Full Text of HB3903 99th General Assembly
HB3903 99TH GENERAL ASSEMBLY |
| | 99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016 HB3903 Introduced , by Rep. Avery Bourne SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Income Tax Act. Creates a credit for each person who hires a beginning farmer to do agricultural contract work for the production of crops or livestock in Illinois during the taxable year pursuant to a custom farming contract. Provides that the amount of the credit shall be 7% of the amount actually paid to the beginning farmer under the contract during the taxable year, except that, if the beginning farmer is a veteran, then, during the first taxable year of the contract, the amount of the credit shall be increased to 8% of the amount actually paid to that beginning farmer. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.
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| | | FISCAL NOTE ACT MAY APPLY | |
| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Income Tax Act is amended by adding | 5 | | Section 224 as follows: | 6 | | (35 ILCS 5/224 new) | 7 | | Sec. 224. Custom farming tax contract credit. | 8 | | (a) For taxable years beginning on or after January 1, | 9 | | 2016, any person who hires a beginning farmer to do | 10 | | agricultural contract work for the production of crops or | 11 | | livestock in Illinois during the taxable year pursuant to a | 12 | | custom farming contract is entitled to a credit as provided in | 13 | | this Section. The amount of the credit shall be 7% of the | 14 | | amount actually paid to the beginning farmer under the contract | 15 | | during the taxable year, except that, if the beginning farmer | 16 | | is a veteran, then, during the first taxable year of the | 17 | | contract, the amount of the credit shall be increased to 8% of | 18 | | the amount actually paid to that beginning farmer. The custom | 19 | | farming contract must (i) provide that the taxpayer pay the | 20 | | beginning farmer on a cash basis, (ii) be in writing for a term | 21 | | of not more than 12 months, (iii) provide for payment of at | 22 | | least $1,000, and (iv) be approved by the Illinois Finance | 23 | | Authority. The taxpayer must make all management decisions |
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| 1 | | substantially contributing to or affecting the production of | 2 | | crops or livestock located on the agricultural land. However, | 3 | | the beginning farmer is not prohibited from regularly or | 4 | | frequently taking part in making day-to-day operational | 5 | | decisions affecting production. | 6 | | (b) For partners, shareholders of subchapter S | 7 | | corporations, and owners of limited liability companies, if the | 8 | | liability company is treated as a partnership for purposes of | 9 | | federal and State income taxation, there shall be allowed a | 10 | | credit under this subsection to be determined in accordance | 11 | | with the determination of income and distributive share of | 12 | | income under Sections 702 and 704 and subchapter S of the | 13 | | Internal Revenue Code. | 14 | | (c) In no event shall a credit under this Section reduce | 15 | | the taxpayer's liability to less than zero. If the amount of | 16 | | the credit exceeds the tax liability for the year, the excess | 17 | | may be carried forward and applied to the tax liability of the | 18 | | 5 taxable years following the excess credit year. The tax | 19 | | credit shall be applied to the earliest year for which there is | 20 | | a tax liability. If there are credits for more than one year | 21 | | that are available to offset a liability, the earlier credit | 22 | | shall be applied first. | 23 | | (d) As used in this Section: | 24 | | "Beginning farmer" means a person who meets the following | 25 | | qualifications: | 26 | | (1) the person is a resident of Illinois; |
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| 1 | | (2) the person is at least 18 years of age; | 2 | | (3) the person is not related to the taxpayer as a | 3 | | spouse, child, stepchild, brother, or sister; | 4 | | (4) the person has a net worth of less than $703,844 at | 5 | | the time of the contract; | 6 | | (5) the person must submit a letter with the agreement | 7 | | at the time of approval by the Illinois Finance Authority | 8 | | documenting their education, training, and experience in | 9 | | farming; | 10 | | (6) the person must have adequate working capital, farm | 11 | | equipment, machinery, and livestock, as determined by the | 12 | | Illinois Finance Authority; and | 13 | | (7) the person must perform the duties required of the | 14 | | beginning farmer according to the terms of the contract. | 15 | | (e) This Section is exempt from the provisions of Section | 16 | | 250.
| 17 | | Section 99. Effective date. This Act takes effect upon | 18 | | becoming law.
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