Clock Ticks on Section 179

Washington leaders have yet to unveil a $1.1 trillion omnibus budget package, and the holiday countdown is on.

Lawmakers missed the December 11 deadline and were forced to pass a short-term funding bill to keep the government’s lights on through this Wednesday.

The budget package now
under review by lawmakers will include a decision on tax extenders, including Section 179, which is the provision that allows buyers to deduct in one year the entire cost of a piece of farm equipment rather than make smaller, year-by-year deductions based on depreciation.

The current, temporary Section 179 allows for bonus depreciation deductions up to $25,000. Prior year levels were $500,000.

The Association has contacted leaders in Washington to urge them to permanently adopt the higher threshold and will notify members of the status of Section 179 as soon as the omnibus bill passes. S