Bill > HB1501

This bill amends the Illinois Income Tax Act to create a tax credit program for agricultural asset owners who sell or rent their assets to beginning farmers. The credit applies to taxable years starting January 1, 2025, and offers different credit percentages depending on the type of transaction: 5% for sales or certain lease types, and 15% for commodity share leases. There are several key limitations: no single sale or lease can generate more than $50,000 in credits per year, and the Department of Agriculture can approve no more than $5 million in credits annually from 2025-2030, increasing to $10 million after 2030. To qualify, beginning farmers must have limited agricultural income (less than 10 years), intend to actively farm in Illinois, and obtain certification from the Department of Agriculture. Lease agreements must be between 2-5 years long, and applicants must apply by August 1 of the taxable year. The credit can be carried forward for up to 5 years if it exceeds the taxpayer's current tax liability. The bill defines various terms like "agricultural asset" and "beginning farmer" to provide clarity on the program's scope and eligibility requirements.