103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4857

 

Introduced 2/7/2024, by Rep. Sonya M. Harper

 

SYNOPSIS AS INTRODUCED:
 
New Act
35 ILCS 5/241 new

    Creates the Distressed Farmers Act. Provides that the Department of Agriculture shall fund and administer programs to address the needs of distressed farmers. Provides for a tax credit for distressed farmers. Amends The Illinois Income Tax Act. Provides that for taxable years beginning on or after January 1, 2025, each taxpayer who is a distressed farmer and who incurs qualified farming expenses during the taxable year is entitled to a tax credit in an amount equal to 100% of those qualified farming expenses, not to exceed $50,000 per taxpayer in any taxable year. Provides that qualified farming expenses include: (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.


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A BILL FOR

 

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1    AN ACT concerning agriculture.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 1. Short title. This Act may be cited as the
5Distressed Farmers Act.
 
6    Section 5. Definitions. As defined in this Act:
7    "Department" refers to the Department of Agriculture.
8    "Distressed farmer" means a farmer or an individual
9principally responsible for farming leased land with fewer
10than 75 acres of land and $500,000 per year in gross revenue or
11a farmer who has been denied a Farm Service Agency number
12despite 5 or more years of farming.
 
13    Section 10. General provisions. Subject to the
14appropriation, the Department shall administer and provide
15funding for the following:
16    (1) up to $5,000,000 for paid, year-long apprenticeships
17for individuals seeking to work in a direct or support
18capacity of a distressed farmer;
19    (2) up to $5,000,000 for distressed farmers specifically
20in need of wells; and
21    (3) up to $10,000,000 for distressed farmers in need of,
22but not limited to, the following expenses:

 

 

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1        (A) repairing tractors, greenhouses, and reefer trucks
2    and other trucks;
3        (B) building greenhouses and other covers; and
4        (C) purchasing tractors with tillers and other
5    attachments.
 
6    Section 90. The Illinois Income Tax Act is amended by
7adding Section 241 as follows:
 
8    (35 ILCS 5/241 new)
9    Sec. 241. Distressed farmer credit.
10    (a) For taxable years beginning on or after January 1,
112025, each taxpayer who is a distressed farmer and who incurs
12qualified farming expenses during the taxable year is entitled
13to a credit against the tax imposed by subsections (a) and (b)
14of Section 201 in an amount equal to 100% of those qualified
15farming expenses, not to exceed $50,000 per taxpayer in any
16taxable year.
17    (b) In no event shall a credit under this Section reduce a
18taxpayer's liability to less than zero. If the amount of
19credit exceeds the tax liability for the year, the excess may
20be carried forward and applied to the tax liability for the 5
21taxable years following the excess credit year. The tax credit
22shall be applied to the earliest year for which there is a tax
23liability. If there are credits for more than one year that are
24available to offset liability, the earlier credit shall be

 

 

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1applied first.
2    (c) As used in this Section:
3    "Distressed farmer" has the meaning given to that term in
4Section 10 of the Distressed Farmers Act.
5    "Grocery store" means a business that is authorized by the
6Department of Human Services to participate in the Women,
7Infants and Children Nutrition program and is primarily
8engaged in retailing a general line of food, such as canned and
9frozen foods; fresh fruits and vegetables; and fresh and
10prepared meats, fish, and poultry.
11    "Qualified farming expense" means an expense related to:
12        (1) repairing tractors, trailers, and other vehicles;
13        (2) purchasing, repairing, or constructing greenhouses
14    and other covers for agricultural products;
15        (3) purchasing tractors with tillers and other
16    attachments; and
17        (4) planting or harvesting food that will be delivered
18    to an underserved community.
19    "Underserved community" means a census tract in the State
20in which:
21        (1) at least one of the following conditions applies:
22            (A) 20% or more of the households are at or below
23        the federal poverty level, according to the poverty
24        guidelines updated periodically in the Federal
25        Register by the U.S. Department of Health and Human
26        Services; or

 

 

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1            (B) the median family income is at or below 80% of
2        the area median family income, as reported in the most
3        recent American Community Survey (ACS) published by
4        the United States Bureau of the Census; and
5        (2) in the case of a census tract located in a
6    Metropolitan Statistical Area, at least 33% of the census
7    tract's population lives more than one mile from a grocery
8    store or, in the case of a census tract located outside of
9    a Metropolitan Statistical Area, at least 33% of the
10    census tract's population lives more than 10 miles from a
11    grocery store.