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Increased Tax Deduction Limit for Farm Equipment Purchases.

This bill significantly raises the amount farmers can immediately deduct from their taxable income for purchasing new machinery, equipment, and certain property. The deduction limit for farming businesses is increased to $1.5 million, encouraging modernization and investment in the agricultural sector. These changes take effect for property placed in service after December 31, 2024, providing substantial financial relief to farmers.
Key points
Farmers can immediately deduct up to $1.5 million of the cost of qualifying farm property in the year it is purchased (Section 179 deduction).
This new limit will be adjusted annually for inflation starting in the 2026 tax year.
The measure aims to provide financial relief and incentivize capital investment by agricultural businesses.
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Expired
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Additional Information
Print number: 118_HR_9761
Sponsor: Rep. Lopez, Greg [R-CO-4]
Process start date: 2024-09-23
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

To amend the Internal Revenue Code of 1986 to allow an increased dollar limitation for section 179 property placed in service in the trade or business of farming.

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_9761.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-09-23.

What are the main provisions?

Key points include:

  • Farmers can immediately deduct up to $1.5 million of the cost of qualifying farm property in the year it is purchased (Section 179 deduction).
  • This new limit will be adjusted annually for inflation starting in the 2026 tax year.
  • The measure aims to provide financial relief and incentivize capital investment by agricultural businesses.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Lopez, Greg [R-CO-4].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-26.

CATEGORIES

Taxes Agriculture