Farmers may find their tax burden eased in 2020. Lawmakers passed a number of laws before heading out for the holiday break that will impact their tax obligations in the new year. Three examples include:
- Health Insurance Tax. One of the laws that Congress addressed before break was the Health Insurance Tax. This was part of the Affordable Care Act. Ultimately, lawmakers chose to repeal this tax. According to the American Farm Bureau Federation (AFBF), this will translate to tax savings for farmers. The main reason, according to the group, is due to a likely decrease in health insurance costs.
- Biodiesel incentives. Congress also passed spending bills that reinstate and extend tax incentives for biodiesel. This may lead to decreased shipping costs and help farmers get their crops out to their consumers at more reasonable prices.
- Railroad benefits. Lawmakers also passed a measure to restore and extend the 50% tax credit for short line railroad maintenance. This means the lines that connect communities to the national rail network can get much needed attention. This will lead to two key benefits. First, it will create jobs in our communities so community members can afford to support local farms. Second, it will help to better ensure the lines farmers use to get their crops throughout the nation are in good working order.
Farmers face unique tax challenges. Some information on these challenges is available here. Farmers that find themselves facing an audit or otherwise navigating complex tax obligations have options. An attorney experienced in the niche area of farm and ranch tax matters can review your situation and discuss available options.