H.R. 9761House118th Congress (2023-2025)In Committee

To amend the Internal Revenue Code of 1986 to allow an increased dollar limitation for section 179 property placed in service in the trade or business of farming.

AI-Generated Summary

Updated January 20, 2026 at 7:12 PM UTC

The bill changes the tax code to let farmers claim a higher Section 179 deduction. It raises the maximum amount of qualifying equipment and other property to $1.5 million, reduced by any Section 179 deductions taken for non‑farm property. It also adds an automatic inflation increase for years after 2025. The changes apply to property placed in service after Dec 31 2024 and affect farmers filing federal taxes.

Key Provisions

Increases the Section 179 dollar limit for property used in farming to $1.5 million, with the limit reduced by Section 179 deductions for non‑farm property.
Updates the code to reference the new paragraph and adjusts related language accordingly.
Provides an inflation‑adjusted increase to the $1.5 million limit for taxable years beginning after 2025, using the cost‑of‑living adjustment.
Sets the effective date to property placed in service after Dec 31 2024.

Legislative Activity

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1 earlier action

HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 23, 2024

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HouseIntro Referral

Introduced in House

September 23, 2024

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

September 23, 2024

Bill Text

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Introduced in HouseIssued September 23, 2024

118th CONGRESS

2d Session

H. R. 9761

IN THE HOUSE OF REPRESENTATIVES

September 23, 2024

Mr. Lopez introduced the following bill; which was referred to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to allow an increased dollar limitation for section 179 property placed in service in the trade or business of farming.

Increased section 179 property limit for farming property

(a)

In general

Section 179(b) of the Internal Revenue Code of 1986 is amended by redesignating paragraph (6) as paragraph (7) and by inserting after paragraph (5) the following new paragraph:

(6)

Increased limitation for farming property

Notwithstanding paragraph (1), in the case of any section 179 property placed in service by the taxpayer in the trade or business of farming, the aggregate cost of such property which may be taken into account under subsection (a) for the taxable year shall not be less than an amount equal to $1,500,000, reduced by the cost of any other section 179 property which—

(A)

is taken into account by the taxpayer under subsection (a) for the taxable year, and

(B)

is placed in service by the taxpayer in a trade or business other than farming.

(b)

Conforming amendment

Section 179(b)(2) of such Code is amended by striking limitation under paragraph (1) and inserting limitations under paragraphs (1) and (6).

(c)

Inflation adjustment

Section 179(b)(7) of such Code (as redesignated by subsection (a)) is amended by redesignating subparagraph (B) as subparagraph (C) and by inserting after subparagraph (A) the following new subparagraph:

(B)

Farming property limitation

In the case of any taxable year beginning after 2025, the dollar amount in paragraph (6) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting calendar year 2024 for calendar year 2016 in subparagraph (A)(ii) thereof.

(d)

Effective date

The amendments made by this section shall apply to property placed in service after December 31, 2024.