NCFC President Chuck Conner Commends Congress for Section 199 Provisions in Omnibus PackageWed, 21 Mar 2018 15:06:35 CDT
National Council of Farmer Cooperatives President Chuck Conner issued the following statement Wednesday in response to the Section 199A Provisions included in the Omnibus Appropriations Bill:
"I would like to commend congressional leadership for inclusion of provisions to address the marketplace impacts of Section 199A of the Tax Cuts and Jobs Act in the omnibus government funding package unveiled today.
"These provisions will accomplish the goal that NCFC and our member co-ops set out at the beginning of the tax reform debate last fall-preventing a tax increase on farmers and their co-ops by keeping the Domestic Production Activities Deduction, or DPAD. DPAD will largely be recreated in this bill, which also preserves the competitive position of co-ops in the marketplace. In fact, by combining the individual-level business deductions that farmers can claim and the recreated DPAD pass-through from their co-ops, farmers selling to cooperatives have the opportunity to see more of a tax deduction than farmers selling to non-cooperatives.
"This action fits in line with Congress's long history of public policy in support of co-ops and shows an appreciation of the unique relationship that co-ops have to their farmer-owners. It is a recognition that for many farmers, their co-op isnít simply some business that they buy from or sell to, itís an integral part, an extension of their operations.
"The benefits of these tax provisions will also be seen beyond just agriculture itself. A farmer with more money in his pocket will spend it with Main Street businesses in his community. When a co-op is able to generate more business and expand its operations, the profits go back to the member-owners to spend locally, not off to faceless Wall Street investors or absentee owners hundreds of miles away. The recreation of DPAD will help to ensure that co-ops remain a cornerstone of American agriculture and rural communities."
Source - National Council of Farmer Cooperatives
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