HB3066 104TH GENERAL ASSEMBLY

LRB104 05880 HLH 15911 b

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB3066

Introduced 2/6/2025, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

New Act
35 ILCS 5/235 new

Creates the Distressed Farmers Act. Provides that the Department of Agriculture shall, by rule, establish a grant program through which it provides (i) up to $5,000,000 for apprenticeships for individuals working in a direct or support capacity for a distressed farmer, (ii) up to $5,000,000 for distressed farmers for wells, and (iii) up to $10,000,000 for distressed farmers for certain other expenses. Amends the Illinois Income Tax Act. Provides for a distressed farmer credit for taxable years on or after January 1, 2027 in an amount of up to $50,000 in qualified farming expenses. Defines terms.

A BILL FOR

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 (i) a farmer or an individual principally responsible for farming leased land with fewer than 75 acres of land and less than $500,000 per year in gross revenue or (ii) a farmer who has been denied a Farm Service Agency number despite 5 or more years of farming.

Section 10. General provisions. Subject to appropriation, the Department shall, by rule, establish a grant program through which it provides:

(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 financial assistance with the following expenses:

(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 15. Rulemaking. The Department shall adopt rules to implement and administer this Act.

Section 90. The Illinois Income Tax Act is amended by adding Section 235 as follows:

(35 ILCS 5/235 new)

Sec. 235. Distressed farmer credit.

(a) For taxable years beginning on or after January 1, 2027, 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 applied first.

(c) As used in this Section:

"Distressed farmer" has the meaning given to that term in Section 5 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

(B) the median family income is at or below 80% of the area median family income, as reported in the most recent American Community Survey (ACS) published by the United States Bureau of the Census; and

(2) in the case of a census tract located in a Metropolitan Statistical Area, at least 33% of the census tract's population lives more than one mile from a grocery store or, in the case of a census tract located outside of a Metropolitan Statistical Area, at least 33% of the census tract's population lives more than 10 miles from a grocery store.