Soy growers and  others in the agricultural industry sent a letter to the U.S. House of Representatives this week, urging them to restore the higher Section 179 expensing limits and 50 percent bonus depreciation, both of which expired on Dec. 31, 2014.

With the significant need for farmers and ranchers to continuously invest in machinery, equipment and other depreciable assets, the need to renew the higher Section 179 small business expensing limits and 50 percent bonus depreciation is great.

“Section 179 and bonus depreciation allows them to write off capital expenditures in the year that purchases are made rather than to depreciate them over time,” the groups state in the letter. “The ability to immediately expense capital purchases also provides an incentive for farmers and ranchers to invest in their businesses and offers the benefit of reducing the record keeping burden associated with the depreciation.

The expired law states that the maximum allowable amount that a small business can immediately expense when buying business assets, rather than depreciating them over time is $25,000. The letter encouraged Congress to restore the maximum amount of expensing under Section 179 to $500,000 as it was previously set in 2014, as well as requesting the reinstatement of 50 percent bonus depreciation tax incentive for the purchase of new capital assets.

The American Soybean Association (ASA) is a supporter of the renewal of the expired tax code Section 179 small business expensing and bonus depreciation and hopes to see it included in a multi-year extenders package.

Click here to read the entire letter.