The National Council of Farmer Cooperatives is expressing concern about the mandatory aspect of proposed depreciation rules in capital cost recovery legislation being considered by the House Ways and Means Committee. They believe that the legislation would benefit large businesses but not farmer cooperatives. They argue that if accelerated depreciation is made mandatory, it would be a disincentive for cooperatives. Agricultural cooperatives distribute their net earnings to tax patrons based on the business done by the patrons. The proposed legislation has the potential to distort patronage dividends paid to patrons, which could discourage additional investment. The Council suggests allowing cooperatives to elect out of using the legislation or increasing the carryforward period for losses. They propose inserting specific language into the legislation to address these concerns.