The National Cattlemen’s Beef Association (NCBA) released the following statement in response to the House Ways and Means Committee passing a tax package that provides significant tax relief to family farms and ranches. The bill includes several beneficial provisions including an increase in the exemption amount for the federal estate tax, also known as the Death Tax, a top priority for America’s cattle producers. The tax package must be approved by the House of Representatives as part of the reconciliation process.
“The Death Tax is a death warrant for family businesses and the top threat to family-owned cattle operations. NCBA has been working with members on and off the Ways and Means Committee for months to educate them about the needs of cattle producers and advocate for the tax provisions that are the most effective for cattle operations,” said NCBA President and Nebraska cattleman Buck Wehrbein. “This work would not have been possible without the broad participation we had in NCBA’s tax survey from producers, who detailed the struggles they have had with paying the Death Tax and what they would like to see in a broader tax package. This is a huge victory for grassroots advocacy and everyone that made their voice heard—from the producers that have not paid the Death Tax yet—to those that have paid it multiple times to avoid losing their livelihoods.”
The tax provisions in the bill that help family-owned cattle operations the most include:
- An increase to the estate and gift tax exemption amounts to $15 million per individual and $30 million per couple, adjusted for inflation annually, the package also makes this exemption permanent.
- A permanent increase to the Section 199A Small Business deduction from 20% to 23%.
- Expanding the limitation on Section 179 expensing from $1 million to $2.5 million.
- Reinstating the 100% bonus depreciation for five years without a phase out period.
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