Pub 10 2021 Issue 2

Pub. 10 2021 Issue 2 7 alone. Yes, Kansas banks and bankers stepped up during this crisis, and Kansas policymakers noticed. Achieving tax equity for ag real estate and rural housing loans was not an easy task. Team KBA invested significant time and resources for nearly three years, consistently reminding state lawmakers that a level playing field would benefit ag/rural borrowers. We also stressed that tax equity is paramount to preserving access to local credit and sustaining the community bank model long-term. I want to personally thank every Kansas banker, bank director and bank customer that helped us deliver a winning message at the Kansas Statehouse. Rest assured, KBA is not resting on any laurels with the adoption of Senate Bill 15. Our tax equity efforts now shift to Congress and the adoption of the Enhancing Credit Opportunities for Rural Americans (ECORA). As a reminder, the ECORA Act creates a targeted federal income tax exemption further enabling banks to offer more competitive interest rates for ag real estate and rural housing loans. Kansas bankers should take pride in Senator Jerry Moran leading the charge for the ECORA Act in the U.S. Senate. Identical legislation has already been introduced (H.R. 1977) in the U.S. House of Representatives by Rep. Ron Kind (D-Wisconsin) and Rep. Randy Feenstra (R-Iowa). Kansas bankers are not alone. Advancing the ECORA Act is also a top legislative priority of the American Bankers Association and the Alliance of State Bankers Associations. With Congress expected to tackle federal tax reform this fall, it’s imperative that bankers nationwide garner support for the ECORA Act before those tax reform deliberations get underway. You’ve undoubtedly read that President Biden is publicly calling for an increase of the federal corporate income tax rate from 21% to 28%. With more than $5.3 trillion in supplemental spending authorized by Congress the past twelve months to battle COVID-19 and additional spending on infrastructure now at the top of the Biden Administration’s priority list, it’s difficult to see a path forward that doesn’t include some level increase for both corporate and individual income taxes. Our industry and our customers’ reality is any income tax rate increase will create an even more unlevel playing field with tax-exempt competitors, including the Farm Credit System. Now is the time for Congress to advance the ECORA Act to ensure farmers, ranchers and rural homeowners that rely upon their local bank are not caught in the tax and spend crossfire. At a special ceremony held at the Statehouse, Kansas Governor Laura Kelly recently signed Senate Bill 15 (Economic Recovery & Tax Equity) into law.