The Tax Cuts and Jobs Act of 2017 and Section 199A
The NGFA commended Congress for voting to pass and President Donald Trump for signing into the law the stakeholder-driven provisions included in the omnibus fiscal year 2018 appropriations bill that corrects the unintended consequences of Section 199A of the Tax Cuts and Jobs Act of 2017.
The provisions amending Section 199A are retroactive to Jan. 1, 2018.
Considerable concern was raised in the marketplace about how Section 199A – included during the waning hours of congressional consideration of the Tax Cuts and Jobs Act of 2017 – influenced producer marketing decisions. As an organization whose members consist of both farmer-owned cooperatives and independently organized businesses, the NGFA dedicated itself to finding a solution to the disparate and unintended consequences of the tax treatment provided to producers selling agricultural products to farmer-owned cooperatives under Section 199A of the law enacted on Dec. 22, 2017.
The solution passed in the omnibus achieves NGFA’s objective to arrive at an equitable solution that restores the competitive landscape in the marketplace that existed prior to enactment of Section 199A to preserve a competitive marketplace and marketing choices for agricultural producers.
Shareable documents on Section 199A
NGFA news updates on Section 199A
NGFA praises Section 199A fix in omnibus spending bill – By NGFA staff, March 23, 2018
House Republicans ask leadership to support ‘immediate, retroactive’ solution to Section 199A – By NGFA staff, Feb. 23, 2018
NGFA continues to press for expeditious, equitable solution to Section 199A tax issue – By Randy Gordon, NGFA President – Jan. 31, 2018
Discussions progress on finding Section 199A tax solution – By Randy Gordon, NGFA President – Jan. 17, 2018
Statement of Chuck Conner, president & CEO, National Council of Farmer Cooperatives (NCFC) and Randy Gordon, president & CEO, National Grain and Feed Association (NGFA), on Section 199A Tax Provisions – Jan. 12, 2018
Confidential NGFA Member Alert: Section 199A Provision of Tax Cuts and Jobs Act of 2017 – By Randy Gordon, NGFA President – Jan. 12, 2018