President Obama signs Section 179

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President Obama signs Section 179

Section 179 has been past retroactive for 2015 with the $500,000 deduction limit (without the measure the limit was $25,000), but this time the rule has been made permanent. Congress passed the measure early last week, and it was signed into law by President Obama – along with a comprehensive Omnibus spending measure – just before he flew west to Hawaii for vacation. Farm groups praised the tax extender move noting that this is significant for farmers. The same tax bill also extended the biodiesel tax incentive, but also did not stop import of biodiesel from international sources. The tax bill is a major compromise that offered a range of benefits for different groups. It’s been attacked by some as welfare for businesses, but each side of the Congressional aisle got many provisions they wanted. The key is getting some certainty back into the tax code, which is important if you’re running a business for the long haul and what farmer isn’t doing that. While the slumping farm market will hinder purchases for different reasons, farmers looking to continue keeping up with technology improvements by updating their equipment have new help in that approach.

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