Iowa Farm Bureau Federation, (IFBF) long a champion for tax reform, says family farmers just got an early Christmas present with the passage of a sweeping tax reform bill. The reform doubles their exemption for the death tax and lowers tax brackets for all tax payers while offering a new 20 percent deduction of pass-through income for farms and small businesses.
IFBF, Iowa’s largest grassroots farm organization, applauds long-awaited tax reform, seeing benefits for all Iowans. “The measure does a number of positive things for farmers; it doubles the amount of business expenses they can deduct from taxes and allows them to deduct paid interest on loans. And, it also provides much needed relief for families passing the farm to the next generation, by doubling the estate tax exemption,” says IFBF President, Craig Hill. “Helping Iowa farmers keep more money at home is a step in assuring sustainability of family farming as we’re staring down a fourth year of a stifled ag economy. Ag is central to the state’s economy, accounting for one out of every five jobs in this state, while contributing 33 percent of Iowa’s economy. Tax reform means Iowa farmers can reinvest more of their hard-earned income for critical needs, such as upgrading equipment or the expansion of conservation practices,” says Hill.