WASHINGTON – Today, U.S. Senator Jerry Moran (R-Kan.), Chairman of the Senate Appropriations Agriculture Subcommittee, recorded a radio actuality to express his support for a permanent Section 179 expensing allowance included in the tax extenders package that may be voted on as part of the omnibus legislation to fund the government through the end of Fiscal Year 2016.
n recent years, taxpayers have been able to immediately deduct up to $500,000 of the cost of certain acquisitions, including farm and ranch equipment. The deduction amount dropped all the way to $25,000 as of January 1 of this year. The omnibus released Tuesday evening makes permanent Section 179 at the higher limits, providing certainty for Kansas farmers, ranchers, equipment dealers and other small businesses in future years.
Sen. Moran’s remarks may be found below, along with links to the audio download:
“We’ve heard from lots of Kansans over the past year about a provision the tax code called Section 179. It’s a provision that expired on January 1 of this year, so it’s not in effect now, and what is does is allow for a small business person – a farmer, a rancher – who buys equipment to expense the purchase, reducing their tax burden… One piece of good news from the legislation expected to be voted on in the next few days in Congress is that Section 179 is extended and, in fact, made permanent. So the uncertainty that farmers and ranchers in Kansas and business men and women across the country have faced will finally come to an end… This is good news for Kansas agriculture in particular, and also for small businesses and equipment suppliers across our state. It means more economic activity, more job creation, and a greater level of certainty so folks can make decisions about how to spend their money.”
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