Our position
U.S. potato producers support a tax structure that rewards entrepreneurship and business investment. NPC supports a government presence in those activities not efficiently performed by private industry including the infrastructure to market U.S. agricultural products both domestically and abroad.
Co-sponsor the Death Tax Repeal Act
Congressman Randy Feenstra (R-Iowa) has introduced the Death Tax Repeal Act. This bill would repeal the estate tax for family-owned businesses and farms. This solution would resolve issues relating to incremental attempts to increase the threshold for agricultural estate issues and
related provisions.
Restore or Improve Agriculture Tax Provisions under the TCJA
The Tax Cuts and Jobs Act (TCJA) has various provisions important to agriculture that have expired or will expire by the end of 2025. It is important to restore or modify these provisions as introduced in H.R. 7024 in the previous 118th Congress. These provisions include:
- Making permanent the estate tax provisions under the TCJA (as a fall back to the Death Tax Repeal Act) including stepped-up basis and indexing for inflation.
- Section 199A deduction that is intended to help “pass through” entities such as small businesses and cooperatives.
- Bonus depreciation that incentivizes businesses to make capital expenditures thereby encouraging job creation. Growers should be able to fully deduct equipment purchases (this ability was removed under the TCJA).
- Raising the maximum deduction level for Section 179 expensing.
- Remove the TCJA requirement that research and development costs must be capitalized and amortized over five years, rather than deducted in the year incurred.
- Restore the treatment of business income under Section163(j) as authorized under HR 7024, allowing flexibility for farm businesses to maintain access to favorable depreciation and bonus depreciation provisions.
