Suggested Tax Breaks Aimed at Rural Living

WASHINGTON - A bipartisan group of senators is developing incentives designed to bring people back to small towns and wants to add tax credits to President Bush's economic plan, The Associated Press reported.

The lawmakers propose repaying half of a recent graduate's student loan, up to $10,000, and providing a $5,000 tax credit for home purchases. In return, people would have to spend five years living and working in counties where population has dropped by at least one-tenth over the past 20 years.

The lawmakers want the government to match individual contributions to tax-free homestead savings accounts. The proposal would extend tax credits to businesses that relocate or expand in small towns, and set up a venture capital fund for business investment.

"For me, this is really about trying to create hope and vision that has seen a decline in population while the rest of the country has been growing," Sen. Sam Brownback, R-Kan., said Wednesday. "Our plan is to try to get a focus on this area that extends primarily from north Texas up through the Midwest and northern Plains states."

-- NYSSCPA.org News Staff

Posted on 03/14/03