Senator Unveils Agriculture Tax Plan to Compliment Farm Bill
News Date September 17, 2007
Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee, unveiled a plan on September 11 to provide billions of dollars in tax relief and disaster assistance to farmers and ranchers. Baucus' agriculture tax package was proposed to be included in the 2007 farm bill and would provide incentives for conservation, alternative energy production, and create a permanent disaster relief fund.
The tax package will free up between $8 billion to $10 billion in revenue that can be used in the farm bill. Senate Agriculture Committee Chairman Tom Harkin (D-Iowa) said in a statement that he welcomed the proposal and that Baucus "understands our difficult budget situation and the critical need for the resources that will allow us to craft a successful new farm bill."
The Baucus proposal would establish a permanent disaster relief trust fund to provide financial assistance to farmers and ranchers affected by natural disasters. The package will also include a variety of tax incentives for wind, and as well as other alternative energy production to encourage farmers to grow crops used for ethanol, biodiesel, and cellulosic biofuels. Another provision would provide a conservation tax credit: While producers now receive cash payments for land conservation efforts, Baucus' plan would provide producers with the option of receiving a tax credit in lieu of the cash. Finally, the proposal will create a new category of tax credit bonds for projects such as rural electric and telemedicine, rural broadband and other economic development projects.
Final details of the agriculture tax package have not been released and Baucus plans to consider the legislation in the Finance Committee in the coming weeks. (Contact: Charlie Ingram)