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i J Strategies to Revitalize Rural America Finally, the tax code can provide incentives for charitable giving in support of community development. Many rural retirees hold substantial assets and are in a position to give back to their community. The state of Montana provides income tax incentives for people to donate to community foundations and other nonprofit charitable initiatives to foster community development and community institutions. It is estimated to have created $74 million of endowment for community development over five years at a cost of $24 million. Boost Renewable Energy Opportunities Renewable energy production offers rural communities the chance to become energy producers, rather than energy importers. Recent reductions in the cost of wind generation of electricity combined with federal tax credits open opportunities on the windswept plains. State policy - makers can give a boost to wind energy de- velopment by establishing a requirement for the minimum percentage of a state's electricity that must be generated from renewable sources. In Nebraska, the Legislature may need to revise its longstanding policy of requiring public power producers to provide power at the lowest cost possible, to allow environmentally friendly alternatives that support com- munity development. Other states have adopted tax credits and public funding for generating electricity from renewable resources. States also have numerous tools to promote development of liquid fuels from biomass, including providing incentive funds for developing biofuel projects and requiring that service stations sell gasoline that includes biofuel blends. Encourage E- Business over the Internet States can act to overcome the digital divide — to ensure that rural people have access to high -speed Internet service. The policy options are too numerous and complex to discuss here. New technological developments are reducing, though not eliminating, barriers to quality Internet service in rural areas. The key rural development challenge is ensuring that rural businesses are able to use the full potential of the Internet to sell in large, distant markets. The initial impact of the Internet may be more negative than positive for rural economies by enabling distant retailers to penetrate rural markets formerly controlled by rural busi- nesses. States should consider options for funding or directly providing technical assistance to rural busi- nesses on how to use the Internet to its full advantage in reaching new, distant markets. Distribute State Job Locations State expenditure is a powerful driver of economic development. Where the state spends, the economy grows. Typically, state expenditures are concentrated in the capital city and metropolitan centers. But states can establish explicit policies to distribute state jobs and money to rural areas when feasible. Page 22