Schumer to Introduce Depreciation Act

A New York Senator will ask his colleagues in Washington to pass a bill that would accelerate the rate at which farm equipment depreciates.

U.S. Sen. Schumer (D-NY) announced his support of the Agriculture Equipment and Machinery Depreciation Act last week. The bill would revise federal tax code so farmers could depreciate their equipment over five years rather than seven, which Schumer said makes it possible for them to invest in new equipment sooner.

The bill, S.801, proposes claiming the full depreciation deduction over five years. It was filed by Sen. Klobuchar (D-MN) in July. Schumer is its sole co-sponsor.

The bill has been referred to the Senate Finance Committee. It has not received a hearing but could become part of the annual year-end tax-extender package. 

Related Note:

The House Ways and Means Committee sent legislation to the full House last week permanently extending the 50% bonus depreciation on farm equipment, a tax provision that expired in 2014.

Pat Wolff, tax advisor for the American Farm Bureau, said the House and Senate agree the bonus depreciation is good, but they are “miles apart” on how long it should remain in effect.

She encouraged farmers and ranchers to call Congress and “tell them it’s impossible to run a business when you don’t know what the tax rules are.”  S