NCC Highlights Tax Day Benefits of OBBBA for Cotton Growers

MEMPHIS, Tenn. - This Tax Day, the National Cotton Council (NCC) is highlighting how the tax provisions in the One Big Beautiful Bill Act (OBBBA) provide benefits for cotton growers and the broader rural economy.

“At a time when cotton producers are facing continued pressure from high input costs and a challenging economic environment, sound tax policy matters,” said NCC Chairman Nathan Reed. “We applaud President Trump for advancing tax provisions that provide support as farmers and agribusinesses plan ahead, reinvest in their operations, and help keep family farms viable for the next generation.”

For cotton growers, OBBBA makes the 20 percent Section 199A pass-through deduction permanent, giving producers and agricultural businesses more certainty for long-term planning. The law also prevents the estate “death tax” exemption threshold from being cut in half, helping protect family farms during generational transfers. It also raises the Section 179 expensing maximum from $1.25 million to $2.5 million and restores 100 percent bonus depreciation, providing more flexibility to make critical capital investments when they are needed. 

The National Cotton Council continues to support strong farm policy, including a tax code that recognizes the realities of agriculture and supports long-term business planning, and the OBBBA’s tax provisions are a positive step in that direction.