Are you wanting to invest in a new livestock operation or expand your current one? You may qualify for a refundable income tax credit of up to $500,000 thanks to the work of Nebraska Farm Bureau and other agricultural organizations. But you don’t want to wait to apply, as money will be awarded on a first come, first served basis.
With the strong support of Farm Bureau, state senators recently passed LB 1261, a bill to increase the amount of tax credits available each year under the Nebraska Advantage Rural Development Act from $1 million to $10 million. The bill also increases the maximum amount available for certain livestock modernization or expansion projects from $150,000 per application to $500,000.
Whether building a new barn, buying a new feeder, or installing state of the art smart technology, this is an opportunity to get a leg up in an industry that is constantly improving by modernizing operations and increasing capacity. This includes livestock housing, confinement, feeding, production, and waste management. The grant can be up to 10 percent of a total project estimated investment cost. The total investment cannot be less than $50,000, but an investment of up to $5,000,000 can be applicable.
Projects must meet certain requirements for approval. Applications must be submitted by a single taxpayer or entity, who must estimate tax credits of investment and employment growth. If you have employees, you must be enrolled in E-verify, the federal electronic verification program used to confirm whether employees are authorized to work in the United States.
You can submit multiple applications for multiple investment projects. November 1, 2022 is the final day to apply. Currently, $1,000,000 has been allocated, so $9,000,000 remains for new applicants.
Contact Nebraska Farm Bureau with any questions regarding the Livestock Modernization Act.
For more information and the application, visit: https://revenue.nebraska.gov/incentives/rural/application-guide.
Please note, the application says there is a limit of $150,000, however, that is in the process of being updated. Input the amount you are applying for up to $500,000.