HB3066ham001 104TH GENERAL ASSEMBLY

Rep. Sonya M. Harper

Filed: 3/13/2025

10400HB3066ham001 LRB104 05880 HLH 23501 a

AMENDMENT TO HOUSE BILL 3066

AMENDMENT NO. ______. Amend House Bill 3066 by replacing everything after the enacting clause with the following:

"Section 5. 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" means (i) a person who leases and is principally responsible for farming up to 75 acres of agricultural land that is located in the State and that generates less than $500,000 per year in gross revenue or (ii) a person who has been denied a Farm Service Agency number despite 5 or more years of farming.

"Grocery store" means a business that is authorized by the Department of Human Services to participate in the special supplemental nutrition program for Women, Infants, and Children 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 under the authority of 42 U.S.C. 9902(2); 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.".