The Inflation Reduction Act is now law after President Joe Biden added his signature to the $740 billion bill that increases taxes to pay for a variety of things. Farmers have some concerns.
The measure allocates nearly $370 billion toward renewable energy subsidies. It also has health care provisions like caps on insulin for Medicare recipients and more. The measure will also increase taxes on incomes over $400,000, and imposes a 15% minimum income tax on business profits.
Illinois Farm Bureau President Richard Guebert said there are some good things in the bill, but on taxes, farmers need to “fasten their seatbelts.”
“It really gives us heartburn of what the tax implications will be for the long term,” Guebert told WMAY. “There always, I think, will be a trickle down effect to the farmgate, you might say, and the consumer.”
U.S. Rep. Cheri Bustos, D-Moline, didn’t address the tax concerns, and said other elements of the bill will help farmers.
“We’ve got oversubscribed programs on conservation. We will now have the money to incentivize more of our family farmers to practice good conservation measures,” Bustos told The Center Square.
She called the Inflation Reduction Act a “farm bill lite,” including expanding and funding expansion of biodiesel fuel.
“President Biden signed the year-round E15 executive order,” Bustos said. “Now we’ve got money to build that out.”
Guebert said the biodiesel provisions are good for farmers, but it’s hard to shake concerns about possible tax increases on farmers making more than $400,000 a year.
“Farmers usually pay a lot of taxes, more in real estate taxes and property taxes probably, but we’ll just have to see how that trickles down and impacts agriculture going forward,” Guebert said.
***Courtesy of the Illinois Radio Network***
