Today, both the Iowa House and Senate passed 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. The Iowa Corn Growers Association (ICGA) thanks the House and Senate leaders for swiftly bringing this to a vote on the floor, and also appreciates those who voted for the passage of both bills.
“The actions of the House and Senate will allow for Iowa’s farm families to take full advantage of reinvesting in their businesses. In order to successfully run a farm, you must continually update and replace equipment in order to maintain a fully functioning operation,” said ICGA President Bob Hemesath. “With volatile commodity prices and general downturn in the ag economy, this measure keeps Iowa’s rural economy going strong and allows farmers to manage cash flow when we do experience a tighter ag economy.”
Iowa’s farm families rely on these tax provisions to manage their cash flow and reinvest in their businesses. 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.
Thank you to all of the ag groups, businesses, bankers, accountants, and to the many farmers and ICGA members who made contact with their legislators to make this happen. “This is an example of when we bring together our collective voice, we can positively influence issues affecting Iowa’s ag industry,” stated Hemesath.
The Iowa Corn Growers Association (ICGA) is an 8,000-member strong grassroots-driven organization, headquartered in Johnston, Iowa, serving members across the state, and lobbying on agricultural issues on behalf of its farmer members to create opportunities for long-term Iowa corn grower profitability. For more information, visit iowacorn.org.