Bill Text: IL HB4857 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Creates the Distressed Farmers Act. Provides that the Department of Agriculture shall fund and administer programs to address the needs of distressed farmers. Provides for a tax credit for distressed farmers. Amends The Illinois Income Tax Act. Provides that for taxable years beginning on or after January 1, 2025, each taxpayer who is a distressed farmer and who incurs qualified farming expenses during the taxable year is entitled to a tax credit in an amount equal to 100% of those qualified farming expenses, not to exceed $50,000 per taxpayer in any taxable year. Provides that qualified farming expenses include: (1) repairing tractors, trailers, and other vehicles; (2) purchasing, repairing, or constructing greenhouses and other covers for agricultural products; (3) purchasing tractors with tillers and other attachments; and (4) planting or harvesting food that will be delivered to an underserved community.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB4857 Detail]

Download: Illinois-2023-HB4857-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4857 Introduced , by Rep. Sonya M. Harper SYNOPSIS AS INTRODUCED:
New Act
35 ILCS 5/241 new
Creates the Distressed Farmers Act. Provides that the Department of Agriculture shall fund and administer programs to address the needs of distressed farmers. Provides for a tax credit for distressed farmers. Amends The Illinois Income Tax Act. Provides that for taxable years beginning on or after January 1, 2025, each taxpayer who is a distressed farmer and who incurs qualified farming expenses during the taxable year is entitled to a tax credit in an amount equal to 100% of those qualified farming expenses, not to exceed $50,000 per taxpayer in any taxable year. Provides that qualified farming expenses include: (1) repairing tractors, trailers, and other vehicles; (2) purchasing, repairing, or constructing greenhouses and other covers for agricultural products; (3) purchasing tractors with tillers and other attachments; and (4) planting or harvesting food that will be delivered to an underserved community.
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A BILL FOR
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AN ACT concerning agriculture.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. Short title. This Act may be cited as the
Distressed Farmers Act.
Section 5. Definitions. As defined in this Act:
"Department" refers to the Department of Agriculture.
"Distressed farmer" means a farmer or an individual
principally responsible for farming leased land with fewer
than 75 acres of land and $500,000 per year in gross revenue or
a farmer who has been denied a Farm Service Agency number
despite 5 or more years of farming.
Section 10. General provisions. Subject to the
appropriation, the Department shall administer and provide
funding for the following:
(1) up to $5,000,000 for paid, year-long apprenticeships
for individuals seeking to work in a direct or support
capacity of a distressed farmer;
(2) up to $5,000,000 for distressed farmers specifically
in need of wells; and
(3) up to $10,000,000 for distressed farmers in need of,
but not limited to, the following expenses:

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(A) repairing tractors, greenhouses, and reefer trucks
and other trucks;
(B) building greenhouses and other covers; and
(C) purchasing tractors with tillers and other
attachments.
Section 90. The Illinois Income Tax Act is amended by
adding Section 241 as follows:
(35 ILCS 5/241 new)
Sec. 241. Distressed farmer credit.
(a) For taxable years beginning on or after January 1,
2025, each taxpayer who is a distressed farmer and who incurs
qualified farming expenses during the taxable year is entitled
to a credit against the tax imposed by subsections (a) and (b)
of Section 201 in an amount equal to 100% of those qualified
farming expenses, not to exceed $50,000 per taxpayer in any
taxable year.
(b) In no event shall a credit under this Section reduce a
taxpayer's liability to less than zero. If the amount of
credit exceeds the tax liability for the year, the excess may
be carried forward and applied to the tax liability for the 5
taxable years following the excess credit year. The tax credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits for more than one year that are
available to offset liability, the earlier credit shall be

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applied first.
(c) As used in this Section:
"Distressed farmer" has the meaning given to that term in
Section 10 of the Distressed Farmers Act.
"Grocery store" means a business that is authorized by the
Department of Human Services to participate in the Women,
Infants and Children Nutrition program and is primarily
engaged in retailing a general line of food, such as canned and
frozen foods; fresh fruits and vegetables; and fresh and
prepared meats, fish, and poultry.
"Qualified farming expense" means an expense related to:
(1) repairing tractors, trailers, and other vehicles;
(2) purchasing, repairing, or constructing greenhouses
and other covers for agricultural products;
(3) purchasing tractors with tillers and other
attachments; and
(4) planting or harvesting food that will be delivered
to an underserved community.
"Underserved community" means a census tract in the State
in which:
(1) at least one of the following conditions applies:
(A) 20% or more of the households are at or below
the federal poverty level, according to the poverty
guidelines updated periodically in the Federal
Register by the U.S. Department of Health and Human
Services; or

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