Language from U.S. Rep. Tom Rooney (R-FL) regarding bonus depreciation to aid citrus growers was included in this week’s filing of the Tax Increase Prevention and Real Estate Investment Act of 2015.
Filed by Ways and Means Chairman Kevin Brady (R-TX), the act would extend tax provisions for the upcoming year. Rooney’s additional language follows concern over how bonus depreciation pertains to citrus farmers.
Citrus greening disease has plagued Florida’s citrus industry for more than a decade. The recently introduced legislation includes provisions aimed at aiding farmers tending to fruit- and nut-bearing trees, which includes the citrus industry. Farmers would be allowed to immediately depreciate the costs of planting new trees under the proposed bill, substantially reducing the financial risk that comes with the investment of planting.
Under current law, cost depreciation is prevented until a grove produces income, a process that often takes years. There are more than 130,000 acres of abandoned commercial citrus groves in the state of Florida.
Rooney has long been a supporter of bonus depreciation language to aid Florida citrus growers in investing in their own groves and helping the Florida citrus industry grow.
“I am very pleased and encouraged to see that the language I, and other Florida delegation members, requested to be included in the end of the year tax extenders package was included in the draft filed last night,” Rooney said. “This is a big step in the right direction and I am hopeful that this language is retained in any final tax bill we vote on before the end of the year.”