The National Pork Producers Council recently joined the U.S. Chamber of Commerce in a letter to Congress urging lawmakers and the next administration to prevent tax increases that will take effect at the end of 2025, absent legislative intervention. Several tax provisions in the Tax Cuts and Jobs Act critical to pork producers are slated to expire next year.

Among those provisions are the:

Additionally, several agricultural groups, including NPPC, briefed House Ways and Means Committee staff on the effects of the expiring TCJA tax provisions. NPPC’s Christina Banoub, manager of competition, labor and tax issues, discussed the estate tax exemption, Section 199A, bonus depreciation, capital gains taxes and the step-up in basis. Under the current tax code, the step-up in basis allows the value of an inherited asset to be “stepped up” to its current market value, if it has appreciated over time. That step-up in basis minimizes the capital gains tax owed when the asset is later sold.

NPPC continues to ensure the tax provisions they rely on are protected and is advocating for further tax changes that will benefit the pork industry. NPPC is also working with a leading accounting and food and agriculture consulting firm to create an in-depth analysis of the tax provisions most critical to producers. The study will help NPPC effectively protect and advance those provisions.

In the latest Capital Update, NPPC noted, "pork producers rely on effective tax policy for preserving family farms. If tax provisions in the TCJA are allowed to expire, producers likely would see a substantial increase in their tax liability."