Full Text of HB5080 103rd General Assembly
HB5080 103RD GENERAL ASSEMBLY | | | 103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024 HB5080 Introduced 2/8/2024, by Rep. Lance Yednock SYNOPSIS AS INTRODUCED: | | | Creates the Illinois Farmers Who Fight Food Insecurity Act. Establishes an income tax credit for taxpayers who own farm property in the State and make a qualified donation of an agricultural or horticultural commodity, or a cash donation, to a food bank or a historically underserved farmer or rancher. |
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| | 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 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, |
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| 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 |
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| 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; |
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| 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 |
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| 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. |
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