By Jamie Martin
Tax provisions included in the One Big Beautiful Bill Act (OBBBA), signed into law on the Fourth of July, will officially take effect on January 1. The legislation extends and strengthens several tax measures originally enacted under President Donald Trump’s 2017 Tax Cuts and Jobs Act (TCJA), many of which were scheduled to expire or begin phasing out at the end of this year.
One of the most significant changes is the permanent extension of bonus depreciation. This provision allows businesses to deduct 100% of the cost of qualifying property in the year it is placed into service, rather than spreading deductions over multiple years. For producers making large capital investments, this offers immediate tax relief and improved cash flow.
The bill also makes the federal estate tax exemption permanent while raising it to $15 million per individual starting in tax year 2026. The exemption for 2025 sits just below $14 million and will now be indexed for inflation. Estates exceeding the exemption threshold remain subject to a 40% tax upon transfer to heirs.
Section 179 expensing limits were also increased to $2.5 million, up from $1.25 million in 2025 and well above the previously scheduled reduction to $1 million in 2026. This provision applies to business-use purchases such as machinery, equipment, and vehicles, allowing full deductions in the year of purchase.
In addition, the qualified business income deduction under Section 199A was made permanent, with the deduction rate rising to 23% in 2026 from the current 20%. The legislation also locks in lower tax rates, broader brackets, and a higher standard deduction established by the TCJA.
The National Pork Producers Council strongly backed these changes, emphasizing that predictable and equitable tax policy is essential for pork producers’ profitability, long-term stability, and business planning.
Photo Credit: pexels-nataliya-vaitkevich
Categories: National