As the House Ways and Means committee considers action on expired tax provisions this week, the American Soybean Association (ASA) sent a letter urging consideration of several components that would benefit the soybean community.

Issues ASA showed support for include restoration of Section 179 expensing and bonus depreciation to previous levels and continuation of the biodiesel tax credit. In the letter, ASA commends the Committee for its efforts to advance comprehensive tax reform, but urges them to move forward quickly to minimize disruption and uncertainty.

“As we stated publicly following the release of the Chairman’s draft comprehensive tax reform proposal, ASA strongly supports many components of the tax reform proposal, including the provision to allow farmers to continue utilizing cash-based accounting regardless of size and to make expensing deductions under Section 179 permanent,” the letter states. “ASA also strongly supports the proposed increase in revenues for investment in our waterways and highway transportation infrastructure, including an increase in the barge fuel fees that fund the Inland Waterways Trust Fund.  Investments in transportation infrastructure are vital to maintaining the global competitiveness of American soybean farmers.”

Section 179 helps farmers to create and maintain manufacturing and marketing jobs.  The ability to immediately expense equipment and other capital purchases provides an incentive for farmers to invest in their businesses and reduces the record keeping burden associated with the depreciation.  Due to weather variability, agricultural income is both cyclical and uncertain and these provisions allow farmers to make much needed large capital expenditures in those years when they have a positive cash flow.

In the letter, ASA urges the prompt consideration of tax extenders legislation that, at a minimum, includes restoration of Section 179 expensing and bonus depreciation to previous levels, and continuation of the $1.00 per gallon biodiesel tax credit.

The biodiesel tax credit extension would provide support for jobs, economic development in rural communities, diversity in our energy and fuel sources, and reduction in greenhouse gas emissions, among others. The tax credit plays an important role in the competitiveness of the developing biodiesel industry with the long-standing, mature and entrenched petroleum industry.