The House of Representatives, in a strong bipartisan vote (378-16), extended a number of tax provisions that had expired last December. The package of tax extenders covers calendar year 2014. 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 Senate is expected to consider the bill this week.