As a member of Blue Diamond you qualify for and benefit from section 199 of the tax code. Blue Diamond sends you an amount you are able to deduct as an expense on your tax return. Blue Diamond passes through this deduction so you may benefit from this expense deduction.
The current tax proposal being considered in the House will end this pass through to you. It is hoped this tax treatment will be retained for cooperatives. We are not trying to save the entire section, but only the rules for cooperatives, including Blue Diamond. This means, if successful, that the pass-through expense deduction will still be available for you. In addition, the benefit you receive from export incentives like IC Disc and the state and local tax (SALT) deduction will also be eliminated. Your help is needed to save these valuable tax benefits. Please take action and contact your representative today!
Via Agricultural Council Of California
As Congress considers tax reform, it is crucial that the farming community weigh-in regarding the proposed elimination of three critical deductions, which if abolished as proposed in H.R. 1, would increase taxes on farmers. Click the link below to take action on this issue and urge Congress to protect these deductions.
Specifically, H.R. 1 proposes the following: 1) the eradication of the Section 199 deduction, 2) the repeal of state and local tax deductions, and 3) the termination of export incentives that help farmers. The impact of eliminating any one of these deductions would be a burden—but with all three combined—it will be devastating to countless family farms.
With farmers and producers experiencing many challenges, this is certainly not the time for Congress to take any action that would raise taxes on those producing our food. Rather than eradication, these important deductions must be protected.
ACT NOW—Your voice is critical at this time. With Congress moving quickly on tax reform, please click the link below to easily send a letter to your representatives in the U.S. Senate and House urging them to oppose the elimination of these important deductions.