WASHINGTON, DC – H.R. 1, also known as the One Big Beautiful Bill Act (OBBBA), made enhancements to the Farm Safety Net (see
USA Rice Daily, July 7, 2025), and significant changes to the U.S. tax code relevant to farm families. In marking “Tax Day 2026,” following is a summary of the key tax provisions.
Estate and Gift Tax The federal estate and gift tax exemption has been increased to $15 million per individual ($30 million per couple) and indexed for inflation on a permanent basis.
Section 199A – Qualified Business Income Deduction The 20 percent Qualified Business Income (QBI) deduction has been made permanent. Nearly 98 percent of farms operate as pass-through entities — sole proprietorships, partnerships, and S Corporations — and are eligible for this deduction. Phase-out thresholds apply for single filers. A new minimum QBI deduction of $400 is available to those with at least $1,000 in qualified business income.
Expensing and Depreciation The OBBBA restores 100 percent bonus depreciation for qualified property placed in service after January 19, 2025, through 2030, allowing the full cost to be deducted in the year of purchase rather than spread over multiple years. The Section 179 expensing limit has also been raised to $2.5 million, with a phase-out beginning at $4 million.
1099-MISC Reporting Threshold The reporting threshold for 1099-MISC forms has been raised from $600 to $2,000, which reduces paperwork requirements for farmers who hire temporary or seasonal workers.
Individual Tax Provisions The OBBBA makes permanent several provisions from the 2017 Tax Cuts and Jobs Act that were set to expire in 2025, including existing tax rates and brackets, the increased standard deduction, and the expanded Child Tax Credit.
“We commend the Trump Administration and Congressional leaders for acting boldly to provide critical tax relief to America’s farmers navigating tough economic times,” said Fred Zaunbrecher, a Louisiana rice farmer and chair of the USA Rice Farmers Board. “The provisions in the One Big Beautiful Bill Act will ease burdens on farm families, support vital investments in our operations, and strengthen rural communities for years to come.”