Bill > HB3474

This bill amends the Illinois Income Tax Act to create a new income tax credit for farmers and landowners who plant cover crops in Illinois. Starting in 2026, individual taxpayers who plant cover crops at a location within the state can receive a tax credit equal to the total cost of planting those cover crops. The credit can be applied against income taxes imposed by certain sections of the state tax code, though the credit cannot reduce a taxpayer's tax liability below zero. If the credit amount exceeds the taxpayer's current year tax liability, the excess can be carried forward and applied to tax liabilities in the next five subsequent years, with credits applied in the order they were earned. The bill defines a "cover crop" as a plant (though the definition is cut off in the provided text), which are typically plants grown to improve soil health, prevent erosion, manage water, and enhance agricultural sustainability between primary crop growing seasons.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=3474&GAID=18&DocTypeID=HB&SessionID=114&GA=104