Thursday, January 03, 2013
In 2012, Illinois Farm Bureau members focused much of their
energy into resolving critical federal tax issues. With this week's
Congressional votes, Illinois' farm community has seen that all
that hard work has been worth it!
Illinois Farm Bureau called an action request from November 30
to December 7, which generated more than 4,400 contacts to our
delegation in support of current estate tax and capital gains
provisions, and supporting extensions of Section 179 expensing and
renewable fuels and energy tax credits. Senators, including
Majority Whip Dick Durbin, voted overwhelmingly (89-8) early New
Year's Day to pass the bill, which successfully resolved several of
our tax priority issues.
The House voted 257-167 to pass the fiscal cliff measure before
adjourning. Illinois Farm Bureau is very pleased that Reps.
Biggert, Costello, Davis, Dold, Gutierrez, Johnson, Kinzinger,
Lipinski, Manzullo, Quigley, Rush, Schakowsky, Schock, and Shimkus
each voted for the bill. The remaining four Illinois congressman
opposed the bill.
Because the fiscal cliff legislation addressed each and every
issue in our last action request, IFB urged a "yes" vote
on H.R. 8. Again, thanks to all of you who participated
in our end-of-the-year action request and made your contacts.
As you can see, we were able to help persuade the vast
majority of our delegation to support the bill and resolve some of
our biggest ticket agenda items.
Estate tax- H.R. 8
sets a permanent personal exemption at $5 million, ($10 million per
couple) indexed for inflation. The tax rate will be 40%. The
law also provides for a step up in basis. Without action, the
estate tax exemption would have fallen to $1 million dollars and
the tax rate would have risen from 35% to 55%. The 40% rate was a
concession for those who sought a lower ($3.5 million)
Capital gains rate-
The law leaves the capital gains rate unchanged at 15% for
individuals earning below $400,000 and couples earning below
$450,000. The rate moves to 20% for the top tax bracket.
Section 179 expensing
option - The maximum amount that a small business can
immediately expense when purchasing business assets instead of
depreciating them over time will be $500,000 reduced dollar for
dollar when expenditures exceed $2 million (2012 and 2013). The
Section 179 threshold will fall to a maximum $20,000 dollar for
dollar reduction on $200,000 purchases in tax year 2014 and
- Congress extended 50% bonus depreciation for the 2013 tax
Expiring tax provisions
extended benefitting renewable fuels and energy -
IFB invites you to be part of the next victory. Join our FB ACT
team and receive action requests. During these action requests,
farmers and supporters across the state unite, contacting their
legislators at the same time and proving the dedication we have to
building a brighter future for Illinois agriculture.
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