Today, Congressman Tim Huelskamp (KS-01) cosponsored the Fairness for Agricultural Machinery and Equipment (FAME) Act.
The FAME Act seeks to correct an aspect of the Internal Revenue Code that unfairly burdens farmers and manufacturers of farm equipment. Whereas business owners in most other industries can depreciate their capital assets on a 5-year schedule, the agricultural industry is subjected to an unfair 7-year depreciation schedule. This reduces the after-tax income of farmers and creates a disincentive toward upgrading farm equipment. The FAME Act would eliminate the 7-year depreciation schedule for agricultural capital assets, thus creating an equal playing field for farmers and manufacturers of farm equipment.
Congressman Huelskamp made the following statements concerning HR 4474:
"Farmers are the backbone of my home state of Kansas as well as our nation, and they should be treated fairly. The FAME Act will allow farmers the same tax benefits for business equipment purchases as folks in other industries. Allowing farmers to depreciate their equipment purchases after 5 years instead of 7 better matches the reality we face in farming. I am proud to be a cosponsor of this bill that will offer the farmers in Kansas, as well as throughout the United States, some necessary and common sense tax relief."