The seven-year depreciation schedule for agricultural equipment may soon be changed to a five-year schedule. Four U.S. Senators have introduced legislation that would amend the tax code by making agricultural equipment depreciation the same as that of construction equipment, which is currently a five-year schedule.
Senators Amy Klobuchar (D-MN), Jerry Moran (R-KS), Pat Roberts (R-KS), and Debbie Stabenow (D-MI) introduced the legislation to make the tax code more consistent regarding all equipment and to assist agriculture workers and businesses by increasing income, making it easier to finance their new equipment when their previous machinery has depreciated.
Stabenow, as Chairwoman of the Senate Agriculture Committee, supported the legislation as a way to simplify farm policy and strengthen the economy through encouraging farmers to invest in agribusiness. The bill's other sponsors are also involved with agriculture in the Senate, with Roberts serving as ranking member of the Senate Agriculture Committee and Klobuchar also sitting as a member. One of Moran's committee assignments is the Appropriations Subcommittee on Agriculture and other issues.
Posted: April 3, 2011
