Tax News

CCH (cch.taxgroup.com) reports:

  House and Senate negotiators said they have reached an agreement on a comprehensive farm bill's agricultural tax provisions, which they expect to approve on May 6. According to a Senate Finance Committee (SFC) news release on May 2, the negotiators predict they will act on a final package of farm tax reforms as well as a fully offset package of agriculture and economic aid provisions. This statement came as the White House announced that President Bush had signed Sen 2954, to extend the provisions of the Farm Security and Rural Investment Act of 2002 through May 16, 2008.

  The SFC release includes an abbreviated list of tax provisions that lawmakers have agreed to include in the measure. According to the release, the farm bill agreement will include provisions affecting Social Security, self employment taxes, ethanol credits, alcohol fuels tax credits, and information reporting for commodity credit corporation transactions. The agreement will also include a group of provisions that provide tax relief and incentives, among other changes, to agricultural investments and alternative fuels.

  Senate Agriculture, Nutrition and Forestry Committee Chairman Tom Harkin, D-Iowa., confirmed that the farm bill negotiations are in their final stages. Harkin predicted that the final bill would provide new funding and better policy in core farm bill initiatives, such as conservation, energy, nutrition and rural development.

  By Stephen K. Cooper, CCH News Staff

SFC Release: 2008 Farm Bill Tax Package Agreement --Farm Tax Reforms, Farm Tax Relief