Nursery cash accounting safe

From Craig Regelbrugge, AmericanHort:

Good news on the tax reform and cash accounting issue. To set the stage, one year ago, the initial House blueprint for reform would have denied many nursery growers the option to use cash accounting, and required them to maintain inventory. Fortunately, House Ways and Means Chairman Dave Camp’s recent comprehensive tax reform proposal preserves growers’ right to elect to use cash accounting, and explicitly shields nursery growers from having to maintain inventory. On April 22, AmericanHort met with House Ways and Means professional staff to thank them for their thoughtful and diligent legislative drafting efforts, and to raise one concern about language in a technical explanatory document. Staff confirmed that our concern was a drafting error and had been corrected.

While tax reform this Congress looks increasingly doubtful, explicitly preserving our member growers’ right to use cash accounting is a huge victory. After all, legislative ideas that get on paper today tend to be the starting point for renewed efforts in the future. There is still work to do in the Senate, where the Finance Committee’s draft is less favorable.