National Cattlemen March 2026 | Page 12

The 2026 tax season marks the first year under the updated tax code enacted through the One Big Beautiful Bill( OBBB), passed last July. This legislation represents one of the most significant tax reform efforts in recent years, delivering meaningful relief and long‐term certainty for cattle producers and family-owned operations. Tax reform has been a central focus for NCBA, and the final package ensures producers can continue planning, investing and transferring operations to the next generation without unexpected tax burdens.

When the OBBB was signed into law, many of the important 2017 Tax Cuts & Jobs Act provisions were not only extended but strengthened, some even made permanent. Among the most impactful changes are the permanently increased Death Tax exemptions, now set at $ 15 million for individuals and $ 30 million for married couples. The OBBB also raised the Section 179 equipment expense deduction limit to $ 2.5 million, giving producers the ability to target specific assets while saving standard depreciation for others, providing a streamlined approach to managing tax brackets.

The OBBB also retains Section 199A bonus depreciation and the stepped-up basis, both critical tools for cattle operations. 100 % upfront bonus depreciation, means all qualified property( machinery, grain bins, and certain single-purpose structures) placed in service after Jan. 19, 2025, are eligible for an immediate deduction of the full purchase price, drastically reducing taxable income in high-revenue years. The retained stepped-up basis means that when land is inherited, the basis is reset to the fair market value at the time of death, potentially

eliminating decades of capital gains tax liability for the next generation of producers.

This tax relief was the result of extensive, sustained advocacy and grassroots member engagement. NCBA spent years working with Congress to secure these wins for cattle producers, especially critical given that more than half of the House members and many Senators were not in Congress during the passage of the 2017 tax bill. NCBA’ s tax survey that featured anonymous submissions from U. S. cattle producers proved to be the most important part of the advocacy process. The results served two essential purposes: they helped NCBA identify which provisions mattered most to producers, and they provided powerful firsthand accounts that helped lawmakers understand the real-world tax burdens facing family operations. Tax policy can be extremely complicated, and it is the personal stories that make these issues real for politicians in Washington, D. C.

By codifying these tax provisions, Congress and the Trump administration created more opportunities for profitability and long-term stability, protecting thousands of family farms and ranches. With these provisions in place, producers this year and beyond will now be able to keep more of what they earn and reinvest in their own operations. While there is still more work to do to fully repeal the Death Tax, NCBA will continue working with Congress and the administration to protect and strengthen family-owned cattle operations. NCBA also encourages producers to consult with a tax professional to ensure they are taking full advantage of the updated tax code.

12 MARCH 2026 www. NCBA. org