Farm Equipment tax write-off
The U.S. Senate passed a bill late Dec. 16 extending the Section 179 accelerated depreciation limit back to the original $500,000 limit.
Citizens can now write-off up to $500,000 in equipment, software or vehicles financed in 2014. The previous limit was $25,000.
The bill only applies to the 2014 year and will not be renewed in 2015.
The Section 179 part of the bill is part of a $42 billion tax incentive that Congress passed easily with a 76-16 vote in the Senate Dec. 16 and a 378-46 vote in the House on Dec. 3. Now that the bill has been voted through both the House and the Senate, it will now go to President Obama for him to approve.
According to the Association of Equipment Manufacturers, farm equipment sales were down for 2014 and industry leaders such as John Deere were forced to lay off employees. According to the association the extended and expanded tax write-off limit is expected to help sales for the final weeks of the year.
