"I canβt wait to do my taxes."
Okay, maybe no one has actually said that, but if a new bill on Capitol Hill becomes law, doing those taxes may be a little less painful for generational farmers.
Representatives Jimmy Panetta (CA) and Mike Kelly (PA) recently introduced legislation that would update IRS Code Section 2032Aβmaking things a lot better for farmers faced with paying estate taxes.
Death to the Death Tax? Not exactly, but if passed, the new law would allow farmers and ranchers to pay estate taxes based on the landβs value for agricultural use.
History Lesson: Back in 1976, Congress recognized that estate taxes were placing huge burdens on generational farm families and passed the Tax Reform Act of 1976 to help keep taxes down via Special Use Valuations.
But deduction caps havenβt risen with rising land values, and the farmers and ranchers of today are now in the same boat as earlier generations.
According to Panetta, "My Preserving Family Farms Act would ease the burden on these [family farms] by ensuring that farms are appraised by the value of their business, rather than for development."
And ag groups are applauding the bill.
The National Cattlemenβs Beef Association, the American Farm Bureau Federation, and several state-level organizations have already endorsed the proposed legislation.
Where this goes: A similar bill sputtered out in the Ways and Means Committee during the last congressional session. But if the ag community keeps fueling the issue, this one might just make it past the finish line.