Farmers have only until December 31 to take advantage of the tax benefits associated with the accelerated depreciation schedule for farm equipment.
Under the economic recovery act, the depreciation schedule for most agricultural equipment was reduced from seven to five years until the end of 2009.
Paul Kindinger, president and CEO of the North American Equipment Dealers Association (NAEDA), said there is no guarantee the accelerated depreciation schedule will be extended again, according to Farm Industry News.
Farm groups and farm equipment dealers have been advocating for years for a reduction of the farm equipment depreciation schedule from seven to five years.
Mike Williams, COO and vice president of government relations and public policy for NAEDA, said the group will work to keep the accelerated schedule in the next tax bill rewrite, according to the publication Farm Equipment.
Senator Kent Conrad of North Dakota has sponsored legislation previously to change the tax code to the five-year depreciation schedule.
Conrad has said the current system penalizes farmers when they upgrade their farm equipment sooner than seven years.
"By shortening the depreciation period, we're encouraging farmers to make the investments they need to boost their productivity and increase farm income," Conrad said about legislation he sponsored in 2005 to change the tax code.