Support New Homestead Act of 2003 To Revitalize Rural Communities!

03/21/2003

• On March 12, 2003, the Senate Introduced New Homestead Act of 2003 (S.602) that will Encourage Long-Term Investment for Residents and Businesses in Rural Areas Suffering From High Out-Migration.
• Please Contact your Senators and Leadership in the Senate Finance Committee to Urge them to Cosponsor S. 602.

On March 12, 2003, Senators Byron Dorgan (D-ND) and Chuck Hagel (R-NE) introduced the New Homestead Act of 2003 (S. 602) that aims to help reverse the long trend of population decline in rural America. The legislation will provide incentives to attract new businesses and residents to rural communities. According to Dorgan, the act is "a bill to reward the hard work and risk of individuals who choose to live in and help preserve America's small, rural towns." The bill has been referred to the Senate Finance Committee.

Purpose of the legislation
To address the problem of high population loss in rural America by creating new economic opportunities for small businesses, entrepreneurs, and individuals located in high out-migration counties - counties with a 10% or greater population decline over the last 20 years.

Summary of the legislation

New Homestead Opportunities for individuals who locate in these high out-migration counties

• Forgive up to 50% of college loans for recent graduates who live and work there for 5 years (maximum of $10,000)
• Provide $5,000 tax credit for the home purchases by individuals who locate there for 5 years (or 10% of purchase price, whichever is lower)
• Protect home values by allowing losses in home value to be deducted from federal income taxes
• Establish Individual Homestead Accounts to help build savings and increase access to credit

New Incentives for Businesses to expand or locate in high out-migration areas

• Create Rural Investment Tax Credits to target investments in high out-migration counties
• Accelerate depreciation for equipment purchases tied to Rural Investment Tax Credit projects
• Offer Micro-enterprise Tax Credits to assist small businesses in high out-migration counties

New Homestead Venture Capital Fund to promote business development in high out-migration areas

• Establish $3 billion venture capital fund to invest in businesses in high out-migration counties

Action Plan --- Please contact your Senators to urge them to cosponsor S. 602. If you want to find your Senators contact information, please click the following. Senators

Also, please contact the leaders in the Committee on Finance in the Senate and express your support for S. 602.

If you have any questions or comments please contact Legislative Research Analyst Chil-Sook Hwang by fax: 202-347-1091 or by phone: 1-888-4GRANGE, ext 109. Thank you for your grassroots participation in the National Grange Legislative program.

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