State of Illinois
2023 and 2024


Introduced 1/31/2023, by Rep. Lance Yednock


35 ILCS 5/234 new

    Amends the Illinois Income Tax Act. Creates an income tax credit for taxpayers who make a qualified donation of a crop to a food bank or other charitable organization in Illinois. Provides that the amount of the credit shall be 15% of the value of the quantity of the crop donated. Provides that the credit is exempt from the Act's automatic sunset provision. Effective immediately.

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HB1344LRB103 05777 HLH 50797 b

1    AN ACT concerning revenue.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 5. The Illinois Income Tax Act is amended by
5adding Section 234 as follows:
6    (35 ILCS 5/234 new)
7    Sec. 234. Crop donation credit.
8    (a) For taxable years beginning on or after January 1,
92024, each taxpayer that makes a qualified donation of a crop
10is allowed a credit against the tax imposed by subsections (a)
11and (b) of Section 201 to the extent that such amounts have not
12been deducted for the purposes of calculating the taxpayer's
13federal adjusted gross income. In the case of a qualified
14donation made under the circumstances described in either item
15(1) or (2) of the definition of "qualified donation" set forth
16in subsection (d) of this Section, the amount of the credit
17shall be 15% of the value of the quantity of the crop donated,
18computed at the wholesale market price. In the case of a
19qualified donation made under the circumstances described in
20item (3) of the definition of "qualified donation" set forth
21in subsection (d) of this Section, the amount of the credit
22shall be 15% of the value of the quantity of the crop donated,
23computed at the wholesale market price that the grower would



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1have received had the quantity of crop donated been sold or
3    (b) For partners, shareholders of Subchapter S
4corporations, and owners of limited liability companies, if
5the liability company is treated as a partnership for purposes
6of federal and State income taxation, the credit under this
7Section shall be determined in accordance with the
8determination of income and distributive share of income under
9Sections 702 and 704 and Subchapter S of the Internal Revenue
11    (c) In no event shall a credit under this Section reduce
12the taxpayer's liability to less than zero. If the amount of
13the credit exceeds the tax liability for the year, the excess
14may be carried forward and applied to the tax liability of the
155 taxable years following the excess credit year. The tax
16credit shall be applied to the earliest year for which there is
17a tax liability. If there are credits for more than one year
18that are available to offset a liability, the earlier credit
19shall be applied first.
20    (d) As used in this Section:
21    "Apparently wholesome food" means:
22        (1) food fit for human consumption; and
23        (2) food that meets all quality and labeling standards
24    imposed by federal, State, or local laws, even though the
25    food may not be readily marketable due to appearance, age,
26    freshness, grade, size, surplus, or other condition.



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1    "Crop" means an agricultural crop producing food for human
2consumption and includes, but is not limited to, bedding
3plants that produce food, orchard stock intended for the
4production of food, and livestock that may be processed into
5food for human consumption.
6    "Food bank or other charitable organization" means any
7organization located in this State, including, but not limited
8to, a gleaning cooperative, that is exempt from federal income
9taxes under section 501(c)(3) of the Internal Revenue Code and
10that has as a principal or ongoing purpose the distribution of
11food to children or homeless, unemployed, elderly, or
12low-income individuals.
13    "Qualified donation" means the harvest or post-harvest
14contribution in Illinois of a crop or a portion of a crop grown
15primarily to be sold for cash and donated by the grower of the
16crop to a food bank or other charitable organization engaged
17in the distribution of food without charge while the crop is
18still usable as food for human consumption and:
19        (1) the grower of the crop has supplied any crop
20    contract quota with the wholesale or retail buyer;
21        (2) if the grower of the crop is a party to a
22    contingent supply contract, the wholesale or retail buyer
23    reduces the crop quota that was reasonably anticipated to
24    be supplied by the grower; or
25        (3) the grower of the crop otherwise determines to
26    make a donation of apparently wholesome food.



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1    "Wholesale market price" means the market price determined
2either by:
3        (1) the amount paid to the grower by the last previous
4    cash buyer of the particular crop; or
5        (2) in the event there is no previous cash buyer, a
6    market price based upon the market price of the nearest
7    regional wholesale buyer or the regional U-Pick market
8    price.
9    (e) This Section is exempt from the provisions of Section
11    Section 99. Effective date. This Act takes effect upon
12becoming law.