HB3332 98TH GENERAL ASSEMBLY

LRB098 09797 HLH 39948 b

98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014
HB3332

Introduced , by Rep. Charles E Meier

SYNOPSIS AS INTRODUCED:

35 ILCS 5/224 new

Amends the Illinois Income Tax Act. Provides that each taxpayer who qualifies as a young farmer is allowed a credit of $1,000 for the taxable year in which the taxpayer first purchases real property that will be used for agricultural production. Provides that the term "young farmer" means an individual who is 35 years of age or younger and who derives a minimum of 50% of his or her income from farming. Effective immediately.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning revenue.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Income Tax Act is amended by adding Section 224 as follows:

(35 ILCS 5/224 new)

Sec. 224. Young farmer tax credit.

(a) For taxable years beginning on or after January 1, 2014, each taxpayer who qualifies as a young farmer under this Section is allowed a credit of $1,000 against the tax imposed by subsections (a) and (b) of Section 201 for the taxable year in which the taxpayer first purchases real property that will be used for agricultural production. To qualify for the credit under this Section, the taxpayer must make a minimum purchase of 50 acres. The credit under this Section may be claimed for only one taxable year.

(b) For the purposes of this Section, "young farmer" means an individual who is 35 years of age or younger and who derives a minimum of 50% of his or her income from farming.

(c) The tax credit may not reduce the taxpayer's liability to less than zero. If the amount of the tax credit exceeds the tax liability for the year, the excess may be refunded to the taxpayer.

(d) This Section is exempt from the provisions of Section 250.

Section 99. Effective date. This Act takes effect upon becoming law.