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(Lincoln, NE) Gov. Dave Heineman today held a ceremonial bill signing for LB 990, a bill introduced by Sen. Roger Wehrbein of Plattsmouth. The new law amends the Nebraska Advantage jobs-creation, economic incentive package passed during the 2005 session to offer tax credits for agricultural operations investing in livestock modernization and expansion. The law also expands the Beginning Farmer Tax Credit Act.
“One of the strengths of the Nebraska Advantage was the opportunities it provides for rural communities and those engaged in agricultural production,” Gov. Heineman said. “This expansion of both the Advantage package and the Beginning Farmer Credit offer two important changes to the way our tax code treats the people working in agriculture.”
The livestock tax credit for modernization and expansion allows the people pursuing eligible facilities projects to qualify for an income tax credit of 10 percent for any investment of more than $50,000, providing up to $30,000 in income tax relief.
The Beginning Farmer Tax Credit expansion expands the tax credit against income liability for the owners of agricultural assets offered in the program to 10 percent of gross income if the land, equipment, livestock or building is offered as a cash rental or up to a 15 percent of a share rental. The original act offered tax credits of up to 5 percent. The law also provides a one-time, refundable income tax credit for beginning farmers, which will cover the costs of participating in the financial management program required for eligibility.
Greg Ibach, director of the Nebraska Department of Agriculture, said, “Livestock production accounts for 65 percent of Nebraska’s annual agricultural cash receipts and because of this, the industry's success or failure is reflected on our rural main streets. LB 990 recognizes this important link and rightfully qualifies livestock for program incentives dedicated to fostering rural economic development.
“I also am pleased that the legislation makes changes to the Nebraska Beginning Farmer Tax Credit Act. Statistics show a steadily increasing average age for our farmers and ranchers, while we continue to see declining numbers of young and beginning farmers. LB 990 makes changes that hopefully will encourage more retiring producers to partner with those looking to get into the agriculture industry.”
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