Senate GOP Likely to Extend Key Ag Breaks in House Tax Bill

Senate Republicans are expected to extend key agricultural tax breaks but make other changes to the narrowly passed House version of the president’s tax and spending bill, which is the centerpiece of President Trump’s agenda.  Interest expensing, 100% bonus depreciation, including on equipment, and the R & D deduction are all expected to be permanently extended past the House’s 2029 cutoff date.  Senate Finance must also decide the fate of green energy tax breaks, including the House’s 45Z credit, which is a key for sustainable aviation fuel.

“I think the House made good headway on several fronts," said Senate Majority Leader John Thune.  "But we think there are areas in the federal government, areas of waste, fraud, and abuse we can further identify, which would make that a more robust package."

It further pare the bill’s estimated 2.4 trillion-dollar cost, possibly with further Medicaid savings, or limiting state and local tax breaks or those on tips and overtime that Trump wants.  Any of those could complicate passing the president’s One Big Beautiful bill, including on its return to the House for a final vote.

SNAP Remains A Sticking Points For Democrats

Democrats, however, say they will provide no support.  Leading her party on Senate Ag, Amy Klobuchar said SNAP cuts are a big reason.

“Farmers will be losing revenue at 35 billion dollars over ten years," the Minnesota Democrat noted.  "Look at what they’re already facing: markets shrinking because of the Trump tariffs, input costs up, weather issues, cuts to the USDA, veterinarians leaving, and now this.”

Republicans Feel They Can Cross The Finish Line By July 4th

But farmers have suffered market losses for years, and Republicans argue Democrats still refuse to give up any SNAP money to boost reference prices, which the House has now done.  GOP leaders insist the tax bill is on schedule to meet the president’s goal of passing it by July 4th,, and they still expect much of the House bill to remain intact.

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