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Consolidated Appropriations Act, 2018 (P.L. 115-141) Removes Unintended Incentive to Sell to Co-Ops

On March 23, 2018, the President signed into law the Consolidated Appropriations Act, 2018 (the “Act,” subsequently numbered Public Law No. 115-141). Among the many technical corrections and other changes contained in the Act is removal of the so-called “grain glitch,” a provision in the Tax Cuts and Jobs Act (P.L. 115-97, 12/22/2017) that gave farmers a new tax incentive to sell crops to cooperatives, but not to private or investor-owned grain handlers. Lawmakers indicated it was never their intention to incentivize farmers to sell to cooperatives over other grain handlers, and that the new language of Internal Revenue Code Section 199A(g) has now been amended to be similar to the prior law. Section 199A(g), as amended, is effective for tax years beginning after December 31, 2017. 

DISCLAIMER: The information provided is for general informational purposes only. This post is not updated to account for changes in the law and should not be considered tax or legal advice. This article is not intended to create an attorney-client relationship. You should consult with legal and/or financial advisors for legal and tax advice tailored to your specific circumstances.

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