Legislation advances for U.S. government funding and tax extenders

 From PMA's Issues Leadership

The U.S. Congress passed legislation in mid-December that funds government operations through Sept. 30, 2016. The legislation also addresses a collection of tax breaks, known as “extenders” in Washington-speak.

This omnibus bill not only provides funding for key research, pest, disease and food safety programs, but also serves as the vehicle for important policy provisions such as nutrition policy and the repeal of mandatory Country of Origin Labeling (COOL) requirements for beef and pork (See related Issues Leadership blog post ).

Among the highlights notable for the fresh produce and floral industry are:

• $7.5 million for the Animal and Plant Health Inspection Service to address citrus greening
• $104.5 million in additional funds for implementation of the Food Safety Modernization Act
• $37 million in additional funding for research programs of the National Institute of Food and Agriculture, and $11.2 million in additional funding for the Agricultural Research Service.

Furthermore, the legislation also extends certain tax provisions. It will:
 

• increase and make permanent the expensing and depreciation limitation on property purchased or repaired under Section 179 of the tax code,
• extend bonus depreciation on property acquired and placed into service during 2015-2019, and
• modify bonus depreciation to include qualified improvement property and to permit certain trees, vines, and plants bearing fruit or nuts to be eligible for bonus depreciation when planted or grafted, rather than when placed in service.

Editor's note: President Obama signed the $1.8 trillion tax and spending bill on Dec. 18, 2015.