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.

10/7/2024, 9:48 PM

This bill increases the limitation on the deduction for business expenses related to depreciable assets under Internal Revenue Code §179 (expense deduction) for qualified property placed into service by a taxpayer in the trade or business of farming (qualified farming property). The expense deduction limit is increased for qualified farming property to $1,500,000 from $1,250,000 (in 2025) and is adjusted for inflation for tax years beginning after 2025.

Bill 118 hr 9761, also known as the "Section 179 for Farmers Act," aims to amend the Internal Revenue Code of 1986 to provide a higher dollar limitation for section 179 property that is used in the trade or business of farming.

Currently, section 179 of the Internal Revenue Code allows businesses to deduct the cost of certain property, such as equipment and machinery, in the year it is placed in service rather than depreciating it over time. This deduction is subject to a dollar limitation, which is currently set at $1,050,000 for the 2021 tax year.

The proposed bill seeks to increase this dollar limitation specifically for farmers, recognizing the unique needs and challenges faced by those in the agricultural industry. By allowing farmers to deduct a higher amount of section 179 property, they will be able to invest in new equipment and technology to improve their operations and remain competitive in the market. Overall, the Section 179 for Farmers Act aims to support and incentivize the growth and success of the farming industry by providing tax relief to farmers who invest in their businesses.
Congress
118
Number
HR - 9761
Introduced on
2024-09-23
# Amendments
0
Sponsors
+5

Variations and Revisions

9/23/2024
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

This bill increases the limitation on the deduction for business expenses related to depreciable assets under Internal Revenue Code §179 (expense deduction) for qualified property placed into service by a taxpayer in the trade or business of farming (qualified farming property). The expense deduction limit is increased for qualified farming property to $1,500,000 from $1,250,000 (in 2025) and is adjusted for inflation for tax years beginning after 2025.

Bill 118 hr 9761, also known as the "Section 179 for Farmers Act," aims to amend the Internal Revenue Code of 1986 to provide a higher dollar limitation for section 179 property that is used in the trade or business of farming.

Currently, section 179 of the Internal Revenue Code allows businesses to deduct the cost of certain property, such as equipment and machinery, in the year it is placed in service rather than depreciating it over time. This deduction is subject to a dollar limitation, which is currently set at $1,050,000 for the 2021 tax year.

The proposed bill seeks to increase this dollar limitation specifically for farmers, recognizing the unique needs and challenges faced by those in the agricultural industry. By allowing farmers to deduct a higher amount of section 179 property, they will be able to invest in new equipment and technology to improve their operations and remain competitive in the market. Overall, the Section 179 for Farmers Act aims to support and incentivize the growth and success of the farming industry by providing tax relief to farmers who invest in their businesses.
Alternative Names
Official Title as IntroducedTo 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.

Comments

Recent Activity

Latest Summary11/4/2024

This bill increases the limitation on the deduction for business expenses related to depreciable assets under Internal Revenue Code §179 (expense deduction) for qualified property placed into service by a taxpayer in the trade or business of farmi...

Latest Action9/23/2024
Referred to the House Committee on Ways and Means.