In a recent survey of our members on Farm Bureau tax policy, the interest deduction was the single most prioritized policy. Maintaining that critical provision is a top IFB priority in tax reform.
However, the U.S. House Republican Blueprint for Action takes interest deduction and makes it meaningless for virtually every farm businesses.
"Under this Blueprint, job creators will be allowed to deduct interest expense against any interest income, but no current deduction will be allowed for net interest expense. Any net interest expense may be carried forward indefinitely and allowed as a deduction against net interest income in future years."
Does your farm business generate enough interest income – now or in the future – to offset interest expenses on your operating loans or the loans you’ve taken out to purchase land or equipment?
If the answer to that question is “no,” you need to take action NOW!
Please take a moment to send an email to your Congressman, your U.S. Senators and to the Illinois members of the tax writing U.S. House Ways and Means Committee. Tell them to insist that any tax reform bill allow farmers to deduct their interest expenses regardless of whether they have any interest income.