This week, the National Corn Growers Association (NCGA) joined 39 agricultural organizations in a letter to Congressional leaders outlining key tax priorities including protecting current estate tax exemptions and preserving the step-up in basis for capital gains.
The letter comes just after President Biden proposed the American Families Plan, the second part of the President Build Back Better Plan. The plan includes over $1 trillion in new investments throughout the economy and $800 billion in tax cuts.
The $1.8 trillion plan proposes paying for the investments and tax cuts through reforms to the tax code, including ending the step-up of basis for capital gains more than $1 million ($2 million per couple). According to the White House, “the reform will be designed with protections so that family-owned businesses and farms will not have to pay taxes when given to heirs who continue to run the business.”
The Administration is expected to continue to release more details on the proposals within the American Families Plan over the next few weeks. USDA has further outlined the potential protections for family farms.
Congress will ultimately decide, and vote on, the provisions included in any infrastructure and tax legislation. Discussions on Capitol Hill regarding a package are currently taking place, and NCGA is sharing corn farmer priorities with members of the House and Senate
