Nebraska Leads the Way to Help Beginning Farmers and Ranchers
Feb. 10, 2012
Nebraska continues to lead the nation with efforts to provide an incentive for owners of agricultural assets to rent those agricultural assets to beginning farmers and ranchers. The Nebraska Beginning Farmers Tax Credit program provides owners of Nebraska agricultural assets such as land, livestock, machinery, grain storage, livestock facilities or irrigation equipment a state income tax credit incentive to rent to a beginning farmer/rancher, rather than someone that is more established.
Owners of Nebraska agricultural assets can earn a 10% state income tax credit for providing a beginner a three-year cash lease, or a 15% state income tax credit for providing a beginner a three-year share lease. Owners can be either individuals or business entities such as trusts, partnerships, corporations or limited liability companies (LLC). In order for owners of Nebraska agricultural assets to benefit from the Beginning Farmer Tax Credit program, they must of course, be Nebraska residents or be subject to paying Nebraska state income tax.
Learn more about the Farmers Tax Credit in this February 1 Cornhusker Economics article by David Aiken.