President Obama has signed legislation to provide a one-year renewal of almost $42 million in personal and business tax breaks. The bill extends approximately 55 tax credits, which expired at the end of 2013, through December 31, 2014. Among the tax breaks extended is a provision allowing farmers/ranchers to deduct during the 2014 calendar year for the purchase of new or used equipment, and allow for an accelerated depreciation schedule for related farm equipment. Despite efforts earlier this year to include a fix to the Medicare Sustainable Growth Rate (SGR), no such provisions were included in the final package.
Many had hoped to extend the tax breaks for a longer time period, but Congress was not able to come to an agreement. As a result of these failed negotiations, Congress will need to address this issue again in 2015.