The U.S. House Ways and Means Committee recently held a tax field hearing at the Iowa State Fair, taking stakeholder testimony on the impact of several expiring provisions in the Tax Cuts and Jobs Act (TCJA). A number of critical provisions such as bonus depreciation, qualified business income deduction, and increased estate tax exemptions will begin expiring, unless Congress intervenes.
Agriculture and business stakeholders shared how important those provisions and others are for their continued success and survival. NPPC’s Chase Adams, assistant vice president of domestic policy; Christina Banoub, manager of competition, labor, and tax issues; and Tyler Bettin, assistant vice president of producer services, attended the hearing.
Ways and Means Committee Republicans have established “tax teams” to consider potential tax legislation for 2025 as TCJA provisions start to expire.
NPPC’s take: NPPC will work with the tax teams and congressional partners on a bipartisan basis to ensure tax provisions producers rely on are preserved and will advocate for additional tax changes that benefit the pork industry. It also will submit comments to the Ways and Means Committee on extending the provisions.
NPPC has been partnering with a leading accounting and food and agriculture consulting firm to create an in-depth analysis to help protect and advance the tax provisions most important to the pork industry.
Why it matters: Pork producers across the country rely on effective tax policy for profitability, financial stability, growth, and strategic business planning. Expiration of the Section 199A qualified business income deduction, for example, would cause most producers either to face an increase in tax liability or accept less flexibility and dual taxation as a corporation. Producers who have faced two years of low or even negative margins, changes that increase taxes may seriously limit or even prevent producers from recovering from those tough economic challenges.
Bonus depreciation, which helps producers make significant and cutting-edge capital investments by allowing them to deduct the cost of a piece of equipment, for example, in the year it is placed into service instead of depreciating it over several years. Losing bonus depreciation could lead to an increase in producers’ taxable income.
