By the National Cattlemen’s Beef Association
In July, both the House and Senate passed the “One Big Beautiful Bill” (OBBB) after several marathon voting sessions and President Trump swiftly signed the bill into law on July 4. The legislation included important cattle health provisions that will help U.S. cattle producers protect their herds and a robust tax package enabling producers to pass on their operations to the next generation. The tax package increased the Death Tax exemption to $15 million per individual or $30 million per couple, adjusted annually for inflation. This means if the value of your farm or ranch plus equipment, cattle and other assets are less than $15 million individually or $30 million as a couple, you will pay no Death Tax.
The tax package also protected the step-up in basis. When NCBA worked with Congress and the fi rst Trump administration to pass the 2017 Tax Cuts and Jobs Act (TCJA) many of the key tax provisions were set to expire at the end of 2025. That meant right after the TCJA passed, NCBA’s Government Affairs team immediately began advocating to renew these provisions and make them more permanent to bring certainty to producers. This multi-year process included meeting with lawmakers and key committee leadership, building coalitions with other agriculture and mainstreet trade associations, as well as surveying producers on how they are using these tax laws and what they would like to see in the next bill.
Producers will remember NCBA’s Tax Survey from 2024 which showed that 33% of respondents paid the Death Tax, some paying it more than once. It also showed that if Congress failed to renew the Death Tax exemption, more than 60% of survey respondents would have been negatively impacted. In the lead up to final passage, NCBA and producers across the country helped to rally support for the bill by sharing stories on how detrimental the Death Tax can be to family farms and ranches. The tax survey, coupled with stories shared on social media, gave Congressional leaders powerful ammunition to push back against misguided opposition to this bill. The key provisions secured in the bill will:
• Reimburse cattle producers for loss due to depredation by federally protected predators.
• Expand access to the livestock forage disaster program for producers experiencing drought.
• Continue to fund the feral swine eradication program.
• Bolster the “three-legged stool” protecting the cattle industry from foreign animal disease, including the National Animal Disease Preparedness and Response Program (NADPRP), the National Animal Health Laboratory Network (NAHLN), and the National Animal Vaccine and Veterinary Countermeasures Bank (NAVVCB). Th e NAVVCB currently houses emergency supplies for responding to a foot-andmouth disease outbreak.
• Increase the Death Tax exemption to $15 million per individual and $30 million per couple, adjusted for infl ation annually. Th e package also makes this exemption permanent.
• Preserve the stepped-up basis.
• Permanently increase the Section 199A Small Business deduction at 20%.
• Expand the Section 179 expensing limit from $1 million to $2.5 million.
• Restore 100% bonus depreciation permanently.
• Extend the Federal Disaster Tax Relief Act of 2023. NCBA supported this legislation since day one and commends President Trump and leaders in Congress who were instrumental in getting this bill across the finish line, greatly benefi tting U.S. cattle producers. Moving forward, the fight is not over, and there is more work to do to protect the U.S. cattle industry for generations to come.
NCBA still supports fully eliminating the Death Tax, but until then, this increased threshold, and all the other listed provisions, represent a huge victory and will protect more family cattle operations than ever before. Every person’s fi nancial situation is different and this should not be construed as professional advice. To learn more about how these tax provisions will impact your operation, please consult your CPA or tax advisor.
