To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes.

Billionaires Surtax- various proposals Individual taxes- Surtax, increase rates on high income, return top rate to 39.6%, close loopholes, Mark to Market Corporate tax rates, close loopholes Supporting Americans with Lower Taxes (SALT) Act Earned income tax credits, child tax credits HR 2549, S 1157- Tax Fairness for Workers Act, Individual tax deduction for union dues S 4192, HR 8448- No Tax Breaks for Union Busting Act HR 2337- Public Servants Protection and Fairness Act of 2021 Tax Filing Simplification Act HR 5376, HR 1785, S 714- International tax incentives for outsourcing and rates, No Tax Breaks for Outsourcing Act HR 5376, HR 2576, S 994- Estate Taxes, For the 99.5% Act HR 5376, S 510, HR 1459- Ultra-Millionaire Tax Act of 2021 HR 3805, S 2028- Millionaires Surtax Act HR 5376, S 2617, HR 1068, S 1598- Carried interest tax loophole HR 7502- Babies Over Billionaires Act HR 8558- Billionaire Minimum Income Tax Deemed realization (1 time) at death/transfer for large assets (e.g. >$1 B) HR 2286- Deemed Realization of capital gains HR 5376, HR 1116, HR 1200, S 1857, S 1788- Increase funds for IRS tax enforcement and services, IRS Enhancement and Tax Gap Reduction Act of 2021, Stop CHEATERS Act, Restoring the IRS Act S 1652- Paying a Fair Share Act Close NIIT and SECA tax loopholes- use revenue for Medicare HR 5376, S 2680, HR 4940- Corporate tax: minimum rate (e.g. 15%), Real Corporate Profits Tax Act of 2021 General Business Tax Credits refundability Tax extenders General, R&D Tax Credit, Refundable NOL Carryover Opportunity Zone Reform Act

Client expense: $470,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, White House Office

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose the repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

S. 994, H.R. 2576 - For the 99.9 Percent Act S. 547, H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021 H.R.822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021 S.617 - 117th Congress Death Tax Repeal Act of 2021 Public Law 117-2 H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. S. 1770 - Retirement Security and Savings Act of 2021 H.R. 2954 - Securing a Strong Retirement Act of 2021 Issues related to retirement S Con Res 14 HR 5376, Build Back Better Act S 4353 - Rise & Shine Act EARN Act H.R. 5376 - Inflation Reduction Act of 2022 - Public Law No: 117-169

Client expense: $410,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

S. 994/H.R. 2576 - For the 99.9 Percent Act; S. 547/H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021; H.R. 822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021; S. 617 - 117th Congress Death Tax Repeal Act of 2021; American Rescue Plan Act of 2021 (PL 117-2); H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. 1770 - Retirement Security and Savings Act of 2021; H.R. 2954 - Securing a Strong Retirement Act of 2021; Issues related to retirement; S. Con. Res. 14; H.R.5376 - Inflation Reduction Act of 2022 - Public Law No: 117-169; S. 4353 - RISE & SHINE Act; EARN Act.

Client expense: Not reported · Firm income: $60,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Extension and Expansion of Credits for Paid Sick and Family Leave and Employee Retention HR1319 - The American Rescue Plan Act of 2021 State and Local Tax Deduction HR202 - SALT Fairness Act HR613 - SALT Deductibility Act HR946 - SALT Act HR2439 - SALT Fairness for Working Families Act HR3925 - SHELTER Act HR5565 - Banana Stand Money Act S85 - SALT Deductibility Act S804 - SALT Deduction Fairness Act Communications with the House of Representatives re: the SALT cap. Section 199A Deduction HR1381 - Main Street Certainty Act S480 - Main Street Tax Certainty Act S2387, the Small Business Tax Fairness Act Communications with the House Ways & Means Committee and the Senate Finance Committee opposing the repeal of the Section 199A Qualified Business Interest Deduction. Opportunity Zones HR970 - The Opportunity Zone Extension Act HR4177 - The Expanding Opportunity Zones Act Communications with the U.S. Senate in support of extending the Qualified Opportunity Zone program deadlines. Section 1031 Like-Kind Exchanges HR1742 - The Real Estate Exchange Fairness Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of retaining Section 1031 Like-Kind Exchanges. Neighborhood Homes Investment Act S98 - The Neighborhood Homes Investment Act HR2143 - The Neighborhood Homes Investment Act Conversations with the U.S. House of Representatives and the U.S. Senate supporting bolstering the NHIA. First time homebuyer tax credits HR2863 - First-Time Homebuyer Act of 2021 Conversations with the U.S. House of Representatives and the U.S. Senate in support of a first-time homebuyer tax credit. Low Income Housing Tax Credit HR4204, the Affordable House Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of bolstering the Low Income Housing Tax Credit. Increasing Housing Supply Conversations with the U.S. House of Representatives and the U.S. Senate in support of tax incentives to create more housing supply and more housing options for first-time homebuyers. Communications with the House and Senate regarding legislative proposals to convert underused/abandoned commercial properties into residential real estate Estate Tax Reform HR1712 - Death Tax Repeal Act S617 - Death Tax Repeal Act Affordable Housing HR2573 - Affordable Housing Credit Improvement Act of 2021 HR2768 - American Housing and Economic Mobility Act S1136 - Affordable Housing Credit Improvement Act of 2021 S1368 - American Housing and Economic Mobility Act Commercial Real Estate Conversion Tax Credits HR4759 - The Revitalizing Downtowns Act S2511 - The Revitalizing Downtowns Act Carried Interest HR1068 - The Carried Interest Fairness Act S1598 - Carried Interest Fairness Act of 2021 Capital Gains Discussions regarding proposed legislation, the Sensible Taxation and Equity Promotion (STEP) Act. Communications with the House and Senate opposing increases to the capital gains tax rate and taxing of unrealized capital gains Energy Efficiency Tax Incentives HR2346 - E-QUIP Act Tax Credit for Disaster Mitigation/Expenses S1805 - Shelter Act REITs HR3123 - Parity for Non-Traded REITs Act Partnership Tax Rules Communications with the Senate Finance Committee about proposed legislation to change the partnership tax rules Tax Reform HR2275 - The Mortgage Debt Tax Forgiveness Act HR2276 - the Mortgage Insurance Tax Deduction Act HR2286 - A bill to treat property transferred by gift or at death as sold for fair market value S126 - A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other purposes. Communications with the House and Senate opposing changes to the "step-up in basis" provision and in support of increasing the section 121 IRC exclusion. Infrastructure Proposals HR5376 - Build Back Better Act Communications with the House and Senate regarding the pay-fors in the American Rescue Plan and the American Jobs Plan The Historic Tax Credit HR2266 - The Historic Tax Credit Growth and Opportunity Act HR2294 - The Historic Tax Credit Growth and Opportunity Act COVID-19 Recovery Communications with the U.S. House of Representatives and the U.S. Senate regarding the Coronavirus Recovery Fund Housing Tax Credit Statute Adjustment. Depreciation of Real Property HR722 9 - Renewing Investment in American Workers and Supply Chains Act Tax incentives for housing Discussions with the House and Senate regarding policy proposals to give tax incentives for the production of residential units.

Client expense: $14,820,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Billionaires Income Tax; H.R. 2286, To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; IRS enforcement.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Biden Made in America Tax Plan Billionaires Surtax, various proposals Windfall Elimination Tax proposals HR 5376, HR 1785, S 714- international tax incentives for outsourcing and rates No Tax Breaks for Outsourcing Act HR 5376, HR 2576, S 994- Estate Tax Reform For the 99.5% Act HR 5376, S 510, HR 1459- Ultra-Millionaire Tax Act of 2021 HR 3805, S 2028- Millionaires Surtax Act HR 5376, S 2617, HR 1068, S 1598- Carried interest tax loophole various bills- Taxing Millionaires and Billionaires various bills- Corporate Tax Reform Earned income tax credits, child tax credits HR 2549, S 1157- Individual tax deduction for union dues S 4192- No Tax Breaks for Union Busting Act S 3701- Social Security 2100: A Sacred Trust, GPO/WEP HR 2337- Public Servants Protection and Fairness Act of 2021 HR 7502- Babies over Billionaires Act Billionaire Minimum Income Tax Deemed realization (1 time) at death/transfer for large assets (e.g. >$1B) HR 2286- Deemed Realization of capital gains HR 5376, HR 1116- Increase funds for IRS for tax enforcement and services HR 1200, S 1857, S 1788- IRS Enhancement and Tax Gap Reduction Act of 2021; Stop CHEATERS Act; Restoring the IRS Act S 1652- Paying a Fair Share Act Individual taxes- Surtax, increase rates on high income, return top rate to 39.6%, close loopholes, Mark to Market Close NIIT and SECA tax loopholes- use revenue for Medicare Corporate tax- higher rates, close loopholes, raise revenue, Minimum tax (e.g. 15%) S 2680, HR 4940- Real Corporate Profits Tax Act of 2021 HR 6847- Individual itemized tax deduction for SALT, Supporting Americans with Lower Taxes (SALT) Act Tax Fairness for Workers Act General Business Tax Credits refundability Tax extenders, R&D Tax Credit, Refundable NOL Carryover Opportunity Zone Reform Act Simplifying Federal Tax Filing Procedures, Tax Filing Simplification Act HR 3802, HR 7061- Big Oil Windfall Profits Tax Space Tax Act

Client expense: $510,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of, White House Office

S. 994, H.R. 2576 - For the 99.9 Percent Act S. 547, H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021 H.R.822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021 S.617 - 117th Congress Death Tax Repeal Act of 2021 Public Law 117-2 H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. S. 1770 - Retirement Security and Savings Act of 2021 H.R. 2954 - Securing a Strong Retirement Act of 2021 Issues related to retirement S Con Res 14 HR 5376, Build Back Better Act S 4353 - Rise & Shine Act EARN Act

Client expense: $410,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

S. 994/H.R. 2576 - For the 99.9 Percent Act; S. 547/H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021; H.R. 822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021; S. 617 - 117th Congress Death Tax Repeal Act of 2021; American Rescue Plan Act of 2021 (PL 117-2); H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. 1770 - Retirement Security and Savings Act of 2021; H.R. 2954 - Securing a Strong Retirement Act of 2021; Issues related to retirement; S. Con. Res. 14; H.R. 5376 - Build Back Better Act; S. 4353 - RISE & SHINE Act; EARN Act.

Client expense: Not reported · Firm income: $60,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Extension and Expansion of Credits for Paid Sick and Family Leave and Employee Retention HR1319 - The American Rescue Plan Act of 2021 State and Local Tax Deduction HR202 - SALT Fairness Act HR613 - SALT Deductibility Act HR946 - SALT Act HR2439 - SALT Fairness for Working Families Act HR3925 - SHELTER Act HR5565 - Banana Stand Money Act S85 - SALT Deductibility Act S804 - SALT Deduction Fairness Act Communications with the House of Representatives re: the SALT cap. Section 199A Deduction HR1381 - Main Street Certainty Act S480 - Main Street Tax Certainty Act S2387, the Small Business Tax Fairness Act Communications with the House Ways & Means Committee and the Senate Finance Committee opposing the repeal of the Section 199A Qualified Business Interest Deduction Opportunity Zones HR970 - The Opportunity Zone Extension Act HR4177 - The Expanding Opportunity Zones Act Communications with the U.S. Senate in support of extending the Qualified Opportunity Zone program deadlines. Section 1031 Like-Kind Exchanges HR1742 - The Real Estate Exchange Fairness Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of retaining Section 1031 Like-Kind Exchanges. Neighborhood Homes Investment Act S98 - The Neighborhood Homes Investment Act HR2143 - The Neighborhood Homes Investment Act Conversations with the U.S. House of Representatives and the U.S. Senate supporting bolstering the NHIA. First time homebuyer tax credits HR2863 - First-Time Homebuyer Act of 2021 Conversations with the U.S. House of Representatives and the U.S. Senate in support of a first-time homebuyer tax credit. Low Income Housing Tax Credit HR4204, the Affordable House Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of bolstering the Low Income Housing Tax Credit. Increasing Housing Supply Conversations with the U.S. House of Representatives and the U.S. Senate in support of tax incentives to create more housing supply and more housing options for first-time homebuyers. Communications with the House and Senate regarding legislative proposals to convert underused/abandoned commercial properties into residential real estate Estate Tax Reform HR1712 - Death Tax Repeal Act S617 - Death Tax Repeal Act Affordable Housing HR2573 - Affordable Housing Credit Improvement Act of 2021 HR2768 - American Housing and Economic Mobility Act S1136 - Affordable Housing Credit Improvement Act of 2021 S1368 - American Housing and Economic Mobility Act Commercial Real Estate Conversion Tax Credits HR4759 - The Revitalizing Downtowns Act S2511 - The Revitalizing Downtowns Act Carried Interest HR1068 - The Carried Interest Fairness Act S1598 - Carried Interest Fairness Act of 2021 Capital Gains Discussions regarding proposed legislation, the Sensible Taxation and Equity Promotion (STEP) Act. Communications with the House and Senate opposing increases to the capital gains tax rate and taxing of unrealized capital gains Energy Efficiency Tax Incentives HR2346 - E-QUIP Act Tax Credit for Disaster Mitigation/Expenses S1805 - Shelter Act REITs HR3123 - Parity for Non-Traded REITs Act Partnership Tax Rules Communications with the Senate Finance Committee about proposed legislation to change the partnership tax rules Tax Reform HR2275 - The Mortgage Debt Tax Forgiveness Act HR2276 - the Mortgage Insurance Tax Deduction Act HR2286 - A bill to treat property transferred by gift or at death as sold for fair market value S126 - A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other purposes. Communications with the House and Senate opposing changes to the "step-up in basis" provision Infrastructure Proposals HR5376 - Build Back Better Act Communications with the House and Senate regarding the pay-fors in the American Rescue Plan and the American Jobs Plan The Historic Tax Credit HR2266 - The Historic Tax Credit Growth and Opportunity Act HR2294 - The Historic Tax Credit Growth and Opportunity Act COVID-19 Recovery Communications with the U.S. House of Representatives and the U.S. Senate regarding the Coronavirus Recovery Fund Housing Tax Credit Statute Adjustment. Depreciation of Real Property HR722 9 - Renewing Investment in American Workers and Supply Chains Act

Client expense: $12,140,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

Revenues in Build Back Better; H.R. 7502, Babies over Billionaires Act of 2022; Billionaires Income Tax; S. 2028, Millionaires Surtax Act; H.R. 1785/S. 714, No Tax Breaks for Outsourcing Act; H.R. 2286, To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. ___, To amend the Internal Revenue Code of 1986 to impose a surtax on high income individual; IRS enforcement.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

TAX AND SPENDING POLICY Build Back Better Act: Opposed the legislation, and variation of proposals that raise taxes on small-to-mid size businesses. Specifically, in Build Back Better: Expressed concern and opposition to the various tax increases on SMBs, the size of the spending package and its impact on inflation, price controls on drugs in the legislation, and regulatory initiatives that would raise costs for small employers in the workplace. Tax Cuts and Jobs Act (TCJA): Continue to express support for the permanency of various provisions of the TCJA including Section 199A, lower personal tax rates, expensing provisions and estate tax changes. Main Street Certainty Act, H.R. 1381/S. 480: Continue to support the advancement of this bill to make permanent the 20% small business deduction in the Tax Cuts and Jobs Act. Renewing Investment in American Workers and Supply Chains Act, H.R. 7229/S.4012: Support this legislation to allow accelerated depreciation for all structures. Stepped-up Basis: Continue to oppose efforts to eliminate stepped-up basis, as included within the Sensible Taxation and Equity Promotion (STEP) Act in the Senate and House, H.R. 2286. REGULATION AND COMPETITION POLICY Fair and Open Competition Act, S. 403/H.R. 1284: Support the legislation, which would prevent the Administration from using project labor agreement (PLAs) in federal procurement contracts. Project Labor Agreements (PLAs): Signaled opposition to President Bidens Executive Order on the use of PLAs on federal procurement projects, including the bipartisan infrastructure package. Employee Rights Act, S.3889: Supported the bill introduced by Senator Tim Scott to protect the status of independent contractors. New Overtime Rules: Expressed concern about the consideration of changing overtime rules, and urged Department of Labor Secretary and his team to engage small businesses on this issue as they consider revising rules. DOLs Vax and Text Mandate: Expressed support for the Department of Labors (DOLs) Occupational Health and Safety Administration (OSHA) announcement about the withdrawal of the vaccine and testing emergency temporary standard for employers with 100 or more workers as an enforceable emergency temporary standard. President Biden Competition Executive Order: Continue to express concerns about the premise and actions behind the EO to regulate and micro-manage various sectors of the economy including technology, energy, bio-pharmaceuticals, telecommunications, railroads and other sectors that are dominated by small-to-mid-size businesses (SMBs). Targeted Tech Legislation and Anti-Trust: Continue to express concerns about the impact and unintended consequences of legislation, regulation and anti-trust efforts at the Federal Trade Commission (FTC) aimed at big tech and how it may impact small business access to markets and capital, and the entrepreneurial and innovation ecosystem in general. American Innovation and Online Choice Act, S.2992: Oppose the Senate legislation. Platform Competition and Opportunity Act, H.R. 3826/S.3197: Oppose the Senate legislation. 5G in the C-Band: Expressed concerns about the delay of the rollout of 5G using the c-band, and encouraged federal agencies to communicate and resolve the issue. Energy and Gas Prices: Expressed general concern that policies restricting development at home are contributing to higher energy prices. Electronic Payments: Voiced concern about new regulations on the payments system, specifically credit routing requirements and how they undermine payment-systems innovation that has provided small businesses a lifeline during the pandemic. Privacy Policy and Legislation: Support a national framework for privacy that is inclusive and equitable to all industries. Forced Arbitration Injustice Repeal (FAIR) Act, H.R. 963: Opposed this legislation that would which would effectively ban arbitration provisions in private contracts. Reciprocal Switching: Filed comments before the Surface Transportation Board against the consideration of a rule promoting forced/switching - forced/access. ITC Reform: Expressed support for reforming practices at the International Trade Commission (ITC) such as those embedded within the Advancing Americas Interests Act, which would help stop the abuse of the system by patent trolls. AFFORDABLE AND COMPETITIVE HEALTH COVERAGE Affordability/More Choices: Continue to urge members of Congress and the Administration to advance market-oriented reforms that will lower health coverage costs for small businesses and increase choices in the marketplace. Oppose efforts, generally, to impose new mandates and taxes that will add to small business costs and reduce access to health care. Price Controls on Drugs: Continue to express opposition to efforts that place price controls on drugs either through Medicare negotiation, an international pricing mechanism, drug importation, and the misdirected effort to use march-in rights under the Bayh-Dole Act. Virtual Health Care and Telehealth: Urged Congress to reinstate virtual care access advanced during COVID-19 that enabled employers and health plans to provide pre-deductible coverage for telehealth services for individuals with HDHP-HSAs. ACCESS TO BROADBAND NTIA Rules on the Infrastructure Package: Filed Comments before the National Telecommunications and Information Administration on the Broadband Equity, Access, and Development (BEAD) and Digital Equity Planning Grant programs in the infrastructure package and urged the adoption of simple, transparent rules and common-sense principles to ensure the effectiveness of these programs in delivering broadband to those lacking access, and to avoid waste and abuse of funds. INTELLECTUAL PROPERTY RIGHTS AND PROTECTIONS World Health Organization COVID IP Waiver: Continued to express opposition to the Biden Administrations support of a petition before the World Trade Organization that would waive vital intellectual property (IP) rights for COVID-19 vaccines and US innovators, which would essentially undercut the American IP rights. Bayh-Dole Act: Continue to express support for the principals and rational behind Bayh-Dole (which strengthened IP rights) and against effort to undermine its effectiveness such as the use of march-in rights to take away IP protections. NOMINATIONS DOL Wage and Hour Nominee: Continue to express opposition to and concern about the candidacy of David Weil as DOL Wage and Hour Administrator, and his Senate confirmation.

Client expense: $45,000 · Firm income: Not reported

Government targets: Federal Communications Commission (FCC), HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), Natl Telecommunications & Information Administration (NTIA), Natl Transportation Safety Board (NTSB), President of the U.S., SENATE

Biden Made in America Tax Plan Paid Family Medical Leave Billionaires Surtax- various proposals HR 5376- Income tax on extremely high incomes; Billionaires Income Tax; Babies Over Billionaires Act (Deemed realization on individuals with sizable assets or large unrealized capital gains) S 3701- WEP/GPO; Windfall Elimination Tax; Social Security 2100: A Sacred Trust HR 5376, HR 1785, S 714- International tax incentives for outsourcing and rates; No Tax Breaks for Outsourcing Act HR 5376, HR 2576, S 994- Estate Taxes, For the 99.5% Act HR 5376, S 510, HR 1459- Ultra-Millionaire Tax Act of 2021 HR 3805, S 2028- Millionaires Surtax Act HR 5376, S 2617, HR 1068, S 1598- Carried interest tax loophole Deemed realization (one-time) at death or transfer for large assets (e.g. <$1,000,000,000) HR 2286- Deemed Realization of capital gains HR 5376, HR 1116, HR 1200, S 1857, S 1788- Increased federal funding of IRS to strengthen tax enforcement and services; IRS Enhancement and Tax Gap Reduction Act of 2021; Stop CHEATERS Act; Restoring the IRS Act 28% cap on value of individual itemized deductions 20% deduction for business owners' pass through income to individual taxes S 1652- Paying a Fair Share Act Individual taxes: Surtax; increase rates on high income; return top rate to 39.6%; close loopholes; Mark to Market Close NIIT and SECA tax loopholes and delicate revenue to fund Medicare Corporate tax- higher rates; close loopholes; raise revenue; minimum rate (e.g. 15%) S 2680, HR 4940- Real Corporate Profits Tax Act of 2021 HR 6847- Individual tax itemized deduction for state and local taxes (i.e. SALT) Supporting Americans with Lower Taxes Act (SALT Act) Earned income tax credits, child tax credits HR 2549, S 1157- Tax Fairness for Workers Act, Individual tax deduction for union dues General Business Tax Credits refundability Tax extenders generally, R&D Tax Credit, Refundable NOL Carryover Opportunity Zone Reform Act HR 2337- Public Servants Protection and Fairness Act of 2021 Simplifying Federal Tax Filing Procedures S 3802, HR 7061- Big Oil Windfall Profits Act Space Tax Act

Client expense: $590,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of, White House Office

S. 994, H.R. 2576 - For the 99.9 Percent Act S. 547, H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021 H.R.822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021 S.617 - 117th Congress Death Tax Repeal Act of 2021 Public Law 117-2 H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. S. 1770 - Retirement Security and Savings Act of 2021 H.R. 2954 - Securing a Strong Retirement Act of 2021 Issues related to retirement S Con Res 14 HR 5376, Build Back Better Act

Client expense: $600,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

S. 994/H.R. 2576 - For the 99.9 Percent Act; S. 547/H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021; H.R. 822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021; S. 617 - 117th Congress Death Tax Repeal Act of 2021; American Rescue Plan Act of 2021 (PL 117-2); H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. 1770 - Retirement Security and Savings Act of 2021; H.R. 2954 - Securing a Strong Retirement Act of 2021; Issues related to retirement; S. Con. Res. 14; HR 5376 - Build Back Better Act.

Client expense: Not reported · Firm income: $60,000

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. We are thankful Congressman Mann lead an effort in a Sense of the House to oppose repeal of stepped up basis. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $30,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 1068 -Carried Interest Fairness Act of 2021 H.R. 1321 -NMTC Extension Act of 2021 H.R. 1381 -Mainstreet Tax Certainty Act H.R. 1483 -REHAB Act of 2021 H.R. 1977 -Enhancing Credit Opportunities in Rural America Act H.R. 2143 -Neighborhood Homes Investment Act H.R. 2188 -Reopening America by Supporting Workers and Businesses Act H.R. 2189 -State Tax Freedom Act H.R. 2286 -taxes property transferred by gift or death as sold at market value H.R. 2288 -Investing in Our Communities Act H.R. 2294 -Historic Tax Credit Growth and Opportunity Act H.R. 2439 -SALT Fairness for Working Families Act H.R. 2558 -ALIGN Act H.R. 2573 -Affordable Housing Credit Improvement Act H.R. 2768 -American Housing and Economic Mobility Act of 2021 H.R. 2863 -First Time Homebuyer Act H.R. 3123 -Parity for Non-Traded REITS Act H.R. 3178 -Estate Tax Rate Reduction Act H.R. 3265 -Middle Class Savings Act H.R. 3324 -Incentivize Residential Energy Efficiency Act H.R. 3357 -Rural Jobs Act H.R. 3725 -Relief and Equity Through Small Business Tax Act H.R. 3805 -Millionaires Surtax Act H.R. 3903 -Tax Fairness Act H.R. 4165 -Uplifting First-Time Homebuyers Act of 2021 H.R. 4177 -Expanding Opportunity Zones Act H.R. 4940 -Real Corporate Profits Tax Act of 2021 H.R. 5376 -Build Back Better Act S. 98 -Neighborhood Homes Investment Act S. 456 -New Markets Tax Credit Extension Act of 2021 S. 480-Mainstreet Tax Certainty Act S. 1027-Tax Assistance for Crumbling Foundations Act S. 1136-Affordable Housing Credit Improvement Act S. 1166-Align Act S. 1368-American Housing and Economic Mobility Act S. 1403-Move America Act S. 1479-Home Lead Safety Credit Improvement Act S. 1499-REPAIR Act S. 1519-Save Hotel Jobs Act S. 1598-Carried Interest Fairness Act of 2021 S. 1627-Estate Tax Reduction Act S. 1652-Paying Fair Share Act S. 1653-SMART Act S. 1671-Rural Jobs Act S. 1753-Home Energy Savings Act S. 1768-Hope for HOMES Act S. 1805-SHELTER Act S. 2028-Millionaires Surtax Act S. 2234-Affordable Homes Act S. 2266-Historic Tax Credit Growth and Opportunity Act S. 2680-Real Corporate Profits Tax Act of 2021 S. 2820-DASH Act

Client expense: $590,000 · Firm income: Not reported

Government targets: Federal Housing Finance Agency (FHFA), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), SENATE, White House Office

H.R. 1068 -Carried Interest Fairness Act of 2021 H.R. 1321 -NMTC Extension Act of 2021 H.R. 1381 -Mainstreet Tax Certainty Act H.R. 1483 -REHAB Act of 2021 H.R. 1977 -Enhancing Credit Opportunities in Rural America Act H.R. 2143 -Neighborhood Homes Investment Act H.R. 2188 -Reopening America by Supporting Workers and Businesses Act H.R. 2189 -State Tax Freedom Act H.R. 2286 -taxes property transferred by gift or death as sold at market value H.R. 2288 -Investing in Our Communities Act H.R. 2294 -Historic Tax Credit Growth and Opportunity Act H.R. 2439 -SALT Fairness for Working Families Act H.R. 2558 -ALIGN Act H.R. 2573 -Affordable Housing Credit Improvement Act H.R. 2768 -American Housing and Economic Mobility Act of 2021 H.R. 2863 -First Time Homebuyer Act H.R. 3123 -Parity for Non-Traded REITS Act H.R. 3178 -Estate Tax Rate Reduction Act H.R. 3265 -Middle Class Savings Act H.R. 3324 -Incentivize Residential Energy Efficiency Act H.R. 3357 -Rural Jobs Act H.R. 3725 -Relief and Equity Through Small Business Tax Act H.R. 3805 -Millionaires Surtax Act H.R. 3903 -Tax Fairness Act H.R. 4165 -Uplifting First-Time Homebuyers Act of 2021 H.R. 4177 -Expanding Opportunity Zones Act H.R. 4940 -Real Corporate Profits Tax Act of 2021 H.R. 5376 -Build Back Better Act S. 98 -Neighborhood Homes Investment Act S. 456 -New Markets Tax Credit Extension Act of 2021 S. 480-Mainstreet Tax Certainty Act S. 1027-Tax Assistance for Crumbling Foundations Act S. 1136-Affordable Housing Credit Improvement Act S. 1166-Align Act S. 1368-American Housing and Economic Mobility Act S. 1403-Move America Act S. 1479-Home Lead Safety Credit Improvement Act S. 1499-REPAIR Act S. 1519-Save Hotel Jobs Act S. 1598-Carried Interest Fairness Act of 2021 S. 1627-Estate Tax Reduction Act S. 1652-Paying Fair Share Act S. 1653-SMART Act S. 1671-Rural Jobs Act S. 1753-Home Energy Savings Act S. 1768-Hope for HOMES Act S. 1805-SHELTER Act S. 2028-Millionaires Surtax Act S. 2234-Affordable Homes Act S. 2266-Historic Tax Credit Growth and Opportunity Act S. 2680-Real Corporate Profits Tax Act of 2021 S. 2820-DASH Act

Client expense: $660,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT), White House Office

TAX AND SPENDING POLICY Build Back Better Act: Opposed the legislation. Specifically, in Build Back Better: Expressed concern and opposition to the various tax increases on SMBs, the size of the spending package and its impact on inflation, new powers provided to the IRS that would invade small business-taxpayer privacy, and price controls on drugs in the legislation. Tax Cuts and Jobs Act (TCJA): Continue to express support for the permanency of various provisions of the TCJA including Section 199A, lower personal tax rates, expensing provisions and estate tax changes. Main Street Certainty Act, H.R. 1381/S. 480: Support passage to make permanent the 20% small business deduction in the Tax Cuts and Jobs Act. Stepped-up Basis: Opposed efforts to eliminate stepped-up basis, as included within the Sensible Taxation and Equity Promotion (STEP) Act in the Senate and House, H.R. 2286. REGULATION AND COMPETITION POLICY President Biden Competition Executive Order: Continue to express concerns about the premise and actions behind the EO to regulate and micro-manage various sectors of the economy including technology, energy, bio-pharmaceuticals, telecommunications, railroads and other sectors that are dominated by small-to-mid-size businesses (SMBs). Targeted Tech Legislation and Anti-Trust: Continue to express concerns about the impact and unintended consequences of legislation, regulation and anti-trust efforts at the Federal Trade Commission (FTC) aimed at big tech and how it may impact small business access to markets and capital, and the entrepreneurial and innovation ecosystem in general. American Innovation and Online Choice Act: Oppose the Senate legislation. Platform Competition and Opportunity Act: Oppose the Senate legislation. 5G using the C-Band: Expressed concerns about the delay of the rollout of 5G using the c-band, and encouraged federal agencies to communicate and resolve the issue. Energy and Gas Prices: Expressed general concern that policies restricting development at home are contributing to higher energy prices. SBA Direct Lending: Opposed policies pushing direct lending by the Small Business Administration. Supported legislation introduced by Rep. Blain Luetkemeyer (R-MO) prohibiting direct government lending. Electronic Payments: Voiced concern about new regulations on the payments system, specifically credit routing requirements and how they undermine payment-systems innovation that has provided small businesses a lifeline during the pandemic. False Claims Amendments Act of 2021, S. 2428. Expressed concerns about the legislation without a full hearing. Supported the Cotton Amendment to S. 2428, which would require a full GAO study on the effectiveness of the False Claims Act before taking action. Privacy Policy and Legislation: Support a national framework for privacy that is inclusive and equitable to all industries. Affordable and Competitive Health Coverage Affordability/More Choices: Continue to urge members of Congress and the Administration to advance market-oriented reforms that will lower health coverage costs for small businesses and increase choices in the marketplace. Oppose efforts, generally, to impose new mandates and taxes that will add to small business costs and reduce access to health care. Price Controls on Drugs: Continue to express opposition to efforts that place price controls on drugs either through Medicare negotiation, an international pricing mechanism, or drug importation. NOMINATIONS Nomination of Reta Jo Lewis as President of U.S. Export-Import Bank: Supported the nomination. DOL Wage and Hour Nominee: Continue to express opposition to and concern about the candidacy of David Weil as DOL Wage and Hour Administrator, and his Senate confirmation. TESTIMONY Testified before House Small Business Committee on Entrepreneurship in the New Economy, and policies to support startup success such as tax simplicity and relief, less regulation and a more stable policy climate overall that would promote business and investor certainty.

Client expense: $35,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R.133 - Consolidated Appropriations Act, 2021; support for agriculture and rural communities H.R.1393 - Justice for Black Farmers Act of 2021; support for civil rights reforms at the U.S. Department of Agriculture, land grants for black farmers, strengthening of local and regional food systems, and reform to the Packers and Stockyards Act H.R.1603 - Farm Workforce Modernization Act of 2021; Support for agriculture workforce and immigration reform H.R.2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; opposition to elimination of step-up in basis H.R.1319 - American Rescue Plan Act of 2021; issues pertaining to commodity procurement, grants and loans to processing facilities, overtime fee relief for meatpacking facilities, assistance for socially-disadvantaged farmers and ranchers, rural health care, vaccine distribution, nutrition assistance, and Small Business Administration pandemic relief programs. H.R.2820 - Growing Climate Solutions Act; to authorize USDA to establish a volutnary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into volutnary environmental credit markets for farmers H.R.2803 -AgricultureResilienceAct; to promote emissions reductions in agriculture, improve soil health, enhance resilience, and create new market opportunities H.R.2866 - America Grows Act of 2021; to increase funding for public agriculture research and economics H.R.5305 - Making continuing appropriations for the fiscal year ending September 30, 2022, and for providing emergency assistance, and for other purposes; support for funding farm programs, support for disaster assistance, and reauthorization of livestock mandatory reporting. H.R.3684 - Infrastructure Investment and Jobs Act; support for infrastructure investments in rural areas including for broadband and high-speed internet, transportation, western water infrastructure, and for watershed resilience. H.R.267 - 2020 WHIP+ Reauthorization Act; support for the Wildfire and Hurricane Indemnity Program Plus to help producers whose crops were damaged by disasters H.R.5376 - To provide for reconciliation pursuant to title II of S. Con. Res. 14; support for investments in agriculture conservation and climate-smart agriculture, clean energy, rural development, agriculture research, child nutrition, and debt relief. H.R.5609 - Cattle Contract Library Act of 2021; support for USDA to establish and maintain a library or catalog of each type of contract offered by packers to producers for the purchase of fed cattle H.R.5992 - Cattle Price Discovery and Transparency Act of 2021; support for increasing price discovery in cattle markets. S.278 Emergency Relief for Farmers of Color Act of 2021, to require the Secretary of Agriculture to provide assistance for socially disadvantaged farmers and ranchers; debt forgiveness on Farm Service Agency loans S.300 - Justice for Black Farmers Act of 2021; support for civil rights reforms at the U.S. Department of Agriculture, land grants for black farmers, strengthening of local and regional food systems, and reform to the Packers and Stockyards Act S.949 - A bill to amend the AgriculturalMarketing Act of 1946 to foster efficientmarkets and increase competition and transparency among packers that purchase livestock from producers; support for strengthening cattle cash markets S.994 - A billtoamendtheInternalRevenueCodeof1986toreinstateestateand generation-skipping taxes, and for other purposes; opposition to changes to the estate tax S.543 - Cattle Market Transparency Act of 2021; support for increasing transparency in cattle markets S.1251 - Growing Climate Solutions Act; to authorize USDA to establish a volutnary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into volutnary environmental credit markets for farmers S.1337 -AgricultureResilienceActof 2021; to promote emissions reductions in agriculture, improve soil health, enhance resilience, and create new market opportunities S.1371 -AmericaGrowsActof 2021; to increase funding for agriculture research and economics S.2036 - A bill to amend the Packers and Stockyards Act, 1921, to establish the Office of the Special Investigator for Competition Matters, and for other purposes. S.2789 - Extending Government Funding and Delivering Emergency Assistance Act; support for funding farm programs, support for disaster assistance, and reauthorization of livestock mandatory reporting. S. Con. Res. 14 - A concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2022 and setting forth the appropriate budgetary levels for fiscal years 2023 through 2031; support for investments in agriculture conservation and climate-smart agriculture, clean energy, rural development, agriculture research, child nutrition, and debt relief. S.2716 - American Beef Labeling Act; support for mandatory country of origin labeling for beef. S.3229 - Cattle Price Discovery and Transparency Act of 2021; support for increasing price discovery in cattle markets. Issues other than legislation: Strengthening federal antitrust enforcement Strengthening protections for farmers and ranchers producing agricultural commodities under contract Issues pertaining to mandatory country of origin labeling Strengthening product of the United States labeling standards Issues pertaining to natural disaster assistance for farmers and ranchers Implementation of the 2018 Farm Bill Implementation and funding for agricultural conservation programs Funding for the Grazing Lands Conservation Initiative Issues pertaining to balancing supply and demand for the dairy industry Issues pertaining to renewable energy production Issues pertaining to agriculture workforce and immigration reform Issues pertaining to fair and predictable H-2A program wages Issues pertaining to health and safety of farm workers and rural communities Issues pertaining to the integrity of the National Organic Standards and the certified organic label Issues pertaining to finalizing the Origin of Livestock proposed rule Issues pertaining to finalizing the Organic Livestock and Poultry Practices (OLPP) final rule Issues pertaining to domestic nutrition assistance programs Issues pertaining to international food assistance programs Implementation of COVID-19 assistance for farmers, ranchers, and rural communities Issues pertaining to improvements to meat and poultry slaughter and processing facilities to increase processing capacity Issues pertaining to Livestock Mandatory Price Reporting reauthorization Issues pertaining to climate and its impact in the agriculture, food, and forestry sectors. Issues pertaining to crop insurance, including funding and prioritization Ensuring farmers, ranchers, and independent repair professionals have access to parts and service materials needed to repair farm equipment Issues pertaining to climate-based landowner or operator tax credits Issues pertaining to a USDA carbon bank Issues pertaining to funding for climate-smart agriculture Issues pertaining to funding for climate-smart agriculture

Client expense: $100,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Commerce, Dept of (DOC), Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Farm Credit Administration, Federal Communications Commission (FCC), Federal Motor Carrier Safety Administration, Federal Reserve System, Federal Trade Commission (FTC), Food & Drug Administration (FDA), Government Accountability Office (GAO), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Intl Trade Administration (ITA), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Management & Budget (OMB), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR)

H.R.2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; opposition to elimination of step-up in basis S.994 - A billtoamendtheInternalRevenueCodeof1986toreinstateestateand generation-skipping taxes, and for other purposes; opposition to changes to the estate tax Issues pertaining to federal estate tax exemptions and step-up in basis Issues pertaining to climate-based landowner or operator tax credits

Client expense: $100,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Commerce, Dept of (DOC), Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Farm Credit Administration, Federal Communications Commission (FCC), Federal Motor Carrier Safety Administration, Federal Reserve System, Federal Trade Commission (FTC), Food & Drug Administration (FDA), Government Accountability Office (GAO), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Intl Trade Administration (ITA), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Management & Budget (OMB), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR)

Extension and Expansion of Credits for Paid Sick and Family Leave and Employee Retention HR1319 - The American Rescue Plan Act of 2021 State and Local Tax Deduction HR202 - SALT Fairness Act HR613 - SALT Deductibility Act HR946 - SALT Act HR2439 - SALT Fairness for Working Families Act HR3925 - SHELTER Act HR5565 - Banana Stand Money Act S85 - SALT Deductibility Act S804 - SALT Deduction Fairness Act Communications with the House of Representatives re: the SALT cap. Section 199A Deduction HR1381 - Main Street Certainty Act S480 - Main Street Tax Certainty Act S2387, the Small Business Tax Fairness Act Communications with the House Ways & Means Committee and the Senate Finance Committee opposing the repeal of the Section 199A Qualified Business Interest Deduction Opportunity Zones HR970 - The Opportunity Zone Extension Act HR4177 - The Expanding Opportunity Zones Act Communications with the U.S. Senate in support of extending the Qualified Opportunity Zone program deadlines. Section 1031 Like-Kind Exchanges HR1742 - The Real Estate Exchange Fairness Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of retaining Section 1031 Like-Kind Exchanges. Neighborhood Homes Investment Act S98 - The Neighborhood Homes Investment Act HR2143 - The Neighborhood Homes Investment Act Conversations with the U.S. House of Representatives and the U.S. Senate supporting bolstering the NHIA. First time homebuyer tax credits HR2863 - First-Time Homebuyer Act of 2021 Conversations with the U.S. House of Representatives and the U.S. Senate in support of a first-time homebuyer tax credit. Low Income Housing Tax Credit HR4204, the Affordable House Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of bolstering the Low Income Housing Tax Credit. Increasing Housing Supply Conversations with the U.S. House of Representatives and the U.S. Senate in support of tax incentives to create more housing supply and more housing options for first-time homebuyers. Communications with the House and Senate regarding legislative proposals to convert underused/abandoned commercial properties into residential real estate Estate Tax Reform HR1712 - Death Tax Repeal Act S617 - Death Tax Repeal Act Affordable Housing HR2573 - Affordable Housing Credit Improvement Act of 2021 HR2768 - American Housing and Economic Mobility Act S1136 - Affordable Housing Credit Improvement Act of 2021 S1368 - American Housing and Economic Mobility Act Commercial Real Estate Conversion Tax Credits HR4759 - The Revitalizing Downtowns Act S2511 - The Revitalizing Downtowns Act Carried Interest HR1068 - The Carried Interest Fairness Act S1598 - Carried Interest Fairness Act of 2021 Capital Gains Discussions regarding proposed legislation, the Sensible Taxation and Equity Promotion (STEP) Act. Communications with the House and Senate opposing increases to the capital gains tax rate and taxing of unrealized capital gains Energy Efficiency Tax Incentives HR2346 - E-QUIP Act Tax Credit for Disaster Mitigation/Expenses S1805 - Shelter Act REITs HR3123 - Parity for Non-Traded REITs Act Partnership Tax Rules Communications with the Senate Finance Committee about proposed legislation to change the partnership tax rules Tax Reform HR2275 - The Mortgage Debt Tax Forgiveness Act HR2276 - the Mortgage Insurance Tax Deduction Act HR2286 - A bill to treat property transferred by gift or at death as sold for fair market value S126 - A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other purposes. Communications with the House and Senate opposing changes to the "step-up in basis" provision Infrastructure Proposals HR5376 - Build Back Better Act Communications with the House and Senate regarding the pay-fors in the American Rescue Plan and the American Jobs Plan The Historic Tax Credit HR2266 - The Historic Tax Credit Growth and Opportunity Act HR2294 - The Historic Tax Credit Growth and Opportunity Act Discussions with the U.S. Treasury Department regarding tax policy, like-kind exchanges, capital gains, tax incentives for residential units, and the step-up in basis.

Client expense: $12,920,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Consumer Financial Protection Bureau (CFPB), Environmental Protection Agency (EPA), Federal Emergency Management Agency (FEMA), Federal Housing Finance Agency (FHFA), Financial Crimes Enforcement Network (FinCEN), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Housing & Urban Development, Dept of (HUD), Labor, Dept of (DOL), Office of Management & Budget (OMB), SENATE, Small Business Administration (SBA), Treasury, Dept of, Veterans Affairs, Dept of (VA), White House Office

H.R. 1068 -Carried Interest Fairness Act of 2021 H.R. 1321 -NMTC Extension Act of 2021 H.R. 1381 -Mainstreet Tax Certainty Act H.R. 1483 -REHAB Act of 2021 H.R. 1977 -Enhancing Credit Opportunities in Rural America Act H.R. 2143 -Neighborhood Homes Investment Act H.R. 2188 -Reopening America by Supporting Workers and Businesses Act H.R. 2189 -State Tax Freedom Act H.R. 2286 -taxes property transferred by gift or death as sold at market value H.R. 2288 -Investing in Our Communities Act H.R. 2294 -Historic Tax Credit Growth and Opportunity Act H.R. 2439 -SALT Fairness for Working Families Act H.R. 2558 -ALIGN Act H.R. 2573 -Affordable Housing Credit Improvement Act H.R. 2768 -American Housing and Economic Mobility Act of 2021 H.R. 2863 -First Time Homebuyer Act H.R. 3123 -Parity for Non-Traded REITS Act H.R. 3178 -Estate Tax Rate Reduction Act H.R. 3265 -Middle Class Savings Act H.R. 3324 -Incentivize Residential Energy Efficiency Act H.R. 3357 -Rural Jobs Act H.R. 3725 -Relief and Equity Through Small Business Tax Act H.R. 3805 -Millionaires Surtax Act H.R. 3903 -Tax Fairness Act H.R. 4165 -Uplifting First-Time Homebuyers Act of 2021 H.R. 4177 -Expanding Opportunity Zones Act H.R. 4940 -Real Corporate Profits Tax Act of 2021 H.R. 5376 -Build Back Better Act S. 98 -Neighborhood Homes Investment Act S. 456 -New Markets Tax Credit Extension Act of 2021 S. 480-Mainstreet Tax Certainty Act S. 1027-Tax Assistance for Crumbling Foundations Act S. 1136-Affordable Housing Credit Improvement Act S. 1166-Align Act S. 1368-American Housing and Economic Mobility Act S. 1403-Move America Act S. 1479-Home Lead Safety Credit Improvement Act S. 1499-REPAIR Act S. 1519-Save Hotel Jobs Act S. 1598-Carried Interest Fairness Act of 2021 S. 1627-Estate Tax Reduction Act S. 1652-Paying Fair Share Act S. 1653-SMART Act S. 1671-Rural Jobs Act S. 1753-Home Energy Savings Act S. 1768-Hope for HOMES Act S. 1805-SHELTER Act S. 2028-Millionaires Surtax Act S. 2234-Affordable Homes Act S. 2266-Historic Tax Credit Growth and Opportunity Act S. 2680-Real Corporate Profits Tax Act of 2021 S. 2820-DASH Act

Client expense: $570,000 · Firm income: Not reported

Government targets: Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), SENATE, Treasury, Dept of, White House Office

Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. The proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen. The introduced House bill is H.R. 2286, sponsored by Rep. Bill Pascrell (D-N.J.) Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. By using Section 1031, farmers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers might have to incur debt to continue their businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm. Farm Bureau supports H.R. 1712, Death Tax Repeal Act, introduced by Reps. Jason Smith (R-Mo.) and Sanford Bishop (D-Ga.). and S. 617, Death Tax Repeal Act of 2021- introduced by Sen. John Thune (R-S.D.). Farm Bureau policy supports a permanent repeal of the federal estate tax. Farm Bureau supports H.R. 1381, Main Street Tax Certainty Act, introduced by Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas) and S. 480. Main Street Tax Certainty Act, introduced by Sen. Steve Daines (R-Mont.) The Section 199A business income deduction allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Farm Bureau supports H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act) which would make full and immediate expensing provisions permanent. Because farming requires large investments in machinery and equipment, farmers and ranchers place great value on tax code provisions that allow them to write off expenditures in the year that purchases are made. Immediate deductibility permits them to better manage cash flow, minimize tax liabilities and reduce borrowing. Immediate expensing also offers the benefit of reducing the record keeping burden associated with having to depreciate equipment. Curtailing valuation discounting, an estate planning practice helpful to farmers and ranchers as they transfer their agricultural operations from one generation to another, has surfaced as one of the potential revenue raisers that could be used to pay for spending legislation. Michigan Farm Bureau opposes these efforts. Michigan Farm Bureau has weighed in with Members of Congress about the above mentioned tax provisions as part of the broader conversation around Build Back Better/Budget Reconciliation and Infrastructure as well. Farm Bureau opposed Build Back Better, H.R. 5376, as passed in the House on November 19.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), SENATE, State, Dept of (DOS)

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: Not reported · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), SENATE, State, Dept of (DOS), White House Office

Biden Made in America Tax Plan Paid Family Medical Leave Act HR 5376, HR 1785, HR 1459- Ultra-Millionaire Tax Act of 2021 HR 3805, S 2028 Millionaires Surtax Act HR 5376, S 2617, HR 1068, S 1598- Carried interest tax loophole HR 5376, discussion draft- Income tax on extremely high incomes, Billionaires Income tax Deemed realization (one-time) at death or transfer for large assets (e.g. >$1,000,000,000) Babies Over Billionaires Act (Deemed Realization on individuals with large unrealized capital gains during COVID timeframe) HR 5376, HR 1116, HR 1200, S 1857, S 1788- Increasing funding for IRS to strengthen tax enforcement 28% cap on value of individual itemized deductions 20% deduction for business owners' pass thru income to individual taxes HR 2286- Deemed Realization of capital gains S 1652- Paying a Fair Share Act Individual taxes: Surtax, higher rates on high income, close loopholes, Mark to Market Individual tax rate: raise top rate for 39.6% or higher Close NIIT and SECA tax loopholes and dedicate revenue to fund Medicare Corporate tax (e.g. higher rates, close loopholes, raise revenue) Generally, HR 5376, S 2680, HR 4940- Corporate tax- Minimum rate (e.g. 15%) Generally, SFC discussion draft, HR 5376- Corporate minimum tax: eligible income, pension plan income and appreciation Generally, HR 5376- Individual tax itemized deduction for state and local taxes (i.e. SALT) Generally, HR 5376- Earned income tax credits, child tax credits HR 2549, S 1157- Individual tax deduction for union dues General Business Tax Credits refundability Refundable NOL Carryover, Credit for R & D COVID-19 expenditures

Client expense: $600,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE, Treasury, Dept of, White House Office

S. 994, H.R. 2576 - For the 99.9 Percent Act S. 547, H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021 H.R.822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021 S.617 - 117th Congress Death Tax Repeal Act of 2021 Public Law 117-2 H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. S. 1770 - Retirement Security and Savings Act of 2021 H.R. 2954 - Securing a Strong Retirement Act of 2021 Issues related to retirement S Con Res 14

Client expense: $440,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

S. 994/H.R. 2576 - For the 99.9 Percent Act; S. 547/H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021; H.R. 822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021; S. 617 - 117th Congress Death Tax Repeal Act of 2021; American Rescue Plan Act of 2021 (PL 117-2); H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. 1770 - Retirement Security and Savings Act of 2021; H.R. 2954 - Securing a Strong Retirement Act of 2021; Issues related to retirement; S. Con. Res. 14.

Client expense: Not reported · Firm income: $60,000

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $25,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

Tax Reform and Tax and Budget Policy Tax Cuts and Jobs Act (TCJA): Continue to express support for the permanency of various provisions of the TCJA including Section 199A, lower personal tax rates, expensing provisions and estate tax changes. Main Street Certainty Act, H.R. 1381/S. 480: Support passage to make permanent the 20% small business deduction in the Tax Cuts and Jobs Act. Stepped-up Basis: Opposed efforts to eliminate stepped-up basis, as included within the Sensible Taxation and Equity Promotion (STEP) Act in the Senate and House, H.R. 2286. Supported S. Amdt #3106 to S.Con Res. 14, the Fiscal Year 2022 Budget Resolution, introduced by Senator John Thune (R-S.D.) Expressed continued support for stepped-up basis. S. Con. Res. 14 - FY22 Budget Resolution: Opposed the legislation. Proposed Tax Increases Considered by House Ways and Means as Part of $3.5 Trillion Reconciliation Package: Opposed the proposals to raise rates on pass-throughs and C corporations, capping the Section 199A deduction, increases to the capital gains tax, imposition of capital gains at death, changes to TCJA death tax provisions, and corporate tax rates. Comprehensive Account Reporting of Financial and Bank Account Information to the IRS: Oppose Biden/U.S. Treasury reporting scheme, and efforts in the Congress to utilize such to pay for the $3.5 trillion spending package. PRO Act Tax Increase: Oppose efforts to include the PRO Act within an unemployment insurance reform measure in the $3.5 trillion package as a pay-for, which would mean higher taxes and costs for millions of small businesses. (The Wyden-Bennet proposal.) Affordable and Competitive Health Coverage Affordability/More Choices: Continue to urge members of Congress and the Administration to advance market-oriented reforms that will lower health coverage costs for small businesses and increase more flexible choices in the marketplace. Oppose efforts, generally, to impose new mandates and taxes that will add to small business costs and reduce access to health care. Price Controls on Drugs: Expressed opposition to efforts that place price controls on drugs either through Medicare negotiation, an international pricing mechanism, or drug importation. H.R. 3, the Lower Drug Costs Now Act of 2019: Oppose. Federal Government Procurement Escobar Amendment (#499) to the Rules Committee: Opposed the amendment. Regulation Expressed general concern to Congress and the Biden Administration about imposing new regulatory burdens on small businesses, and the impact during the fragile recovery period. Biden Executive Order on Competition: Expressed concern about the Promoting Competition in the American Economy Executive Order, as it is more about massive regulation than competition policy. COVID-19 Vaccine Mandate: Oppose efforts by the Administration and OSHA to oppose this mandate given the success of businesses working through this issue without government interference or a one-size-fits-all and punitive approach. PRO Act, H.R. 842/S.420: Oppose the Protecting the Right to Organize Act Consumer Financial Protection Commission Act, H.R. 4773: Support the legislation. Modern Worker Empowerment Act, H.R. 4069/S. 2973: Support the legislation. Fair and Open Competition Act, H.R. 1284/S. 403: Support the legislation. Privacy Legislation: Support a national framework for privacy that is inclusive and equitable to all industries. Comments to DOL to establish negotiated rulemaking committees to prepare proposed regulations for programs authorized under title IV of the Higher Education Act of 1965, as amended (HEA): Filed comments supporting an inclusive approach to all educational providers including online courses and models of learning. American Choice and Online Innovation Act, H.R. 3816: Opposed the legislation. Ending Platforms Monopolies Act, H.R. 3825: Opposed the legislation. Platform Competition and Opportunity Act, H.R. 3826: Opposed the legislation. Nomination and Appointments DOL Wage and Hour Nominee: Expressed opposition to the candidacy of David Weil as DOL Wage and Hour Administrator, and his Senate confirmation. SBA Deputy Administration: Expressed support to the U.S. Senate for the nomination of Dilawar Syed to the post of Deputy Administrator of the Small Business Administration (SBA).

Client expense: $30,000 · Firm income: Not reported

Government targets: Education, Dept of, HOUSE OF REPRESENTATIVES, SENATE, White House Office

H.R.133 - Consolidated Appropriations Act, 2021; support for agriculture and rural communities H.R.1393 - Justice for Black Farmers Act of 2021; support for civil rights reforms at the U.S. Department of Agriculture, land grants for black farmers, strengthening of local and regional food systems, and reform to the Packers and Stockyards Act H.R.1603 - Farm Workforce Modernization Act of 2021; Support for agriculture workforce and immigration reform H.R.2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; opposition to elimination of step-up in basis H.R.1319 - American Rescue Plan Act of 2021; issues pertaining to commodity procurement, grants and loans to processing facilities, overtime fee relief for meatpacking facilities, assistance for socially-disadvantaged farmers and ranchers, rural health care, vaccine distribution, nutrition assistance, and Small Business Administration pandemic relief programs. H.R.2820 - Growing Climate Solutions Act; to authorize USDA to establish a volutnary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into volutnary environmental credit markets for farmers H.R.2803 -AgricultureResilienceAct; to promote emissions reductions in agriculture, improve soil health, enhance resilience, and create new market opportunities H.R.2866 - America Grows Act of 2021; to increase funding for public agriculture research and economics H.R.5305 - Making continuing appropriations for the fiscal year ending September 30, 2022, and for providing emergency assistance, and for other purposes; support for funding farm programs, support for disaster assistance, and reauthorization of livestock mandatory reporting. H.R.3684 - Infrastructure Investment and Jobs Act; support for infrastructure investments in rural areas including for broadband and high-speed internet, transportation, western water infrastructure, and for watershed resilience. H.R.267 - 2020 WHIP+ Reauthorization Act; support for the Wildfire and Hurricane Indemnity Program Plus to help producers whose crops were damaged by disasters H.R.5376 - To provide for reconciliation pursuant to title II of S. Con. Res. 14; support for investments in agriculture conservation and climate-smart agriculture, clean energy, rural development, agriculture research, child nutrition, and debt relief. S.278 Emergency Relief for Farmers of Color Act of 2021, to require the Secretary of Agriculture to provide assistance for socially disadvantaged farmers and ranchers; debt forgiveness on Farm Service Agency loans S.300 - Justice for Black Farmers Act of 2021; support for civil rights reforms at the U.S. Department of Agriculture, land grants for black farmers, strengthening of local and regional food systems, and reform to the Packers and Stockyards Act S.949 - A bill to amend the AgriculturalMarketing Act of 1946 to foster efficientmarkets and increase competition and transparency among packers that purchase livestock from producers; support for strengthening cattle cash markets S.994 - A billtoamendtheInternalRevenueCodeof1986toreinstateestateand generation-skipping taxes, and for other purposes; opposition to changes to the estate tax S.543 - Cattle Market Transparency Act of 2021; support for increasing transparency in cattle markets S.1251 - Growing Climate Solutions Act; to authorize USDA to establish a volutnary Greenhouse Gas Technical Assistance Provider and Third-Party Verifier Certification Program to help reduce entry barriers into volutnary environmental credit markets for farmers S.1337 -AgricultureResilienceActof 2021; to promote emissions reductions in agriculture, improve soil health, enhance resilience, and create new market opportunities S.1371 -AmericaGrowsActof 2021; to increase funding for agriculture research and economics S.2036 - A bill to amend the Packers and Stockyards Act, 1921, to establish the Office of the Special Investigator for Competition Matters, and for other purposes. S.2789 - Extending Government Funding and Delivering Emergency Assistance Act; support for funding farm programs, support for disaster assistance, and reauthorization of livestock mandatory reporting. S. Con. Res. 14 - A concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2022 and setting forth the appropriate budgetary levels for fiscal years 2023 through 2031; support for investments in agriculture conservation and climate-smart agriculture, clean energy, rural development, agriculture research, child nutrition, and debt relief. S.2716 - American Beef Labeling Act; support for mandatory country of origin labeling for beef. Issues other than legislation: Strengthening federal antitrust enforcement Strengthening protections for farmers and ranchers producing agricultural commodities under contract Issues pertaining to mandatory country of origin labeling Strengthening product of the United States labeling standards Issues pertaining to natural disaster assistance for farmers and ranchers Implementation of the 2018 Farm Bill Implementation and funding for agricultural conservation programs Funding for the Grazing Lands Conservation Initiative Issues pertaining to balancing supply and demand for the dairy industry Issues pertaining to renewable energy production Issues pertaining to agriculture workforce and immigration reform Issues pertaining to fair and predictable H-2A program wages Issues pertaining to health and safety of farm workers and rural communities Issues pertaining to the integrity of the National Organic Standards and the certified organic label Issues pertaining to finalizing the Origin of Livestock proposed rule Issues pertaining to finalizing the Organic Livestock and Poultry Practices (OLPP) final rule Issues pertaining to domestic nutrition assistance programs Issues pertaining to international food assistance programs Implementation of COVID-19 assistance for farmers, ranchers, and rural communities Issues pertaining to improvements to meat and poultry slaughter and processing facilities to increase processing capacity Issues pertaining to Livestock Mandatory Price Reporting reauthorization Issues pertaining to climate and its impact in the agriculture, food, and forestry sectors. Issues pertaining to crop insurance, including funding and prioritization Ensuring farmers, ranchers, and independent repair professionals have access to parts and service materials needed to repair farm equipment Issues pertaining to climate-based landowner or operator tax credits Issues pertaining to a USDA carbon bank Issues pertaining to funding for climate-smart agriculture

Client expense: $40,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Commerce, Dept of (DOC), Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Farm Credit Administration, Federal Communications Commission (FCC), Federal Motor Carrier Safety Administration, Federal Reserve System, Federal Trade Commission (FTC), Food & Drug Administration (FDA), Government Accountability Office (GAO), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Intl Trade Administration (ITA), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Management & Budget (OMB), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR)

H.R.2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; opposition to elimination of step-up in basis S.994 - A billtoamendtheInternalRevenueCodeof1986toreinstateestateand generation-skipping taxes, and for other purposes; opposition to changes to the estate tax Issues pertaining to federal estate tax exemptions and step-up in basis Issues pertaining to climate-based landowner or operator tax credits

Client expense: $40,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Commerce, Dept of (DOC), Commodity Futures Trading Commission (CFTC), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Farm Credit Administration, Federal Communications Commission (FCC), Federal Motor Carrier Safety Administration, Federal Reserve System, Federal Trade Commission (FTC), Food & Drug Administration (FDA), Government Accountability Office (GAO), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Homeland Security, Dept of (DHS), Internal Revenue Service (IRS), Intl Trade Administration (ITA), Justice, Dept of (DOJ), Labor, Dept of (DOL), Office of Management & Budget (OMB), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), U.S. International Trade Commission (ITC), U.S. Trade Representative (USTR)

Extension and Expansion of Credits for Paid Sick and Family Leave and Employee Retention HR1319 - The American Rescue Plan Act of 2021 State and Local Tax Deduction HR202 - SALT Fairness Act HR613 - SALT Deductibility Act HR946 - SALT Act HR2439 - SALT Fairness for Working Families Act HR3925 - SHELTER Act HR5565 - Banana Stand Money Act S85 - SALT Deductibility Act S804 - SALT Deduction Fairness Act Communications with the House of Representatives re: the SALT cap. Section 199A Deduction HR1381 - Main Street Certainty Act S480 - Main Street Tax Certainty Act S2387, the Small Business Tax Fairness Act Communications with the House Ways & Means Committee and the Senate Finance Committee opposing the repeal of the Section 199A Qualified Business Interest Deduction Opportunity Zones HR970 - The Opportunity Zone Extension Act HR4177, the Expanding Opportunity Zones Act Section 1031 Like-Kind Exchanges HR1742 - The Real Estate Exchange Fairness Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of retaining Section 1031 Like-Kind Exchanges. Neighborhood Homes Investment Act S98 - The Neighborhood Homes Investment Act HR2143 - The Neighborhood Homes Investment Act Conversations with the U.S. House of Representatives and the U.S. Senate supporting bolstering the NHIA. First time homebuyer tax credits HR2863 - First-Time Homebuyer Act of 2021 Conversations with the U.S. House of Representatives and the U.S. Senate in support of a first-time homebuyer tax credit. Low Income Housing Tax Credit HR4204, the Affordable House Act Conversations with the U.S. House of Representatives and the U.S. Senate in support of bolstering the Low Income Housing Tax Credit. Increasing Housing Supply Conversations with the U.S. House of Representatives and the U.S. Senate in support of tax incentives to create more housing supply and more housing options for first-time homebuyers. Communications with the House and Senate regarding legislative proposals to convert underused/abandoned commercial properties into residential real estate Estate Tax Reform HR1712 - Death Tax Repeal Act S617 - Death Tax Repeal Act Affordable Housing HR2573 - Affordable Housing Credit Improvement Act of 2021 HR2768 - American Housing and Economic Mobility Act S1136 - Affordable Housing Credit Improvement Act of 2021 S1368 - American Housing and Economic Mobility Act Commercial Real Estate Conversion Tax Credits HR4759 - The Revitalizing Downtowns Act S2511 - The Revitalizing Downtowns Act Carried Interest HR1068 - The Carried Interest Fairness Act S1598 - Carried Interest Fairness Act of 2021 Capital Gains Discussions regarding proposed legislation, the Sensible Taxation and Equity Promotion (STEP) Act. Communications with the House and Senate opposing increases to the capital gains tax rate and taxing of unrealized capital gains Energy Efficiency Tax Incentives HR2346 - E-QUIP Act Tax Credit for Disaster Mitigation/Expenses S1805 - Shelter Act REITs HR3123 - Parity for Non-Traded REITs Act Partnership Tax Rules Communications with the Senate Finance Committee about proposed legislation to change the partnership tax rules Tax Reform HR2275 - The Mortgage Debt Tax Forgiveness Act HR2276 - the Mortgage Insurance Tax Deduction Act HR2286 - A bill to treat property transferred by gift or at death as sold for fair market value S126 - A bill to amend the Internal Revenue Code of 1986 to make permanent the individual tax provisions of the tax reform law, and for other purposes. Communications with the House and Senate opposing changes to the "step-up in basis" provision Communications with the House Ways and Means Committee and Senate Finance Committee regarding proposed limitations on real estate investment Infrastructure Proposals HR5376 - Build Back Better Act Communications with the House and Senate regarding the pay-fors in the American Rescue Plan and the American Jobs Plan The Historic Tax Credit HR2266 - The Historic Tax Credit Growth and Opportunity Act HR2294 - The Historic Tax Credit Growth and Opportunity Act Discussions with the U.S. Treasury Department regarding tax policy, like-kind exchanges, capital gains, tax incentives for residential units, and the step-up in basis.

Client expense: $12,820,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Consumer Financial Protection Bureau (CFPB), Environmental Protection Agency (EPA), Federal Emergency Management Agency (FEMA), Federal Housing Finance Agency (FHFA), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Housing & Urban Development, Dept of (HUD), Labor, Dept of (DOL), SENATE, Small Business Administration (SBA), Treasury, Dept of, Veterans Affairs, Dept of (VA), White House Office

Biden Made in America Tax Plan HR 564- Paid Family Medical Leave HR 1785, S 714- No Tax Breaks for Outsourcing Act HR 2576, S 994- For the 99.5% Act S 510, HR 1459- Ultra-Millionaire Tax Act of 2021 HR 3805, S 2028- Millionaires Surtax Act Sensible Taxation and Equity Promotion (STEP) Act, discussion draft HR 1068- Carried Interest Fairness Act HR 1116- IRS Enhancement and Tax Gap Reduction Act HR 1200, S 1857- Stop CHEATERS Act (Stop Corporations and High Earners from Avoiding Taxes and Enforce Rules Strictly) S 1788- Restoring the IRS Act of 2021 HR 328, S 817- Wall Street Tax Act HR 2735, S 1283- Tax on Wall Street Speculation Act 28% cap on value of individual itemized deductions 20% deduction for business owners' pass thru income to individual taxes HR 2286- Deemed Realization of capital gains at death or bequest Deemed Realization (one-time) at death or transfer for significant assets (e.g. >$1,000,000,000) Babies Over Billionaires Act (Deemed Realization on individuals with large unrealized capital gains during COVID timeframe) S 1652- Paying a Fair Share Act S 2680, HR 4940- Real Corporate Profits Tax S 794- Tax Excessive CEO Pay Act Individual taxes: Surtax, higher rates on high incomes, close loopholes, Mark to Market Individual tax rate: raise top rate to 39.6% or higher Close NIIT and SECA tax loopholes and dedicate revenue to fund Medicare Corporate taxes (e.g. higher rates, close loopholes, raise revenue) Corporate taxes: minimum 15% Individual tax itemized deduction for state and local taxes (i.e. SALT) Earned income tax credit and child tax credits HR 2549, S 1157- Tax Fairness for Workers Act HR 696, S 147- CARES Windfall for the Wealthiest Repeal Act General Business Tax Credits refundability Refundable NOL Carryover, Credit for R & D COVID-19 expenditures COVID Relief Package, Millionaires Giveaway Net Operating Loss tax break Ways and Means Draft, The Building an Economy for Families Act Payroll tax credit for child care providers (employer side refundable credit) HR 3007, S 1545- Disclosure of Tax Havens and Offshoring Act

Client expense: $570,000 · Firm income: Not reported

Government targets: Centers For Medicare and Medicaid Services (CMS), Commerce, Dept of (DOC), HOUSE OF REPRESENTATIVES, Health & Human Services, Dept of (HHS), Labor, Dept of (DOL), SENATE, Transportation, Dept of (DOT), Treasury, Dept of, White House Office

Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. The proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen. The introduced House bill is H.R. 2286, sponsored by Rep. Bill Pascrell (D-N.J.) Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. By using Section 1031, farmers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers might have to incur debt to continue their businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm. Farm Bureau supports H.R. 1712, Death Tax Repeal Act, introduced by Reps. Jason Smith (R-Mo.) and Sanford Bishop (D-Ga.). and S. 617, Death Tax Repeal Act of 2021- introduced by Sen. John Thune (R-S.D.). Farm Bureau policy supports a permanent repeal of the federal estate tax. Farm Bureau supports H.R. 1381, Main Street Tax Certainty Act, introduced by Reps. Jason Smith (R-Mo.) and Henry Cuellar (D-Texas) and S. 480. Main Street Tax Certainty Act, introduced by Sen. Steve Daines (R-Mont.) The Section 199A business income deduction allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Farm Bureau supports H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act) which would make full and immediate expensing provisions permanent. Because farming requires large investments in machinery and equipment, farmers and ranchers place great value on tax code provisions that allow them to write off expenditures in the year that purchases are made. Immediate deductibility permits them to better manage cash flow, minimize tax liabilities and reduce borrowing. Immediate expensing also offers the benefit of reducing the record keeping burden associated with having to depreciate equipment. Curtailing valuation discounting, an estate planning practice helpful to farmers and ranchers as they transfer their agricultural operations from one generation to another, has surfaced as one of the potential revenue raisers that could be used to pay for spending legislation. Michigan Farm Bureau opposes these efforts. Michigan Farm Bureau has weighed in with Members of Congress about the above mentioned tax provisions as part of the broader conversation around Budget Reconciliation and Infrastructure as well.

Client expense: $50,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE

H.R. 1068 -Carried Interest Fairness Act of 2021 H.R. 1321 -NMTC Extension Act of 2021 H.R. 1381 -Mainstreet Tax Certainty Act H.R. 1483 -REHAB Act of 2021 H.R. 1977 -Enhancing Credit Opportunities in Rural America Act H.R. 2143 -Neighborhood Homes Investment Act H.R. 2188 -Reopening America by Supporting Workers and Businesses Act H.R. 2189 -State Tax Freedom Act H.R. 2286 -taxes property transferred by gift or death as sold at market value H.R. 2288 -Investing in Our Communities Act H.R. 2294 -Historic Tax Credit Growth and Opportunity Act H.R. 2439 -SALT Fairness for Working Families Act H.R. 2558 -ALIGN Act H.R. 2573 -Affordable Housing Credit Improvement Act H.R. 2768 -American Housing and Economic Mobility Act of 2021 H.R. 2863 -First Time Homebuyer Act H.R. 3123 -Parity for Non-Traded REITS Act H.R. 3178 -Estate Tax Rate Reduction Act H.R. 3265 -Middle Class Savings Act H.R. 3324 -Incentivize Residential Energy Efficiency Act H.R. 3357 -Rural Jobs Act H.R. 3725 -Relief and Equity Through Small Business Tax Act H.R. 3805 -Millionaires Surtax Act H.R. 3903 -Tax Fairness Act H.R. 4165 -Uplifting First-Time Homebuyers Act of 2021 H.R. 4177 -Expanding Opportunity Zones Act H.R. 4940 -Real Corporate Profits Tax Act of 2021 H.R. 5376 -Build Back Better Act S. 98 -Neighborhood Homes Investment Act S. 456 -New Markets Tax Credit Extension Act of 2021 S. 480-Mainstreet Tax Certainty Act S. 1027-Tax Assistance for Crumbling Foundations Act S. 1136-Affordable Housing Credit Improvement Act S. 1166-Align Act S. 1368-American Housing and Economic Mobility Act S. 1403-Move America Act S. 1479-Home Lead Safety Credit Improvement Act S. 1499-REPAIR Act S. 1519-Save Hotel Jobs Act S. 1598-Carried Interest Fairness Act of 2021 S. 1627-Estate Tax Reduction Act S. 1652-Paying Fair Share Act S. 1653-SMART Act S. 1671-Rural Jobs Act S. 1753-Home Energy Savings Act S. 1768-Hope for HOMES Act S. 1805-SHELTER Act S. 2028-Millionaires Surtax Act S. 2234-Affordable Homes Act S. 2266-Historic Tax Credit Growth and Opportunity Act S. 2680-Real Corporate Profits Tax Act of 2021 S. 2820-DASH Act

Client expense: $650,000 · Firm income: Not reported

Government targets: Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), HOUSE OF REPRESENTATIVES, Housing & Urban Development, Dept of (HUD), SENATE, Transportation, Dept of (DOT), Treasury, Dept of, White House Office

S. 994/H.R. 2576 - For the 99.9 Percent Act; S. 547/H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021; H.R. 822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021; S. 617 - 117th Congress Death Tax Repeal Act of 2021; American Rescue Plan Act of 2021 (PL 117-2); H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes; S. 1770 - Retirement Security and Savings Act of 2021; H.R. 2954 - Securing a Strong Retirement Act of 2021; Issues related to retirement; S. Con. Res. 14.

Client expense: Not reported · Firm income: $60,000

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

Reconciliation Legislation H.R. 5376, to provide for reconciliation pursuant to title II of S. Con. Res. 14, Title XIII -- Committee on Ways and Means, Subtitle F -- Infrastructure Financing and Community Development, Part 3 -- Rehabilitation Tax Credit, Section 135301: Determination of Credit Percentage, Section 135302: Increase in the Rehabilitation Credit for Certain Small Projects, Section 135303: Modification of Definition of Substantially Rehabilitated, and Section 135304: Elimination of Rehabilitation Credit Basis Adjustment; Part 5 -- Housing, Subpart A -- Low-Income Housing Tax Credit, Section 135501: Increase in State Allocations, Section 135502: Tax-Exempt Bond Financing Requirement, Section 135503: Buildings Designated to Serve Extremely Low-Income Households, Section 135504: Inclusion of Rural Areas as Difficult Development Areas, and Section 135507: Increase in Credit for Bond-Financed Projects Designated by Housing Credit Agency; Subtitle G -- Green Energy, Part 3 -- Green Energy and Efficiency Incentives for Individuals, Section 136303: Energy Efficient Commercial Buildings Deduction and Section 136304: Extension, Increase, and Modifications of New Energy Efficient Home Credit. Subtitle I -- Responsibly Funding Our Priorities, Part 1 -- Corporate and International Tax Reforms, Subpart E -- Other Business Tax Provisions, Section 138149: Modification of Rules for Partnership Interests Held in Connection with the Performance of Services; Part 2: Tax Increases for High-Income Individuals, Section 138201: Increase in Top Marginal Individual Income Tax Rate, Section 138202: Increase in Capital Gains Rate for Certain High Income Individuals, Section 138203: Application of Net Investment Income Tax to Trade or Business Income of Certain High Income Individuals, Section 138204: Limitation on Deduction of Qualified Business Income for Certain High Income Individuals, Section 138205: Limitations on Excess Business Losses of Noncorporate Taxpayers, Section 138206: Surcharge on High Income Individuals, Estates, and Trusts, and Section 138207: Termination of Temporary Increase in Unified Credit; Part 3 -- Modifications of Rules Relating to Retirement Plans, Subpart B -- Other Provisions Relating to Individual Retirement Accounts, Section 138312: Prohibitions of IRA Investments Conditioned on Account Holder Status House Committee on Ways and Means, Amendment in the Nature of a Substitute to the Revenue Provisions of Subtitles F, G, H, I, and J of the Budget Reconciliation Legislative Recommendations Relating to Infrastructure Financing and Community Development, Green Energy, Social Safety Net, Responsibly Financing Our Priorities, and Prescription Drug Pricing: Subtitle F -- Infrastructure Financing and Community Development, Part 3 -- Rehabilitation Tax Credit, Section 135301: Determination of Credit Percentage, Section 135302: Increase in the Rehabilitation Credit for Certain Small Projects, Section 135303: Modification of Definition of Substantially Rehabilitated, and Section 135304: Elimination of Rehabilitation Credit Basis Adjustment; Part 5 -- Housing, Subpart A -- Low-Income Housing Tax Credit, Section 135501: Increase in State Allocations, Section 135502: Tax-Exempt Bond Financing Requirement, Section 135503: Buildings Designated to Serve Extremely Low-Income Households, Section 135504: Inclusion of Rural Areas as Difficult Development Areas, and Section 135507: Increase in Credit for Bond-Financed Projects Designated by Housing Credit Agency; Subtitle G -- Green Energy, Part 3 -- Green Energy and Efficiency Incentives for Individuals, Section 136303: Energy Efficient Commercial Buildings Deduction and Section 136304: Extension, Increase, and Modifications of New Energy Efficient Home Credit. Subtitle I -- Responsibly Funding Our Priorities, Part 1 -- Corporate and International Tax Reforms, Subpart E -- Other Business Tax Provisions, Section 138149: Modification of Rules for Partnership Interests Held in Connection with the Performance of Services; Part 2: Tax Increases for High-Income Individuals, Section 138201: Increase in Top Marginal Individual Income Tax Rate, Section 138202: Increase in Capital Gains Rate for Certain High Income Individuals, Section 138203: Application of Net Investment Income Tax to Trade or Business Income of Certain High Income Individuals, Section 138204: Limitation on Deduction of Qualified Business Income for Certain High Income Individuals, Section 138205: Limitations on Excess Business Losses of Noncorporate Taxpayers, Section 138206: Surcharge on High Income Individuals, Estates, and Trusts, and Section 138207: Termination of Temporary Increase in Unified Credit; Part 3 -- Modifications of Rules Relating to Retirement Plans, Subpart B -- Other Provisions Relating to Individual Retirement Accounts, Section 138312: Prohibitions of IRA Investments Conditioned on Account Holder Status Taxation of Pass-Through Entities Section 199A Qualified Business Income Tax Deduction: Oppose any reduction to or repeal of the 20-percent deduction for qualified business income under Section 199A, including phasing out the deduction above certain income thresholds. S. 2387, Small Business Tax Fairness Act, to amend the Internal Revenue Code of 1986 to improve the deduction for qualified business income, all provisions. Senator Wyden Pass-Through Reform Discussion Draft, all provisions. Low-Income Housing Tax Credit and Middle-Income Housing Tax Credit H.R. 2573, Affordable Housing Credit Improvement Act of 2021, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 1136, Affordable Housing Credit Improvement Act of 2021, to amend the Internal Revenue Code of 1986 to reform the low-income housing credit, and for other purposes, all provisions. S. 2820, Decent, Affordable, Safe Housing for All Act (DASH Act), to provide rental housing vouchers for the homeless, and for other purposes, Title I -- Housing Assistance, Subtitle A -- General Housing Assistance, Section 111: Rental Vouchers for the Homeless, portion of section pertaining to source of income rules; Title II -- Revenue Provisions: Sections 201-214 pertaining to the Low-Income Housing Tax Credit, Section 215 establishing a renter's tax credit, and Section 216 establishing a middle-income housing tax credit. S. 3365 (115th Congress), Middle-Income Housing Tax Credit Act of 2018, to amend the Internal Revenue Code of 1986 to provide a credit for middle-income housing, and for other purposes, all provisions. Analyzed legislative proposal to establish a 6 percent Low-Income Housing Tax Credit Rehabilitation Tax Credit H.R. 1483, Revitalizing Economies, Housing, and Businesses Act of 2021 or the REHAB Act of 2021, to amend the Internal Revenue Code of 1986 to modify the rehabilitation credit, all provisions. Energy Tax Incentives H.R. 848, Growing Renewable Energy and Efficiency Now Act of 2021 (GREEN Act of 2021), to amend the Internal Revenue Code of 1986 to provide incentives for renewable energy and energy efficiency, and for other purposes, Section 303: Energy Efficient Commercial Buildings Deduction and Section 304: Extension, Increase, and Modifications of New Energy Efficient Home Credit. S. 2118, Clean Energy for America Act, to amend the Internal Revenue Code of 1986 to provide tax incentives for increased investment in clean energy: Title III -- Incentives for Energy Efficiency, Section 301: Credit for new energy efficient residential buildings and Section 303: Enhancement of energy efficient commercial buildings deduction; and Title V -- Workforce Development Requirements, Section 501: Use of qualified apprentices. H.R. 5188 New Home Energy Efficient Act of 2021 Support long-term extension of New energy efficient home credit (IRC 45L). Support expansion of Energy efficient commercial buildings deduction (IRC 179D) to establish a sliding scale of energy improvements, which would help spur investment in energy efficient improvements in older buildings. Biden Tax Proposals Department of the Treasury, General Explanations of the Administration's Fiscal Year 2022 Revenue Proposals, American Families Plan: Increase the Top Marginal Income Tax Rate for High Earners, Reform the Taxation of Capital Income, Rationalize Net Investment Income and Self-Employment Contribution Act Taxes, Tax Carried (Profits) Interests as Ordinary Income, and Repeal Deferral of Gain from Like-Kind Exchanges. Like-kind exchanges: Support retaining current law. S. Amdt. 3753 (to establish a deficit-neutral reserve fund relating to maintaining the current law tax treatment of like kind exchanges) to S. Con Res. 14 (a concurrent resolution setting forth the congressional budget for the United States Government for fiscal year 2022 and setting forth the appropriate budgetary levels for fiscal years 2023 through 2031). Capital Gains - Oppose doubling the long-term capital gains tax rate. Carried interest: NMHC believes that carried interest should be treated as a long-term capital gain if the underlying asset is held for at least one year. H.R. 1068, Carried Interest Fairness Act of 2021, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities, all provisions. S. 1598, Carried Interest Fairness Act of 2021, to amend the Internal Revenue Code of 1986 to provide for the proper tax treatment of personal service income earned in pass-thru entities, all provisions. S. 2617, Ending the Carried Interest Loophole Act, to amend the Internal Revenue Code of 1986 to revise the treatment of partnership interests received in connection with the performance of services, and for other purposes, all provisions. Stepped-Up Basis at Death and Taxation of Unrealized Capital Gains at Death Support retaining current law providing for stepped-up basis at death and taxation of capital gains upon actual sale. H.R 2286, to amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes, all provisions. Foreign Investment in Real Property Tax Act (FIRPTA) H.R. 2210 (116th Congress), Invest in America Act, to amend the Internal Revenue Code of 1986 to repeal certain provisions applicable to foreign investment in United States real property, all provisions. H.R. 3123, Parity for Non-Traded REITs Act, to amend the Internal Revenue Code of 1986 to provide the same treatment to publicly offered, non-traded Real Estate Investment Trusts as is provided to exchange-traded Real Estate Investment Trusts under the Foreign Investment in Real Property Tax Act of 1980, all provisions.

Client expense: $1,340,000 · Firm income: Not reported

Government targets: Consumer Financial Protection Bureau (CFPB), Energy, Dept of, Environmental Protection Agency (EPA), Executive Office of the President (EOP), Federal Communications Commission (FCC), Federal Deposit Insurance Corporation (FDIC), Federal Emergency Management Agency (FEMA), Federal Housing Finance Agency (FHFA), Federal Reserve System, Government Accountability Office (GAO), HOUSE OF REPRESENTATIVES, Homeland Security, Dept of (DHS), Housing & Urban Development, Dept of (HUD), Justice, Dept of (DOJ), Office of the Comptroller of the Currency (OCC), SENATE, Small Business Administration (SBA), Transportation, Dept of (DOT), Treasury, Dept of, U.S. Postal Service (USPS)

Kansas Farm Bureau opposes various bills and proposals that eliminate step up basis. We oppose legislation that creates a capital gains tax due at date of death. Kansas Farm Bureau supports a full repeal of the estate tax (commonly referred to as the "death tax" in farming and ranching). Short of a full repeal, keeping the current estate tax at the $11 million indexed for inflation will be key as farming and ranching families make decisions to transition the farm to future generations. Farm Bureau supports legislation, H.R. 2370, to allow more farm and ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. Farm and ranch families who want to continue farming and ranching when a member of their family dies should be able to pay estate taxes on the value of their current business, not what their land would be worth if they sold out to a developer. Farm Bureau supports H.R.2370, the Preserving Family Farms Act of 2021, introduced by Rep. Jimmy Panetta (D-Calif.) and Jackie Walorski (R-Ind.). which would allow more farm or ranch land to be valued at its agricultural value rather than its inflated development value for estate tax purposes. This legislation updates IRS Code Section 2032A Special Use Valuation which allows farmers and ranchers to pay estate taxes on the value of farmland based on agricultural use, rather than its value if it sold for development. Under current law heirs can reduce the value of their property to reflect agricultural use by up to $1.19 million. H.R. 2370 would expand the amount of the reduction to $11.7 million thereby increasing the amount of agricultural land that can be protected by using special use valuation. In exchange for this alternative valuation, family members must continue the farming or ranch in business for 10 years or pay the complete tax amount. Farm Bureau is opposed to legislation that has been proposed in the House and Senate to end stepped-up basis and impose capital gains taxes at death. The bills treat property which is transferred by gift or at death as if were sold for its fair market value. This deemed sale causes a recognition of gain, the amount that the asset increased in value while owned by the decedent, that is subject to capital gains taxes. The legislation contains an exclusion for up to $1 million dollars of gain. This new capital gains tax at death would be applied on top of existing estate taxes - so that both the new capital gains tax and existing estate taxes would be collected when a farm or ranch owned dies. We oppose the proposed Senate bill is called the Sensible Taxation and Equity Promotion (STEP) Act, introduced by Sens. Chris Van Hollen (D-Md.), Cory Booker (D-N.J.), Bernie Sanders (I-Vt.), Sheldon Whitehouse (D-R.I.) and Elizabeth Warren (D-Mass.). The introduced House bill is H.R. 2286. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed. Farm Bureau supports the continuation of Sec. 1031 Like Kind Exchanges. The rollback or elimination of this provision, which is popular with farmers and ranchers, is frequently mentioned as a possible pay-for for spending legislation. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development.

Client expense: $70,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Army, Dept of (Corps of Engineers), Environmental Protection Agency (EPA), HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT), U.S. Trade Representative (USTR)

S. 994, H.R. 2576 - For the 99.9 Percent Act S. 547, H.R. 409 - Butch Lewis Emergency Pension Plan Relief Act of 2021 H.R.822 - 117th Congress Permanently Repeal the Estate Tax Act of 2021 S.617 - 117th Congress Death Tax Repeal Act of 2021 Public Law 117-2 H.R. 2286 - To amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. S. 1770 - Retirement Security and Savings Act of 2021 H.R. 2954 - Securing a Strong Retirement Act of 2021 Issues related to retirement S Con Res 14

Client expense: $340,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, Labor, Dept of (DOL), SENATE, Treasury, Dept of

Support for S. 617 and H.R. 1712, the Death Tax Repeal Act, which would permanently repeal the Federal Estate Tax; H.R. 1381 and S. 480, the Main Street Tax Certainty Act, which would make the 199A business tax deduction permanent; H.R. 2370, the Preserving Family Farms Act of 2021, which would update IRS Code Section 2032A Special Use Valuation to allow more farmland to be valued at its agricultural value rather than its inflated development value for estate tax purposes; H.R. 2558 and S. 1166, the Accelerate Long-term Investment Growth Now Act (ALIGN Act), which would make full and immediate expensing provisions permanent; H.R. 2447, the Veterinary Medicine Loan Repayment Program Enhancement Act, which would reduce taxes for veterinary students who agree to serve in an underserved rural areas. Opposition to legislation and proposals (such as reconciliation proposals) that would repeal stepped-up basis, increase capital gains taxes, and/or impose capital gains tax at death, including H.R. 2286 (no title) which would amend the Internal Revenue Code of 1986 to treat property transferred by gift or at death as sold for fair market value, and for other purposes. General support for tax measures to help agriculture including, securing permanent estate tax and capital gains tax law that allows family-owned farms to transfer from one generation to another; making low-income tax rates and business deductions permanent to permit farmers to keep more of their earnings and invest in their businesses; locking in tax code provisions allowing farm operations to match expenses with income, helping manage the seasonal and cyclical nature of their businesses, valuation discounts; Section 1031 - like-kind exchanges; low corporate tax rates; and tax incentives for renewable energy resources.

Client expense: $10,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), HOUSE OF REPRESENTATIVES, SENATE

Reviewed the Joint Committee on Taxations list of 78 expiring tax provisions. Provisions Expiring on December 31, 2021 Credit for alternative fuel vehicle refueling property Alternative fuels include biodiesel, renewable biodiesel, and ethanol. The credit incentivizes the installation of pumps to increase consumer access to biofuels. Second generation biofuel producer credit Second generation biofuel, also known as advanced biofuel, is manufactured from non-food biomass like switchgrass, woodchips, and non-food parts of plants. The credit incentivizes the production of fuel from these sources that provide new markets for agricultural commodities. Tax incentives for starting facility construction date for energy produced from wind and other renewable resources. Farmers benefit from a stable source of income that comes from leasing a footprint for development Provisions Expiring on December 31, 2022 Incentives for biodiesel and renewable diesel Biodiesel is a cleaner-burning renewable fuel that can be manufactured from vegetable oils, animal fats and recycled cooking oils. Biodiesel production not only helps farmers by expanding markets for commodities, but in many rural areas of the country, biodiesel production facilities are a driving force in local economies and broaden the local tax base. Provisions Expiring on December 31, 2023 Tax incentives for starting facility construction date for increased business solar, small wind and other renewable resources. Farm Bureau supports policies that help create a diverse domestic fuel and energy supply. Power generated from distributed wind and rental income from solar panels provide farmers with a stable source of income and contribute more broadly to the local economy. Provisions Expiring on December 31, 2025 Twenty-six tax provisions that expire at the end of 2025 were passed as part of the Tax Cut and Jobs Act (TCJA). Modification of individual income tax rates More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. As such the pay taxes using individual tax rates. If lower TCJA tax rates and expanded tax brackets are not extended, the result will be a tax increase on the majority of farm and ranch businesses. Increase in exemption amount and phaseout threshold of individual AMT The TCJA increased the Alternative Minimum Tax threshold for individuals: Rolling back the higher AMT thresholds will cancel out important deductions and credits put in place by TCJA. Limitation on deduction for State, local, etc., taxes (SALT) The SALT deduction permits individuals to deduct taxes paid to state and local governments. The TCJA capped the deduction at $10,000 per household. However, farmers and ranchers are still able to take a SALT deduction for taxes paid by their businesses. Qualified business income deduction (Sec. 199A deduction) More than 98 percent of farms and ranches operate as pass-through businesses - sole proprietorships, partnerships and Sub S corporations. The TCJA created a new 20 percent business income deduction for pass-through businesses referred to as Sec. 199A. Repealing the Sec.199A business income deduction would expand the tax base of pass-through businesses, increasing their taxes and erasing much of the benefit of the TCJA. Increase in estate and gift tax exemption The TCJA doubled the estate tax exemption to $11 million person/$22 million couple indexed for inflation. If the exemption is allowed to revert back, more farms and ranches will be subject to estate taxes. And, as long as the exemption level is temporary, money must be spent on estate tax planning rather than on growing farm and ranch businesses Provisions Expiring on December 31, 2026 Additional first-year depreciation with respect to qualified property (Bonus Depreciation. Bonus depreciation (expensing) allows farmers to better manage their taxes by offsetting income with deductions for their business expenses. This is especially critical because like-kind exchanges for equipment and livestock are repealed. Election of additional depreciation for certain plants bearing fruits and nuts This provision improves cash flow by allowing farmers to deduct 50 percent of pre-productive costs like pruning, irrigation, fertilizer, and spraying in the year the expense is incurred rather than having to wait to deduct them over the productive life of the plant or tree. Provisions Expiring on December 22, 2027 Expensing of certain costs of replanting citrus plants lost by reason of casualty This provision allows citrus farmers whose trees have been destroyed by weather, disease, pest or other disaster to deduct the full cost of replanting instead of having to wait and deduct the costs over the productive life of the tree. Supported S. 480 or H.R. 1381, Main Street Tax Certainty Act The Section 199A business income deduction, passed as part of the Tax Cuts and Jobs Act, allows pass through businesses to take a deduction worth 20 percent of their business income. Ninety-eight percent of farms and ranches are organized as pass through businesses. The 199A deduction is temporary and expires at the end of 2025. If it is not made permanent, the result will be a huge increase in the taxes that farmers and ranchers pay and leave them without ways to deal with the cyclical and unpredictable nature of their businesses. Supported HR 1712, Death Tax Repeal Act and S.617, Death Tax Repeal Act of 2021 Continued support of 1031 like kind exchanges. By using Section 1031, farmers and ranchers are able to defer taxes when they sell real property, such as land or buildings, and replace it with similar property. Without Section 1031 like-kind exchanges, farmers and ranchers might have to incur debt to continue their farm or ranch businesses or, worse yet, delay essential improvements needed to maintain the financial viability of their farm or ranch. Farmers and ranchers frequently use like-kind exchanges to: Consolidate distant parcels of land; Obtain more productive land; Mitigate environmental impacts; Expand their operation to include young or beginning farmers; Upgrade structures like greenhouses or buildings used to house animals; or Move out of the path of urban development. Continued support of low capital gains. Capital gains taxes are imposed on the sale of land, buildings, breeding livestock and some timber. The tax is owed on the amount that the property increased in value since it was purchased. The impact of capital gains taxes on farming and ranching is significant because production agriculture requires large investments in land and buildings that are held for long periods of time, during which land values can more than triple. The current top capital gains tax rate of 20 percent is typically only assessed on high-income taxpayers. However, farmers and ranchers often pay the top rate because their capital gains can be realized in a single year, for example when a farm is sold. This high rate discourages improvements that advance sustainable practices and top notch animal care on farms. Capital gains taxes make it harder for beginning farmers to get started because they create a disincentive for established farmers to sell land and buildings. Land and buildings account for nearly 80% of farm and ranch assets. Eliminating or reducing the capital gains tax would make farming more accessible to beginning and young farmers. Opposed HR 2286, which would do away with stepped up basis. A capital gain is a measure of an assets appreciation - the difference between the amount received when an asset is sold and the assets basis/purchase price. Typically, capital gains are taxed when an asset is sold. Under current law, however, transfers at death are not treated as a sale and the capital gain is not taxed. In addition, the basis of the property is stepped up to current value so that if the property were sold, capital gains taxes would only be paid on appreciation since the property was inherited. The current top capital gains tax rate is 20 percent. The value of family-owned farms and ranches are tied to illiquid assets such as land, buildings and equipment. With a majority, 82%, of farm assets in illiquid farm real estate, producers have few options when it comes to generating cash to pay taxes at death. When taxes at death on an agricultural business exceed cash and other liquid assets, surviving family partners may be forced to sell land, buildings or equipment needed to keep their businesses running. This not only can cripple a farm or ranch operation, but also hurts the rural communities and businesses that agriculture supports. The harm caused to agricultural businesses that comes from taxes imposed at death is multiplied when both estate taxes and capital gains taxes are imposed.

Client expense: $15,000 · Firm income: Not reported

Government targets: Agriculture, Dept of (USDA), Environmental Protection Agency (EPA), Federal Motor Carrier Safety Administration, HOUSE OF REPRESENTATIVES, SENATE, Transportation, Dept of (DOT)

S. 1251 Growing Climate Solutions Act H.R. 1603 Farm Workforce Modernization Act H.R. 2286 and the STEP Act in the Senate - ending stepped-up basis for capital gains HR. 2370 Ag-valuation of land H.R. 1712 and S. 617 - Death Tax Repeal Act

Client expense: $20,000 · Firm income: Not reported

Government targets: HOUSE OF REPRESENTATIVES, SENATE