Daily News Update, Feb. 1, 2008

Economic stimulus bills offer help for small businesses

NCBA sent a letter recently to Senate Finance Committee leaders supporting certain provisions within the Economic Stimulus package currently under consideration by Congress.

In a letter dated Jan. 29 to Committee Chairman Max Baucus (D-Mont.) and Ranking Member Charles Grassley (R-Iowa), NCBA expressed support for a provision that increases the depreciation deduction limitations under section 179 from $128,000 to $250,000 with a corresponding increase in the phase-out threshold from $510,000 to $800,000.

"Beef production, by its very nature, is a capital intensive business," said NCBA Vice President of Government Affairs Jay Truitt. "In order to carry out day-to-day activities on a farm or ranch, producers are required to invest significant amounts of money in depreciable, tangible property, such as machinery."

"Section 179 expensing is a valuable tool for small businesses, and this provision will certainly benefit cattle producers as they make the capital investments necessary to maintain their operations," Truitt said.

NCBA also voiced support for the special depreciation allowance and Net Operating Loss carry back rules as important tools for small businesses.

The House passed its stimulus bill, HR 5140, on Tuesday by a margin of 385-35.  The Senate is expected to act on its own economic stimulus package soon.