Senate bill looks at rural America's needs

Rural America -- including Southwest Nebraska and Northwest Kansas -- would greatly benefit from the provisions of Senate Bill 1637, a many-faceted amendment to the Internal Revenue Code. The plan has passed the Senate by an overwhelming 92-5 margin, and is now awaiting action in the House of Representatives.

With strong leadership from U.S. Sen. Chuck Hagel (R-Neb.) and U.S. Rep. Tom Osborne (R-Neb.), the plan is packed with provisions which would be helpful to Nebraska and Kansas, including:

* New Homestead provisions to provide tax credits for starting or expanding businesses in high out-migration counties, including a number in Southwest Nebraska and Northwest Kansas;

* Changes in the ethanol tax formulas, benefitting the plant already in full production near Trenton, and also aiding those in the early stages of development at Cambridge and at the Perry site west of McCook;

* Extension of a tax credit for ethanol producers, also giving a boost to the ethanol developments in this area and other Nebraska and Kansas locations;

* Creation of a tax credit for solar and wind power generators to those who produce energy from agricultural livestock and small irrigation sources;

* Establishment of a tax credit to facilities that produce fuel from agricultural and animal waste:

* Extension of a credit to facilities that produce fuel from agricultural and animal waste, and:

* Creation of a tax credit for solar and wind power generators.

These are just a few of the provisions of the wide-ranging bill, which will also make it easier for U.S. businesses to trade in international markets.

Following Senate passage, Sen. Hagel declared: "This bill includes important provisions to enhance America's competitive position in the world, increase energy production and conservation, and expand rural investments for states like Nebraska."

In the urban-dominated legislative halls in Washington, rural interests are often overlooked. That's why Senate Bill 1637 is such a welcome change. For once, provisions are included that can make a difference in rural America.

Now that the bill has passed the Senate, the focus shifts to the House of Representatives. In a telephone visit this morning, a legislative assistant in Rep. Osborne's office, Jeremiah Blake, said the congressman is working with the chairman of the House Ways and Means Committee, Rep. Bill Thomas of California, to include ethanol and new homestead act provisions in the House version of the bill.

We hope that happens, clearing the way for convincing action on energy, conservation and investment programs by the full Congress. The tax credit changes will help the U.S. in world trade. And, in the process, it will also be a boost for rural America.