bill. Of note, Senator John Thune (R-S.D.) says Republicans would be very interested in voting on making Section 179 expensing permanent, a provision that allows small businesses (including farmers) to get their entire depreciation deduction in one year.
After a “cooling-off period,” we expect an attempt will be made at a mini-amendment deal sometime this summer. The final end-zone, however, is still likely a post-election event.
Follow Pro Farmer Editorial Director Chip Flory on Twitter: @ChipFlory
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