Illinois 2023-2024 Regular Session

Illinois House Bill HB1343 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1343 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: 35 ILCS 5/234 new 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. LRB103 05778 HLH 50798 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1343 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: 35 ILCS 5/234 new 35 ILCS 5/234 new 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. LRB103 05778 HLH 50798 b LRB103 05778 HLH 50798 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1343 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 5/234 new 35 ILCS 5/234 new
4	4	35 ILCS 5/234 new
5	5	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.
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8	8	A BILL FOR
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11	11	1 AN ACT concerning revenue.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Income Tax Act is amended by
15	15	5 adding Section 234 as follows:
16	16	6 (35 ILCS 5/234 new)
17	17	7 Sec. 234. Agricultural assets; beginning farmer.
18	18	8 (a) For taxable years beginning on or after January 1,
19	19	9 2024, an owner of an agricultural asset may take a credit
20	20	10 against the tax imposed under subsections (a) and (b) of
21	21	11 Section 201 for the sale or rental of the agricultural asset to
22	22	12 a beginning farmer in the amount approved by the Department of
23	23	13 Agriculture. The amount of the credit shall be equal to:
24	24	14 (1) 5% of the lesser of the sale price or the fair
25	25	15 market value of the agricultural asset, up to a maximum of
26	26	16 $32,000; or
27	27	17 (2) 10% of the gross rental income in each of the
28	28	18 first, second, and third years of a rental agreement, up
29	29	19 to a maximum of $7,000 per year.
30	30	20 (b) The owner of the agricultural asset must apply to the
31	31	21 Department of Agriculture for approval of the tax credit under
32	32	22 this Section. The application must:
33	33	23 (1) identify the beginning farmer to whom the assets
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1343 Introduced , by Rep. Lance Yednock SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 5/234 new 35 ILCS 5/234 new
39	39	35 ILCS 5/234 new
40	40	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.
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42	42	LRB103 05778 HLH 50798 b
43	43	A BILL FOR
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68	68	1 are sold or rented;
69	69	2 (2) specify whether the beginning farmer is a brother,
70	70	3 sister, ancestor, or lineal descendant of the taxpayer;
71	71	4 and
72	72	5 (3) contain any other information deemed necessary by
73	73	6 the Department of Agriculture.
74	74	7 The Department of Agriculture may not approve more than
75	75	8 $5,000,000 in credits under this Section in any one taxable
76	76	9 year.
77	77	10 (c) In no event shall a credit under this Section reduce
78	78	11 the taxpayer's liability to less than zero. If the amount of
79	79	12 the credit exceeds the tax liability for the year, the excess
80	80	13 may be carried forward and applied to the tax liability of the
81	81	14 5 taxable years following the excess credit year. The tax
82	82	15 credit shall be applied to the earliest year for which there is
83	83	16 a tax liability. If there are credits for more than one year
84	84	17 that are available to offset a liability, the earlier credit
85	85	18 shall be applied first.
86	86	19 (d) For partners, shareholders of Subchapter S
87	87	20 corporations, and owners of limited liability companies, if
88	88	21 the liability company is treated as a partnership for the
89	89	22 purposes of federal and State income taxation, there shall be
90	90	23 allowed a credit under this Section to be determined in
91	91	24 accordance with the determination of income and distributive
92	92	25 share of income under Sections 702 and 704 and Subchapter S of
93	93	26 the Internal Revenue Code.
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104	104	1 (e) As used in this Section:
105	105	2 "Agricultural asset" means agricultural land, livestock,
106	106	3 facilities, buildings and machinery used for farming.
107	107	4 "Beginning farmer" means a person who:
108	108	5 (1) has demonstrated experience in agriculture or a
109	109	6 related field or has transferable skills, as determined by
110	110	7 the Department of Agriculture;
111	111	8 (2) has not received income from agricultural
112	112	9 production for more than the 10 most recent taxable years;
113	113	10 (3) intends to engage in agricultural production
114	114	11 within the State and to provide the majority of the labor
115	115	12 and management involved in the agricultural production;
116	116	13 (4) has obtained certification from the Department of
117	117	14 Agriculture as a beginning farmer;
118	118	15 (5) is not, and whose spouse is not, a partner,
119	119	16 member, shareholder, or trustee of the owner of the
120	120	17 agricultural asset; and
121	121	18 (6) is not a brother, sister, ancestor, or lineal
122	122	19 descendant of the owner of the agricultural asset.
123	123	20 "Farming" means the active use, management, and operation
124	124	21 of real and personal property for agricultural production.
125	125	22 "Owner of an agricultural asset" means an individual,
126	126	23 trust or pass-through entity that is the owner in fee simple of
127	127	24 agricultural land or has legal title to any other agricultural
128	128	25 asset. The term does not include an equipment dealer,
129	129	26 livestock dealer, or comparable entity that is engaged in the
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140	140	1 business of selling agricultural assets for profit and that is
141	141	2 not engaged in farming as its primary business activity.
142	142	3 (f) This Section is exempt from the provisions of Section
143	143	4 250.
144	144	5 Section 99. Effective date. This Act takes effect upon
145	145	6 becoming law.
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