LINCOLN, Neb. — Nebraska Farm Bureau and the state’s congressional delegation are urging Congress to act before key provisions of the 2017 Tax Cuts and Jobs Act (TCJA) expire at the end of 2025, warning that inaction could result in steep tax increases for farm families, small businesses, and rural communities.
“The uncertainty surrounding the future of these tax provisions is causing real concern,” said Nebraska Farm Bureau President Mark McHargue. “These reforms helped level the playing field for agriculture. Losing them would hit producers hard at the worst possible time.”
The TCJA, signed into law under the Trump administration, significantly revised the federal tax code, including benefits that were particularly valuable to farmers and small businesses. These included lower tax rates, expanded estate tax exemptions, and increased deductions for income and equipment purchases.
Estate Tax Changes Could Impact Family Farms
One of the most pressing concerns is the potential rollback of the estate tax exemption. Under the TCJA, the exemption doubled to more than $13.9 million per individual, or $27.9 million for couples—allowing many family farms to transfer property without triggering estate taxes. If the provision expires, the exemption could drop back to 2017 levels, near $5.5 million.
“Land values in Nebraska are high, and many family farms and ranches could be subject to the estate tax again if the exemption drops,” McHargue said. “Farm and ranch families work to build something to pass down. This could threaten that.”
Business Deductions, Depreciation Provisions at Risk
Also set to expire is the 20% qualified business income (QBI) deduction, which benefits sole proprietorships, partnerships, and S-corporations—common structures in agriculture. The loss of this deduction could significantly raise federal tax burdens for producers already coping with high input costs and interest rates.
Another expiring benefit is 100% bonus depreciation, which allows immediate write-offs on new and used equipment purchases. This provision has encouraged farmers to invest in modern machinery and infrastructure. Without action, bonus depreciation will fully phase out by 2027.
“Bonus depreciation helped us modernize our equipment without killing our cash flow. Losing that would make upgrades a lot harder,” McHargue said.
Nebraska Lawmakers Call for Extension
Nebraska’s congressional delegation is voicing strong support for renewing the TCJA provisions, citing economic pressure on working families and rural businesses.
Sen. Deb Fischer said, “Nebraska’s farmers, ranchers, and small businesses benefitted greatly from the 2017 Tax Cuts and Jobs Act. Congress must come together to make these tax cuts permanent.”
Sen. Pete Ricketts warned that expiration would amount to a $4 trillion tax hike nationwide, including an estimated $1,700 per year increase for a family of four earning $80,000.
Rep. Mike Flood called the TCJA “critical to ensuring that we get America back on track,” while Rep. Don Bacon said families could face a “devastating 20% tax increase.”
Rep. Adrian Smith, a member of the House Ways and Means Committee, emphasized the importance of the TCJA for succession planning and reinvestment by rural businesses.
A Call for Rural Consideration
McHargue said the Nebraska Farm Bureau isn’t asking for special treatment, but for a tax policy that reflects the long-term, capital-intensive nature of farming and ranching.
“This is about preserving family farms and ranches, keeping rural communities alive, and ensuring that Nebraska agriculture remains strong for generations to come,” he said.