Nebraska Sen. Connealy introduces a tax credit for small business, farms and ranches.
Nebraska state Senator Matt Connealy has introduced The Small Business Micro Enterprise Tax Credit Act (LB 309) to provide tax credits for starting small businesses and family farms and ranches in economically depressed rural and urban areas.
Unlike most job creation tax incentives, it is aimed at owner operated small businesses employing five or fewer people and at beginning farmers and ranchers. It would support self-employment as well as job creation. It would provide a 20% tax credit for investment in qualifying businesses. The credit would be refundable – meaning that businesses would receive a check from the state if it has insufficient income to make use of a tax break.
As this legislation was introduced, the legislature was being lobbied for even more big business tax breaks. But state policy is already out of balance.
Nebraska invests disproportionately in big business and high growth areas and under invests in small business and struggling communities. Any new tax breaks for big business should be offset by measures to correct the excesses of the current law and balanced by passage of LB 309.
It's time to start investing in the economic engine for the rest of Nebraska – small enterprise.
For additional comments or questions please contact the Center for Rural Affairs, www.cfra.org, 145 Main St., PO Box 136, Lyons, NE 68038. (402) 687-2100.