A measure that provides Florida citrus growers with a strong tax incentive to plant more trees and bolster the ailing industry has overwhelmingly passed the U.S. House of Representatives. 

By a 400-20 vote,  Republicans and Democrats approved the Emergency Citrus Disease Response Act which allows growers to immediately expense the cost of planting new citrus instead of the standard 14-year depreciation period under current Internal Revenue Service (IRS) rules.

Florida Citrus Mutual communications manager Andrew Meadows told www.freshfruitportal.com the industry body was 'cautiously optimistic' the bill would also pass the Senate and eventually become law.

The tweak to the IRS code is designed to increase slumping production, and would be available for 10 years.

The bill was passed by the House of Representatives' Ways and Means Committee last week.

"Through this legislation small, medium and large growers will have the opportunity to seek capital from lenders and outside investors to reinvest in Florida citrus," Florida Citrus Mutual executive vice president and CEO Michael W. Sparks said in a release.

"We believe the tax incentive will help yield a positive return on an investment in citrus. We need to attract capital to rebound from HLB [also known as citrus greening disease] and this measure is an important tool to get us there."

The Florida Citrus Mutual estimates the state's citrus industry needs to put more than 20 million trees in the ground over the next 10 years to support existing infrastructure and get production back to where it was before HLB hit production.

Sparks thanked U.S. Rep Vern Buchanan (R-FL), the bill's primary sponsor, as well as U.S. Reps. Tom Rooney (R-FL) and Dennis Ross (R-FL) and the entire Florida delegation.

"What a job by our friends in the House. We look forward to working with Senator Bill Nelson (D-FL) and Senator Marco Rubio (R-FL) to move the bill in the Senate," he said.

Florida growers are now battling HLB, a bacterial disease vectored by the Asian citrus psyllid. It attacks the vascular system of a tree and can kill it within two years.

The disease is endemic to Florida and has reduced production more than 50% over the past decade.

The Florida citrus industry creates a US$10.7 billion annual economic impact, employing nearly 62,000 people and covering about 500,000 acres.

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