Section 199A Fix Still Sought

Lawmakers continue to search for a solution to the Section 199A provision in the tax reform plan that would provide a potential major benefit to agricultural cooperatives. As for whether it will be included in the short-term spending plan, House Ways and Means Chairman Kevin Brady, R-Texas, said Monday it's "too soon to tell.” The latest continuing resolution to fund the government through March 23 does not contain 199A tax-related language.Staffers and others are working on language that would include changes to a new deduction in the tax code that gives farmers incentives to sell their crops and products to cooperatives rather than other types of companies. "It’s really important that co-ops and the private sector stay at the table to work out the issue sooner rather than later. Clearly the language in the final conference has a serious flaw, so it needs to be corrected soon... I think the House version was the right approach, but we are trying to find a solution," Brady added.