INCOME TAX CREDIT-FARMERS
If enacted, HB5080 will impact state tax laws by adding a new provision under the Illinois Income Tax Act. Taxpayers who make qualified donations starting in the tax year 2025 will be able to claim a credit against their state tax liability. This credit, capped at $2,500 per taxpayer, aims to enhance support for food banks and promote agricultural donations, positively impacting food accessibility for low-income communities.
House Bill 5080, known as the Illinois Farmers Who Fight Food Insecurity Act, proposes to establish an income tax credit for taxpayers who own farm property in Illinois. This credit is aimed at incentivizing donations of agricultural or horticultural commodities or cash to food banks or historically underserved farmers and ranchers. The bill acknowledges the role of farmers in combating food insecurity within the state by providing a financial incentive for their contributions to local food banks and support for peers in need.
Despite its intended benefits, HB5080 may face scrutiny regarding its implementation and the potential burden on the state's budget due to the tax credits. Discussions surrounding the bill might also highlight concerns from stakeholders about whether it adequately addresses the needs of food banks and underserved farmers. Stakeholders might debate the effectiveness of tax credits in fostering genuine support versus simply providing a financial benefit to higher-income property owners. Additionally, clarity on how 'qualified donations' are defined and regulated will likely be points of contention in legislative discussions.