On behalf of Iowa’s corn farmers, the Iowa Corn Growers Association (ICGA) would like to thank the Senate and House Ways and Means Committees for passing a one year, full coupling of Section 179 to the federal provision allowing farmers and small businesses to expense and depreciate capital expenses on their tax returns. ICGA thanks the legislators who voted for this measure in Committee. Both bills, HSB 642 and SSB 371, will move to the floor as early as next week.
Iowa farm families rely on these tax provisions to manage their cash flow and reinvest in their businesses which supports Iowa’s rural economy. In a year when taxable income will be lower, reliable tax deductions are extremely important.
The federal tax relief measure passed both the U.S. House and U.S. Senate as part of the Protecting Americans from Tax Hikes (PATH) Act in late 2015. These steps taken by the Iowa Senate and Iowa House Ways and Means Committees would allow coupling Iowa’s tax code with this recent change to the federal code, including Section 179 expensing and bonus depreciation for tax year 2015. Section 179 is a key tool for farmers and small businesses alike as it allows businesses to deduct the full purchase price of qualifying equipment (new or used) and/or software purchased or financed during the tax year from gross income.
Thanks to all of the ag groups, business groups, bankers, accountants, and especially to the many, many farmers and Iowa Corn Growers Association members who made contact with their legislators to make this happen. ICGA will continue to stand up and use our voice in support of these important tax provisions for farmers. We urge Iowa corn farmers to continue to communicate to legislators and Governor Branstad the importance of the Section 179 Coupling to Iowa’s farmers, until the bill is signed.