Texas Agricultural Aviation Association | www.taaa.org
TAAA Newsletter
What The Tax Bill Means for Ag Aviation
We have received several calls regarding the passage of the major tax cut and reform legislation this week in Washington, D.C.  NAAA has put out a good article describing the possible impact on operators which is set forth below.  Obviously, it is likely to take a while before the full implications of the bill are known.

TAAA has worked very hard over the years to address state tax issues, including sales taxes on aircraft and equipment, and business franchise taxes.  Overall, Texas presents a very favorable environment for ag operators.  


via NAAA - With President Trump's signature, the biggest reform to the U.S. tax code in over 30 years is now in place. The new tax statute contains many provisions beneficial to small business, and ag aircraft operations.

Lower Tax Rates

New Corporate Tax Rate
The biggest boon to businesses, large and small, is the cutting of the corporate tax rate. The corporate tax rate will be cut from 35 percent to 21 percent starting Jan. 1, 2018. Personal service corporations would be subject to a flat 25 percent corporate tax rate subject to limitations on the amount of income qualifying for the special rate.
President Trump originally wanted 15 percent, but a cut of that size would leave no room to cut taxes anywhere else. The bills passed by the House and Senate called for a 20 percent rate, and the 21 percent rate in this bill allows space for some other deductions to be maintained.
Personal Income Taxes
The final bill retains the seven different tax brackets, lowering the tax rate in each bracket overall and doubling the standard deduction from $6,500 for individuals and $13,000 for families to $12,000 and $24,000, respectively.
However, the lowering of the overall rates and increase of the standard deduction means some tradeoffs with other deductions. The deduction of state and local property taxes will be capped at $10,000. The mortgages interest deduction will be capped at $750,000 under the new law, down from the current $1 million cap. Student loan interest will continue to be deductible, and graduate-student tuition waivers will not be considered taxable income. 

Read more at NAAA here.

TAAA is excited to offer TAAA Membership Directory advertising packages that include ad placement in the TAAA newsletter and/or on the TAAA website. The TAAA Membership Directory is sent to all TAAA members, and is available to anyone else upon request. The TAAA online newsletter is delivered via e-mail, every other week, to over 1,000 in-boxes representative of licensed aerial applicators in the state, annual convention attendees, members of the Texas Legislature, other public officials, and key stakeholders in our industry.


 Questions? Contact the TAAA office at 512-476-4405 or e-mail Susie at sshields@thetexascapitol.com

If you have not already done so, your 2018 dues are coming due! TAAA hopes to have everyone up to date as we proceed with the convention this January. 

To ensure you receive TAAA member prices when registering for the 2018 convention, please pay your 2018 dues before you register.
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January 10-12, 2018
TAAA Annual Convention and Exhibition 
Galveston, TX. 
TAAA | | lcampos@thetexascapitol.com | http://www.taaa.org
P.O. Box 684570
Austin, TX 78768