A Senate committee is set to move a two-year extension of popular tax benefits, including wind power and biofuel credits as well as a higher Section 179 expensing allowance widely used by farmers in purchasing new equipment, Agri-Pulse reports.
The tax provisions renewed for 2014 have now expired. The House has acted to make some of the provisions permanent, including the Section 179 allowance, but those bills are not expected to become law because of the steep cost.
The Senate Finance Committee will vote Tuesday on the two-year extensions, which include the production tax credit that subsidizes wind power as well as the $1-a-gallon credit for biodiesel and the $1.01-per-gallon tax subsidy for cellulosic biofuels.
The committee’s draft bill also includes extensions of the 30 percent investment tax credit for ethanol blender pumps and a special depreciation allowance for next-generation biofuel production facilities.
The higher Section 179 allowance raises the amount a farmer or other business owner may immediately expense from $25,000 to $500,000 annually. The higher allowance would cost the government an estimated $3.36 billion in lost revenue over 10 years.