Community banking advocates across the country urged Senate leaders to include legislation to reduce loan interest costs for farmers, ranchers and rural homeowners in a letter endorsed by the Independent Community Bankers of America (ICBA) and 44 state affiliates.
The Access to Credit for our Rural Economy (ACRE) Act (S. 838) proposes to amend the Internal Revenue Code of 1986 to exclude interest received by a qualified lender on loans secured by rural or agricultural real property from gross income.
The trade groups contend that including the bill’s language in the tax portion of the Senate reconciliation bill would provide critical relief to individuals living and working in rural communities. The trade groups said including a version of the ACRE in the House reconciliation bill would be “a critical first step” towards helping rural business owners and homeowners.
“To be most effective in providing economic relief, we urge the Senate to fully restore, or increase to the maximum extent possible, the ACRE tax exemption for interest on loans secured by agricultural land as well as homes in rural areas,” the trade groups wrote.
The letter was signed by ICBA and 44 of its state-level affiliates, championing it as a way to provide “meaningful economic relief for farmers, ranchers and rural homeowners.”