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ASA Welcomes Tax Package Addressing Section 179 Expensing, Bonus Depreciation, and Biodiesel Tax Credit

Dec 16, 2015
ASA welcomes legislation which includes provisions important to soybean growers

WASHINGTON (December 16, 2015) – The American Soybean Association (ASA) welcomes legislation released last night that includes several provisions important to soybean growers. The Protecting Americans from Tax Hikes (PATH) Act of 2015 is expected to be voted on by the House of Representatives as early as Thursday. ASA supports passage and urges Representatives and Senators to vote for the bill.

A critical priority for ASA within the legislation is a two-year extension of the biodiesel tax credit. The credit is extended for two years (retroactive for 2015 and through 2016), however it remains as a blender’s credit rather than shifting to a producer’s credit as the ASA and biodiesel industry had supported. 

“The extension of the biodiesel tax credit is integral to the continued growth and expansion of the biodiesel industry in the U.S.,” said Richard Wilkins, ASA president and a farmer from Greenwood, Del. “We know that the industry can advance and produce beyond its current numbers, but the absence of the tax incentive since late in 2014 has hindered that growth. We’re happy to see it return and look forward to what biodiesel can do over the coming years. At the same time, we’re disappointed that Congress did not take this opportunity to maximize support for domestic biodiesel production by including the provisions passed by the Senate Finance Committee earlier this year to restructure it from a blender's to a producer's credit, and we thank Senator Grassley and Congresswoman Noem for their leadership on this issue.”

The bill also includes extension and modification of increased expensing limitations and treatment of certain real property as section 179 property. The provision permanently extends the small business expensing limitation and phase-out amounts in effect from 2010 to 2014 ($500,000 and $2 million, respectively). These amounts currently are $25,000 and $200,000, respectively. The provision modifies the expensing limitation by indexing both the $500,000 and $2 million limits for inflation beginning in 2016.

The bill provides a 5 year extension of the bonus depreciation for property acquired and placed in service during 2015 through 2019 (with an additional year for certain property with a longer production period). The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down, with 40 percent in 2018, and 30 percent in 2019. 

“The Section 179 and bonus depreciation provisions are a big deal for soybean farmers because they encourage investment in our operations in the form of new equipment, infrastructure and other capital improvements,” added Wilkins.



ASA represents all U.S. soybean farmers on domestic and international issues of importance to the soybean industry. ASA’s advocacy efforts are made possible through voluntary farmer membership by farmers in 30 states where soybeans are grown.

For more information contact:

Patrick Delaney, ASA Communications Director, 202-969-7040, pdelaney@soy.org