Tax credit seeks to support Nebraska veteran farmers
LYONS, NEBRASKA – Sen. Carol Blood, of Bellevue, introduced LB 5, Change the Beginning Veteran Farmer Tax Credit Act, today at the state capitol. The bill seeks to expand Nebraska’s existing beginning farmer tax credit program by adding a 1 percent tax incentive for property owners who rent their agricultural land to a qualified beginning veteran farmer.
“A veteran’s sense of service and work ethic draw a distinct parallel to the skills and dedication required for successful farming and ranching,” said Jordan Rasmussen, policy manager with the Center for Rural Affairs. “However, access to the land and financial resources needed to transition from military service to farming can pose a significant challenge.”
Under current statute, a 10 percent credit on cash rent, or 15 percent credit on the value of a sharecrop or cow-calf share rent, is available to the property owner when they rent to a qualified beginning farmer. The incentive is issued as a refundable income tax credit. The proposed revision would increase these incentives to 11 percent and 16 percent if the property is rented to a qualified beginning veteran farmer.
“Encouraging agricultural property owners to rent farm land to veterans allows them to pursue a career in farming,” Rasmussen said. “As farmers and landowners look to transition their operations, renting to a beginning veteran farmer is not only an investment in an individual, but also an investment in rural communities and the state’s economy.”
Released today, a fact sheet on this proposed credit is available at cfra.org/publications/BeginningVeteranFarmerTaxCredit. The Center for Rural Affairs endorses the Beginning Veteran Farmer Tax Credit.
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