| ||||||||||||||||||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
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 1. Short title. This Act may be cited as the | |||||||||||||||||||||
5 | Illinois Farmers Who Fight Food Insecurity Act. | |||||||||||||||||||||
6 | Section 5. Definitions. As used in this Act: | |||||||||||||||||||||
7 | "Department" means the Department of Human Services. | |||||||||||||||||||||
8 | "Farm property" means real property that is used primarily | |||||||||||||||||||||
9 | for raising or harvesting agricultural or horticultural | |||||||||||||||||||||
10 | commodities for commercial sale. | |||||||||||||||||||||
11 | "Food bank" means a food bank in Illinois that received | |||||||||||||||||||||
12 | funding from The Emergency Food Assistance Program (TEFAP) in | |||||||||||||||||||||
13 | the year in which it received the qualified donation. | |||||||||||||||||||||
14 | "Historically underserved farmer or rancher" means an | |||||||||||||||||||||
15 | individual who: (i) is a beginning farmer or rancher, a | |||||||||||||||||||||
16 | socially disadvantaged farmer or rancher, a veteran farmer or | |||||||||||||||||||||
17 | rancher, or a limited resource farmer or rancher, as those | |||||||||||||||||||||
18 | terms are defined by the Natural Resources Conservation | |||||||||||||||||||||
19 | Service of the United States Department of Agriculture; and | |||||||||||||||||||||
20 | (ii) materially and substantially participates in the | |||||||||||||||||||||
21 | operation of farm property located in the State at least 50% of | |||||||||||||||||||||
22 | which is owned by a beginning farmer or rancher, a socially | |||||||||||||||||||||
23 | disadvantaged farmer or rancher, a veteran farmer or rancher, |
| |||||||
| |||||||
1 | or some combination of those persons at the time the donation | ||||||
2 | is made. | ||||||
3 | "Material and substantial participation" means day-to-day | ||||||
4 | labor and management of farm property, consistent with the | ||||||
5 | practices of the county in which the farm property is located. | ||||||
6 | "Qualified donation" means a donation to a food bank or to | ||||||
7 | a historically underserved farmer or rancher of an | ||||||
8 | agricultural or horticultural commodity that is suitable for | ||||||
9 | human consumption and is produced on farm property owned by | ||||||
10 | the taxpayer, a cash equivalent donation to a food bank or a | ||||||
11 | historically underserved farmer or rancher, or some | ||||||
12 | combination of those types of donations. | ||||||
13 | Section 10. Tax Credit. | ||||||
14 | (a) For taxable years beginning on or after January 1, | ||||||
15 | 2025, each taxpayer who owns farm property in the State and | ||||||
16 | makes a qualified donation during the taxable year is entitled | ||||||
17 | to a credit against the taxes imposed by subsections (a) and | ||||||
18 | (b) of Section 201 in an amount equal to the value of the | ||||||
19 | qualified donation, but not to exceed $2,500 per taxpayer in | ||||||
20 | any taxable year. Eligible taxpayers shall apply to the | ||||||
21 | Department for a tax credit certificate for the credit under | ||||||
22 | this Section, and the Department shall certify the value of | ||||||
23 | the qualified donation. Upon satisfactory review of the | ||||||
24 | application, the Department shall issue to the taxpayer a tax | ||||||
25 | credit certificate stating the amount of the tax credit to |
| |||||||
| |||||||
1 | which the taxpayer is entitled. The tax credit certificate | ||||||
2 | shall be attached to the taxpayer's Illinois income tax | ||||||
3 | return. | ||||||
4 | (b) In no event shall a credit under this Section reduce | ||||||
5 | the taxpayer's liability to less than zero. If the amount of | ||||||
6 | the credit exceeds the tax liability for the year, the excess | ||||||
7 | may be carried forward and applied to the tax liability of the | ||||||
8 | 5 taxable years following the excess credit year. The tax | ||||||
9 | credit shall be applied to the earliest year for which there is | ||||||
10 | a tax liability. If there are credits for more than one year | ||||||
11 | that are available to offset a liability, the earlier credit | ||||||
12 | shall be applied first. | ||||||
13 | (c) For partners of partnerships and shareholders of | ||||||
14 | Subchapter S corporations, there shall be allowed a credit | ||||||
15 | under this Section to be determined in accordance with the | ||||||
16 | determination of income and distributive share of income under | ||||||
17 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
18 | Code. | ||||||
19 | (d) The Department, in addition to those powers granted | ||||||
20 | elsewhere, is granted and has all the powers necessary or | ||||||
21 | convenient to carry out and effectuate the purposes and | ||||||
22 | provisions of this Section, including, but not limited to, the | ||||||
23 | following: | ||||||
24 | (1) adopt rules deemed necessary and appropriate for | ||||||
25 | the administration of the tax credit program established | ||||||
26 | under this Section; |
| |||||||
| |||||||
1 | (2) establish forms for applications, notifications, | ||||||
2 | contracts, or other agreements related to the credit under | ||||||
3 | this Section; | ||||||
4 | (3) accept applications for the credit under this | ||||||
5 | Section at any time during the year; | ||||||
6 | (4) gather information and conduct inquiries for the | ||||||
7 | purpose of administering the tax credit under this | ||||||
8 | Section; | ||||||
9 | (5) provide for sufficient personnel to permit | ||||||
10 | administrative, staffing, operating, and related support | ||||||
11 | required to adequately discharge its duties and | ||||||
12 | responsibilities described in this Section from funds as | ||||||
13 | may be appropriated by the General Assembly for the | ||||||
14 | administration of this Section; and | ||||||
15 | (6) require that the applicant at all times keep | ||||||
16 | proper books and records of accounts relating to the tax | ||||||
17 | credit award, in accordance with generally accepted | ||||||
18 | accounting principles consistently applied, and make, upon | ||||||
19 | reasonable written request by the Department, those books | ||||||
20 | and records available for reasonable Department inspection | ||||||
21 | and audit during the applicant's normal business hours; | ||||||
22 | any documents or data made available to or received from | ||||||
23 | the applicant by any agent, employee, officer, or service | ||||||
24 | provider to the Department shall be deemed confidential | ||||||
25 | and shall not constitute public records to the extent that | ||||||
26 | the documents or data consist of commercial or financial |
| |||||||
| |||||||
1 | information regarding the operation by the applicant of | ||||||
2 | farm property. | ||||||
3 | Section 900. The Illinois Income Tax Act is amended by | ||||||
4 | adding Section 241 as follows: | ||||||
5 | (35 ILCS 5/241 new) | ||||||
6 | Sec. 241. Illinois Farmers Who Fight Food Insecurity Act. | ||||||
7 | Taxpayers who are awarded a credit under the Illinois Farmers | ||||||
8 | Who Fight Food Insecurity Act are entitled to a credit against | ||||||
9 | the taxes imposed by subsections (a) and (b) of Section 201 as | ||||||
10 | provided in that Act. |