Press Releases
Senator Roberts: Senate Finance Committee approves Ag Tax Package
Roberts Ag Security Legislation Included
Oct 04 2007
WASHINGTON, DC – U.S. Senator Pat Roberts (R-KS) today announced the Senate Finance Committee on which he serves approved the The Heartland, Habitat, Harvest and Horticulture Act. The bill includes several tax provisions important to Kansas agriculture.
Senator Roberts has long supported efforts to clarify the tax treatment of Conservation Reserve Program (CRP) payments. The bill includes two provisions to address this concern. First, the bill allows farmers with land enrolled in CRP the option to take either a tax credit or the traditional cash payment. The tax credit will be equal to the rental value of the property enrolled in the program. However, unlike the cash payment, the credit is not subject to income or self-employment tax.
Second, the bill provides that individual retired or disabled farmers and ranchers are not required to pay self-employment tax on their CRP income.
“I applaud the Senate Finance Committee for taking a huge step forward for our farmers and ranchers,” Senator Roberts said. “I have long said that farmers receiving CRP payments should not have to pay self-employment taxes on that income - placing an added tax burden on our producers.”
Also included in the agriculture tax package is legislation Senator Roberts authored and introduced earlier this year with Sen. Ben Nelson (D-NE), the Agricultural Business Security Tax Credit Act of 2007. The bill provides a tax credit to implement security measures at agricultural facilities where pesticides and fertilizers are stored. Agriculture retailers, distributors, manufacturers, formulators and aerial applicators of agricultural pesticides or fertilizers are eligible for the credit.
Agribusinesses can receive up to $100,000 per facility in tax credits for expenditures including: employee security training and background checks; limitation and prevention of access to controls of specified agricultural chemicals, protection of perimeters including lights, cameras and intrusion detection sensors, and computer network security.
“It is critical that we think outside the box to continue to fight and win the war on terrorism,” Senator Roberts said. “ It is also no secret that highly hazardous and volatile chemicals are used in agriculture and should be secured from terrorists. This tax credit will pass on savings to benefit not only the agribusiness, but the producer and eventually, the consumer,” Senator Roberts said.
The bill also includes a provision that allows farming business machinery and equipment to be depreciated over a period of 5 years rather than 7 years. A shorter depreciation schedule will allow farmers to receive the tax benefit on a schedule that is more realistic with the life span of machinery and equipment.
Lastly, the Finance Committee approved by voice vote S 2113, implementing legislation for the U.S.-Peru free trade deal. “I’m pleased that the Senate Finance Committee approved the Peru Trade Promotion Agreement. It is an important step under the fast-track rules and I hope that my House colleagues act on the agreement quickly,” Senator Roberts said.
The bill now goes to the full Senate for debate and a vote.
Senator Roberts is a member of the Senate Finance Committee and a senior member of the Senate Agriculture Committee.
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Senator Roberts has long supported efforts to clarify the tax treatment of Conservation Reserve Program (CRP) payments. The bill includes two provisions to address this concern. First, the bill allows farmers with land enrolled in CRP the option to take either a tax credit or the traditional cash payment. The tax credit will be equal to the rental value of the property enrolled in the program. However, unlike the cash payment, the credit is not subject to income or self-employment tax.
Second, the bill provides that individual retired or disabled farmers and ranchers are not required to pay self-employment tax on their CRP income.
“I applaud the Senate Finance Committee for taking a huge step forward for our farmers and ranchers,” Senator Roberts said. “I have long said that farmers receiving CRP payments should not have to pay self-employment taxes on that income - placing an added tax burden on our producers.”
Also included in the agriculture tax package is legislation Senator Roberts authored and introduced earlier this year with Sen. Ben Nelson (D-NE), the Agricultural Business Security Tax Credit Act of 2007. The bill provides a tax credit to implement security measures at agricultural facilities where pesticides and fertilizers are stored. Agriculture retailers, distributors, manufacturers, formulators and aerial applicators of agricultural pesticides or fertilizers are eligible for the credit.
Agribusinesses can receive up to $100,000 per facility in tax credits for expenditures including: employee security training and background checks; limitation and prevention of access to controls of specified agricultural chemicals, protection of perimeters including lights, cameras and intrusion detection sensors, and computer network security.
“It is critical that we think outside the box to continue to fight and win the war on terrorism,” Senator Roberts said. “ It is also no secret that highly hazardous and volatile chemicals are used in agriculture and should be secured from terrorists. This tax credit will pass on savings to benefit not only the agribusiness, but the producer and eventually, the consumer,” Senator Roberts said.
The bill also includes a provision that allows farming business machinery and equipment to be depreciated over a period of 5 years rather than 7 years. A shorter depreciation schedule will allow farmers to receive the tax benefit on a schedule that is more realistic with the life span of machinery and equipment.
Lastly, the Finance Committee approved by voice vote S 2113, implementing legislation for the U.S.-Peru free trade deal. “I’m pleased that the Senate Finance Committee approved the Peru Trade Promotion Agreement. It is an important step under the fast-track rules and I hope that my House colleagues act on the agreement quickly,” Senator Roberts said.
The bill now goes to the full Senate for debate and a vote.
Senator Roberts is a member of the Senate Finance Committee and a senior member of the Senate Agriculture Committee.
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