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IL HB2750

IL HB2750
INC TX-BEGINNING FARMER


summary

Introduced
02/18/2021
In Committee
03/27/2021
Crossed Over
Passed
Dead
04/08/2022

Introduced Session

102nd General Assembly

Bill Summary

Amends the Illinois Income Tax Act. Creates an income tax credit for an owner of an agricultural asset who sells or rents the agricultural asset to a beginning farmer. Provides that the credit shall be equal to: (1) 5% of the lesser of the sale price or the fair market value of the agricultural asset, up to a maximum of $32,000; or (2) 10% of the gross rental income in each of the first, second, and third years of a rental agreement, up to a maximum of $7,000 per year. Provides that the taxpayer shall apply with the Department of Agriculture. Provides that the Department of Agriculture may not approve more than $5,000,000 in credits under those provisions in any one taxable year. Effective immediately.

AI Summary

This bill creates an income tax credit for owners of agricultural assets who sell or rent those assets to beginning farmers in Illinois. The credit is either 5% of the sale price or fair market value of the asset, up to $32,000, or 10% of the gross rental income for the first three years of the rental agreement, up to $7,000 per year. The owner must apply to the Department of Agriculture for approval of the credit, and the Department cannot approve more than $5 million in credits per year. The bill defines "agricultural asset" and "beginning farmer" and provides rules for the use and transferability of the tax credit.

Committee Categories

Budget and Finance

Sponsors (1)

Last Action

Rule 19(a) / Re-referred to Rules Committee (on 03/27/2021)

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