Bill > SB4193

This bill, the Farmer Tax Benefit Act, establishes a new income tax credit for landowners in Illinois, effective for taxable years beginning after December 31, 2027, to incentivize the protection of natural and agricultural resources. Landowners can receive a credit equal to either 100% of the fair market value of a "qualified donation" of a land protection agreement or 50% of the fair market value of a "qualified donation" of a fee simple interest (full ownership) or remainder interest (ownership after another person's interest ends) in qualified real property. A "qualified donation" involves transferring these interests to a "conservation agency," which includes government entities or accredited non-profit organizations, for conservation purposes in perpetuity. The total amount of tax credits issued statewide in any fiscal year is capped at $7,500,000, and any single landowner's credit for one donation cannot exceed $500,000. The Department of Natural Resources (DNR) will administer the program, approving applications based on qualified appraisals and deeds, and the credit can be used to offset income tax liability, with any excess carried forward for up to five years, or it can be transferred to another party for a fee. The bill also includes provisions for pass-through entities, family ownership exceptions, and reporting requirements for the DNR.