Two tax code changes in the tax package passed last December by Congress are receiving much attention in the countryside. The first change concerns the tax treatment of producers’ sales to coops. The second concerns the loss of the Section 1031 exchanges for farm machinery and equipment. Let’s examine these changes in more detail.
The Nebraska Economic Forecasting Board (NEFAB) on Oct. 27 adjusted its state revenue forecasts downward resulting in a budget shortfall of roughly $195 million for the current budget biennium. NEFAB revenue forecasts are used by state senators to set the state spending. Senators adopted a biennial budget earlier this year, but because they are required by the constitution to balance the budget, the decrease in forecast revenue means budget adjustments will be necessary during the 2018 legislative session in order to balance.