Senate Tax Bill Maintains Key Provisions for Livestock Producers

The Senate version of the “Big Beautiful Bill” tax package brings mostly positive news for livestock producers. Kent Bacus, NCBA Executive Director of Government Affairs, explained that many provisions from the House version have carried over—most notably, the increase in the estate tax exemption to $15 million per individual ($30 million per couple), adjusted for inflation and made permanent.

Other key highlights include an increase in Section 179 expensing to $2.5 million and the continuation of disaster tax credits. However, there’s a slight disappointment in the Senate’s treatment of the 199A Qualified Business Deduction. While the House version bumped it to 23%, the Senate proposes just a 20% rate—though they plan to make it permanent, benefiting many small operations.

Notably, the bill preserves the step-up in basis, a crucial tool in generational farm and ranch transfers. While some enhancements, like the hoped-for boost to Section 2032A, didn’t make it in, the overall direction remains positive.