Budget Reconciliation Bill Passes Congress

By Lyndi Allen

Supporting Progress, Calling for Fixes: IL Corn Responds to the passed Budget Reconciliation Bill

Illinois corn farmers will be impacted by many provisions in the Budget Reconciliation Bill that passed in both chambers this week. Some provisions are good, some are less positive; IL Corn’s biggest concerns are around base acre updates, crop insurance changes, and viability of future Farm Bills.

Budget Reconciliation Breakdown

• Tax components of the bill are largely very positive for farmers, including:
• Estate Tax Relief will help farm families to pass their farm to the next generation
• Ensuring Permanency for 199A Qualified Business Income Deduction helps agricultural producers and farmers compete with larger corporations by allowing them to keep a portion of their income
• Making the Lower Individual Tax Rates and Expanded Tax Brackets Permanent in the Tax Cuts and Jobs Act are essential—allows farmers to reinvest and manage increased production costs
• Increasing Section 179 Expensing from $1 million to $2.5 million—important for substantial investments in equipment and technology: encouraging investment, productivity, and innovation
• Restoring 100% Bonus Depreciation enables essential investments in equipment and infrastructure without delayed tax benefits for the latest technologies and practices to enhance efficiency
• Securing a longer runway for 45Z incentives helps sustainable aviation fuels (SAF)—creating future markets for ethanol, but the reduced value of the credit may delay development