Representatives Ron Kind (D-WI) and Wally Herger (R-CA) have introduced the “Rural Microbusiness Investment Credit Act of 2010.” The Act would cut taxes of rural microbusinesses and beginning farmers and ranchers by 35 bucks for every $100 dollars of eligible investment – up to $10,000 lifetime tax savings. For those who owe no taxes in the current year, the credit could be carried back to get a refund of taxes paid in the prior five years.

We wrote in last month’s newsletter that Colorado Senator Michael Bennet was offering this proposal as an amendment to the Senate Small Business Jobs Bill. But that bill has stalled. Introduction of the proposal as freestanding legislation positions it to be added to tax bills in future years.

The Center for Rural Affairs developed the proposal.