A newly advanced tax package from the House Ways and Means Committee includes several measures aimed at easing financial pressures on family-owned cattle operations. The legislation, which still requires approval from the full House of Representatives, introduces long-sought reforms to the federal estate tax and expands deductions critical to agricultural producers.
Among the most significant elements is a proposal to increase the estate and gift tax exemption to $15 million per individual and $30 million per couple. The exemption would be adjusted annually for inflation and made permanent, addressing what many in the cattle industry describe as one of the most burdensome threats to the continuity of family-run operations.
Family-owned cattle operations have long argued that the estate tax, commonly referred to as the “Death Tax,” places an undue financial burden on the transfer of land and assets between generations. In response, the National Cattlemen’s Beef Association (NCBA) has actively lobbied for tax relief measures to help producers maintain operations within families without being forced to sell off assets to cover tax liabilities.
In addition to estate tax reform, the tax package includes:
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A permanent increase in the Section 199A Small Business Deduction from 20% to 23%, providing added tax savings for many agricultural businesses.
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An expansion of the Section 179 expensing limit from $1 million to $2.5 million, allowing greater upfront deductions for equipment and infrastructure investments.
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A reinstatement of 100% bonus depreciation for five years, without a phase-out period, aimed at encouraging reinvestment in production facilities and equipment.
These changes follow months of advocacy from agricultural stakeholders and reflect feedback gathered through industry surveys, which highlighted the impact of tax policy on family operations. The NCBA, representing cattle producers nationwide, has indicated that while it continues to support full repeal of the estate tax, the proposed increases in exemptions and expanded deductions would offer meaningful and immediate benefits to producers.
The bill’s progress is being viewed as a positive development for rural America, where agricultural operations form the backbone of many communities. If passed, the legislation is expected to offer greater financial certainty for producers and promote long-term investment in U.S. cattle operations.
