To Create An Income Tax Credit For Property Tax Paid On Certain Poultry Structures; And To Offset The Property Tax Burden On Poultry Farmers.
Impact
The introduction of HB 1366 is anticipated to alleviate the financial burdens on poultry farmers who face high property tax responsibilities. By allowing this tax credit, the bill seeks to enhance the economic viability of poultry operations within the state, encouraging growth in the agricultural sector. The measure reflects recognition of the significant role that poultry farming plays in local economies and aims to bolster the stability of this industry amid varying economic conditions.
Summary
House Bill 1366 aims to provide financial relief to poultry farmers by creating an income tax credit applicable to property tax paid on specific poultry structures. This initiative targets facilities involved in commercial poultry production, including broiler houses, turkey grow-out houses, laying houses, hatching units, nursery units, and breeding houses. The bill proposes a tax credit equal to 20% of the real property taxes paid by the taxpayer during the tax year on these structures, with provisions for refunding any excess credit that surpasses the taxpayer's income tax liability.
Contention
There may be potential points of contention surrounding the bill, particularly in relation to how it impacts state revenue and the overall tax structure. Critics might argue that providing tax credits could lead to reduced funding for essential public services, as foregone tax revenue must be balanced against the needs of other sectors. In contrast, supporters of the bill, including agricultural advocates and farmers, contend that the long-term economic benefits derived from invigorating the poultry sector will ultimately outweigh any short-term financial implications for the state.