WASHINGTON, D.C. – U.S. Rep. Ron Lewis (KY-02) today introduced H.R. 833, The Rural Communities Investment Act, legislation that would provide tax initiatives to make the interest income on farm real estate and certain rural housing loans exempt from federal taxation. Lewis first introduced his bill in the 109^th Congress.   

“Rural communities are facing sharp declines in population and business development due to urban migration and consolidation trends in U.S. Agriculture,” said Lewis. “This legislation would help make rural America a more attractive place to live and do business.”

H.R. 833 would provide tax incentives for banks to facilitate lower-cost financing options for qualified individuals. These incentives would apply largely to farm purchases and home loans in communities of 2,500 or less.

“By making this farm real estate and rural housing tax incentive widely available, we can increase the diversity of financing and credit options available for people who live and work in small communities,” said Lewis. “More financing options will encourage greater competition among lenders and better rates for borrowers, providing a solid foundation for new investment and economic stability in America’s small towns.”

The Rural Communities Investment Act has earned the support of the American Bankers Association and the Kentucky Bankers Association:

 “The Rural Communities Investment Act will strengthen the rural economy and give Americans living in rural areas more opportunities to grow and prosper,” said Executive Director of Congressional Relations and Public Policy Floyd Stoner. “The ABA commends Congressman Lewis for his leadership on issues of importance to farmers, ranchers and the rural economy.”

“The Kentucky Bankers Association wholeheartedly supports this bill,” said Kentucky Bankers Association President and CEO Ballard W. Cassady. “The Rural Communities Investment Act will increase competition for farm and rural housing loans, create a savings for the consumer, and strengthen the economies of rural America."

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