The folks at the American Soybean Association are generally pleased. While they would have preferred a five-year farm bill be included in the package, ASA President Danny Murphy says an extension of the biodiesel tax incentive and a solution for the estate tax are both “positives” for soybean growers.
Bob Dineen, at the Renewable Fuels Association, was happy to see an extension of the cellulosic producer and the alternative fuel infrastructure tax credits through the end of 2013.
Farm equipment manufacturers must be pleased. One of the surprises in the deal was the renewal of Section 179 and bonus depreciation rules that have allowed farm operations to shelter some of their income. The bill extends 50 percent bonus depreciation through the end of the year. It also hikes Section 179 deductions to the old 2010-2011 level of $500,000 for 2012 - 2013.
Without the last-minute change, bonus depreciation was set to expire and only $25,000 in Section 179 write-off would have been allowed in 2014.
Economist Paul Neiffer said the legislation is “something farm equipment manufacturers will celebrate.”