Hoeven: Final Bill Provides Tax Relief for North Dakotans, Small Businesses, Farmers and Ranchers

Legislation Cuts Taxes for Individuals, Families and Small Businesses

WASHINGTON – Senator John Hoeven issued the following statement after the Senate and House Conference Committee released the final tax relief legislation, which lowers rates across the board for individuals and families and provides relief for small businesses, farmers and ranchers. 


“We worked hard to ensure that the tax relief bill works for North Dakota,” said Hoeven. “This legislation lowers rates across the board for individuals and families, enabling hard-working Americans to keep more of their paycheck. At the same time, it lowers rates and provides relief for small businesses, including our farmers and ranchers. This will enable us to grow our economy and create more jobs with higher wages.”


Tax relief, combined with regulatory relief, will empower the economy to grow and increase government revenues. The legislation does not cut spending to agriculture or other programs nor does it require across the board spending cuts due to paygo requirements. Though the paygo rules have been brought up as a concern, Senate and House leadership have committed to waive them if needed.


Hoeven highlighted important provisions in the final tax plan, including: 


Cuts Tax Rates Across the Board for Hardworking Individuals and Families

  • Provides a net tax cut of more than $2,059 for a median income family of four. 
  • Increases the standard deduction, which means that Americans will not be taxed on the first $12,000 of income for individuals, $24,000 for married couples and $18,000 for a single parent with dependents. 
  • 9 out of 10 taxpayers will likely use the expanded standard deduction.
  • Doubles the Child Tax Credit to $2,000 per child
  • Preserves the Child and Dependent Care Tax Credit
  •  Continues tax deductions, including for: 
    • Student Loan Interest and Tuition Waivers.
    • Medical Expenses
    • Charitable Contributions
    • Home Mortgage Interest


Benefits to Small Businesses, Farmers and Ranchers

  • For the first five years, allows full expensing or writing off the cost of new investments, which is phased down over an additional four year period.
  •  Expands the Section 179 expensing of equipment on a permanent basis.
  • Doubles the estate tax exemption, while maintaining the step-up in basis for capital gains.
  • Maintains interest deductibility as well as the property tax deduction for small businesses, farmers and ranchers.


Additionally, during Senate debate on the bill, Hoeven worked to secure: 

  • Increasing the tax deduction to 20% for qualified pass-through income, which reduces the tax burden for small businesses set up as a partnerships or pass-through entities. 
  • Maintaining the state and local property tax deduction up to $10,000 for individuals and families.
  • Maintaining the IC-DISC program, which enables small and medium businesses, including manufacturers, to reduce taxes on portions of their export income. 
  • Greater flexibility for implement and auto dealers to expense interest on inventory. The legislation includes a Hoeven amendment that exempts businesses with floor plan financing from the interest expense limitation, subject to further rules. 


Hoeven has been working to ensure tax reform works for North Dakota families and businesses. In November, the senator held roundtables in Bismarck and Fargo to gather input from North Dakotans. Hoeven has repeatedly spoken on the Senate floor to outline tax reform priorities. Additionally, earlier this fall, the senator held a series of roundtable discussions in Minot, Grand Forks and Bismarck with the North Dakota small businesses and farmers and ranchers to gather input.