LB 177 would improve the Nebraska Micro Enterprise Investment Tax Credit (see details below). It provides a 20 percent investment tax credit up to $10,000 for owner-operated businesses with five or fewer employees. But one critical element was eliminated in committee.
The total tax credits for all microenterprises in the state would continue to be limited to $2 million per year, on a first come first serve basis. Once $2 million in tax credits are claimed, all subsequent applications are denied. Meanwhile, tax credits for big businesses are uncapped at a cost 50 - 60 times that amount.
Please call or write your Senator today using the contact information provided at -
http://www.cfra.org/take_action/alerts/ne_micro. Urge them to support LB 177 to improve microenterprise tax credits. Most importantly, urge them to amend LB 177 to remove the $2 million cap on total credits.
If we can afford over $100 million annually for big business, surely we can afford more than 1/50th of that amount for small businesses that have been the backbone and true economic engine of Nebraska's economy, especially in rural communities.
Under current law, the microenterprise tax credit applies only to new investment in plant, equipment and employees. Under LB 177, the credit would also apply to health insurance, legal services, advertising and professional fees. In agriculture, the credit would be targeted to beginning farmers and ranchers. It would also be available for diversification into nontraditional enterprises such as agritourism and specialty crops.
Please find your Senator's contact information at the links above and under the title of this post and then write or call your Senator today!
Post a comment here or contact John Crabtree, firstname.lastname@example.org
Center for Rural Affairs
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