One of the last items of business before the Senate recessed for the year was passing the House tax extenders legislation. The package of tax extenders covers calendar year 2014 for approximately 50 tax provisions that had expired December 2013.
A number of provisions important to agriculture were included in the legislation. It renews Section 179 small business expensing provision that is important to producers. This provision was raised from the current $25,000 to $500,000 for 2014. This allows business owners to depreciate the cost of equipment in the year it was purchased, rather than spreading it over a number of years. Other tax credits extended for the year include the biodiesel tax credit, wind energy and research and development.
The president has indicated he will sign the bill. The 114th Congress plans to consider overall tax reform next year.