(U.S. Senate) – Third-generation farmer and U.S. Senator Jon Tester is working to simplify the tax code and provide farmers and ranchers with greater certainty when it comes to investing in equipment and growing their operations.
The U.S. tax code currently allows farmers and ranchers to deduct the value of some machinery and equipment as it depreciates over time. Currently, producers can recover the depreciated cost of agriculture equipment over a seven-year period.
Tester introduced a bipartisan bill that would allow farmers to take a depreciation deduction on agriculture equipment over five years, which is the average financing period for farm equipment.
“Technology is becoming a bigger and bigger part of production agriculture,” Tester said. “As equipment improves and technology improves the lifespan of equipment decreases. That’s why I have introduced this bill—to reduce the time from seven to five years that farmers can depreciate their equipment.”
The Senator’s bill is supported by the American Farm Bureau Federation and the National Farmers Union.
Tester’s Agriculture Equipment and Machinery Depreciation Act, which is also sponsored by Senators Amy Klobuchar (D-Minn.), Pat Roberts (R-Kan.), and Chuck Schumer (D-N.Y.) is available online HERE.
Source: Senator Jon Tester's Office