The U.S. House of Representatives passed a significant tax relief bill on Wednesday. The Tax Relief for American Families and Workers Act was passed by a vote of 357 to 70. Some of the bipartisan bill’s provisions include restoring immediate research and development tax deductions for small businesses and providing expense and interest deductions for farmers and family-owned farms.
“Farm Bureau applauds the passage of the Tax Relief for American Families and Workers Act by an exceedingly large margin in the House last night. This legislation will bring meaningful tax relief to our nation’s farmers and ranchers at a time of high interest rates and slim margins,” American Farm Bureau Federation President Zippy Duvall said in a press release. “We urge the Senate to act swiftly in adopting this measure, which provides a small amount of certainty as we approach the looming 2025 tax cliff.”
The Tax Relief for American Families and Workers Act would increase the amount that businesses can write off to $1.29 million. It would also increase the phase-out threshold amount from $2.5 million to $3.22 million. Reporting thresholds for payments made to independent contractors would be increased from $600 to $1,000 through the legislation. Thresholds would also adjust for inflation after 2024.
The tax relief bill has garnered support from hundreds of national trade associations representing a variety of industries. A letter sent to Congressional leaders, signed by 261 trade groups, highlights the importance of the legislation. “We strongly support the Tax Relief for American Families and Workers Act to bolster our economy and support American workers and families by acting without delay to restore immediate R&D expensing, a pro-growth interest deductibility standard, and full expensing for capital investments,” the letter reads.
Brian German
Ag News Director / AgNet West