House lawmakers will not make any changes to the step up in basis tax policy, but that does not mean farmers will not face potential harm if the $3.5 trillion dollar spending plan is passed.
Ag accountants are still sorting through the massive plan, but the biggest item that sticks out is the proposed change to the estate tax exemption from the current $11.7 million dollars, down to $5 million.
This would start at the end of the year, rather than 2025, as current law states. The plan would also roll back nearly all of the Trump-era tax cuts, and it includes changes to corporate taxes and business deductions.
The House Ways and Means Committee is expected to vote on the measure today and send it to the full House.
The House Ag Committee’s portion of the bill includes nearly $130 billion dollars in spending for agriculture.
$66 billion is earmarked for forestry, rural economic development, and ag research
$28 billion would go to conservation funding
- $35 billion would expand child nutrition programs
The vote was along party lines with some Republicans expressing disappointment about the lack of bipartisanship in the discussions.
Related:
Hard to Believe: removing stepped up basis won’t increase taxes on the farm
“If you sell of our assets then there is nothing left for us to use to make a living”