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WASHINGTON, DC - Montana’s Congressman, Denny Rehberg, is sponsoring legislation that will allow Montana’s farmers and ranchers to depreciate their equipment for tax purposes after five years of use instead of the current schedule of seven years. The Agricultural Equipment Depreciation Act (H.R. 4236) has over 20 cosponsors from both parties.
“Montana farmers and ranchers need every advantage they can get to remain competitive in a global economy,” said Rehberg, a member of the House Appropriations Committee. “The business of agriculture continues to evolve. It’s no longer practical to set the equipment depreciation schedule at seven years when the useful life of most farm equipment is about five years.”
The Rehberg-sponsored bill will amend the Internal Revenue Code of 1986 to treat certain farming business machinery and equipment placed in service before Jan. 1, 2010 as five-year property for purposes of depreciation. Agriculture is one of the top industries in Montana, accounting for thousands of jobs and over $2.6 billion to the state’s economy in 2004 alone.
“As a rancher, I understand the importance of reducing the equipment depreciation schedule,” added Rehberg. “Many of the same pieces of equipment that are used on farms are used in construction, yet when they’re used for construction purposes, they can be depreciated after five years. We need to give our agriculture producers the same fair deal. This bill will allow that to happen.” |
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