Nebraska Farm Bureau
10/18/2024 | News release | Distributed by Public on 10/18/2024 13:56
The Nebraska Farm Bureau is excited to inform members about a new opportunity to improve ...
The Nebraska Farm Bureau is excited to inform members about a new opportunity to improve the quality of your drinking water while also benefiting from a tax credit. The Reverse Osmosis System Tax Credit Act provides Nebraska homeowners a refundable tax credit for installing a reverse osmosis water filtration system at their primary residence. This initiative is particularly beneficial for members in areas where water quality is affected by contaminants such as nitrates, perfluorinated compounds (PFOA/PFOS), and uranium.
What the Tax Credit Covers:
The program offers a one-time refundable credit of 50% of the installation cost up to a maximum of $1,000. This means if you spend $2,000 or more on a reverse osmosis system, you can receive the full $1,000 credit.
This credit is designed to assist homeowners in addressing contaminants that exceed the following thresholds in their drinking water:
- Nitrate Nitrogen: Above 10 parts per million.
- Perfluorooctanoic Acid (PFOA) or Perfluorooctanesulfonic Acid (PFOS): Above 4 parts per trillion.
- Uranium: Above 30 micrograms per liter (30 parts per billion).
- Hazard Index of 1: For certain chemicals such as perfluorononanoic acid (PFNA) and other similar compounds.
Who Can Apply?
This tax credit is available to Nebraska taxpayers who install a reverse osmosis system in their primary residence where water testing results show contamination above the allowed levels. Only one taxpayer per residence is eligible for the credit, making it an exclusive benefit for homeowners meeting water quality requirements.
How to Apply:
- Test Your Water: The first step is to have your drinking water tested for nitrate nitrogen, PFOA, PFOS, Uranium, and the Hazard Index for specific chemicals. Your local health department or a certified lab can assist with these tests.
- Install a Reverse Osmosis System: If your test results indicate contamination above the required thresholds, install a reverse osmosis system to improve the water quality in your home.
- Submit Your Application: Once the system is installed, submit the application to the Nebraska Department of Revenue with water test results and proof of installation cost. Applications will be processed in the order received.
Program Limitations:
The total amount of tax credits available under the program is capped each year. For the fiscal year beginning July 1, 2024, and ending June 30, 2025, the cap is set at $500,000, with the same amount available for the following two fiscal years. Starting in 2027, the cap increases to $1 million annually.
It's important to apply early, as the credit is granted on a first-come, first-served basis. Applications will be processed until the fiscal year's cap is met.
Benefits of Reverse Osmosis Systems:
Reverse osmosis systems are highly effective at removing many contaminants from drinking water, including nitrates, uranium, and perfluorinated chemicals. Many rural areas would benefit from having their well water filtered through reverse osmosis. For those who are not worried about how their water affects their health, it also changes how the water tastes.
How This Program Helps Farmers:
For our members, especially those who rely on well water, ensuring safe drinking water is essential for the health of your family and workers. This program provides a cost-effective way to address water quality concerns while benefiting from a financial incentive through the tax credit.
The Nebraska Farm Bureau encourages all members to consider testing their drinking water and taking advantage of this program if contaminants are found. Safe, clean water is vital to your family, farm, and community's well-being.
For more information about the Reverse Osmosis System Tax Credit or to apply, visit the Nebraska Department of Revenue Reverse Osmosis System Tax Credit Act webpage.
As always, if you have any questions, please feel free to contact Kole Pederson, Director of Environmental & Regulatory Affairs, at [email protected].