WeVote
Log In

Bill

Bill

HB 4923

DISTRESSED FARMERS ACT

104th Regular Session Introduced by Sonya Harper and 1 co-sponsor

Provides a tax credit equal to 100% of qualified farming expenses up to $50,000 per taxpayer per year for distressed farmers, starting in 2026.

Added Co-Sponsor Rep. Kevin John Olickal
0
WeVote Research Nonpartisan
Bill Summary · HB 4923

Overview

HB4923, introduced in the Illinois 104th General Assembly by Rep. Sonya M. Harper (with a co-sponsor), creates the Distressed Farmers Act and adds a new tax credit program for distressed farmers. It also authorizes the Department of Agriculture to fund and administer related programs, subject to appropriation.

Purpose and intent

  • Provide targeted support to distressed farmers through (a) Department of Agriculture funding for related programs and (b) a refundable or nonrefundable (subject to tax liability) income tax credit for qualified farming expenses.
  • Focus assistance on operational improvements and infrastructure that support farming viability, especially in underserved communities.

Key provisions

Distressed Farmers Act - Department of Agriculture programs

  • The Department of Agriculture shall fund and administer programs addressing the needs of distressed farmers.
  • Funds and program areas (subject to appropriation) include:
    • Up to $5,000,000 for paid, year-long apprenticeships for individuals seeking to work with distressed farmers (direct or support capacity).
    • Up to $5,000,000 for distressed farmers specifically in need of wells.
    • Up to $10,000,000 for distressed farmers in need of expenses such as:
    • Repairing tractors, greenhouses, reefer trucks, and other trucks
    • Building or upgrading greenhouses and other covers
    • Purchasing tractors with tillers and attachments

Distressed farmer tax credit (Illinois Income Tax Act)

  • Creates Section 253 (new) of the Illinois Income Tax Act.
  • For taxable years beginning on or after January 1, 2026, eligible distressed farmers may claim a tax credit equal to 100% of their qualified farming expenses, capped at $50,000 per taxpayer per year.
  • Credit applicability and carryover:
    • Credit cannot reduce tax liability below zero.
    • Any excess credit may be carried forward for up to 5 future taxable years, applied to the earliest year with tax liability.
    • If multiple years have available credits, earlier credits are applied first.
  • Definitions (as used in the credit):
    • Distressed farmer: See Section 10 of the Distressed Farmers Act (low-acreage operators or those denied a Farm Service Agency number after 5 years).
    • Qualified farming expenses: 1) repairing tractors, trailers, and vehicles; 2) purchasing, repairing, or constructing greenhouses and covers; 3) purchasing tractors with tillers and attachments; 4) planting or harvesting food for underserved communities.
    • Underserved community: Based on poverty or income criteria in a census tract, plus access to grocery stores (special rules for tracts in MSAs regarding distance to a grocery store).
    • Grocery store: Defined as a DHS-authorized WIC-participating retailer primarily engaged in retailing food.

Who is affected

  • Distressed farmers (as defined in the bill) can access:
    • Department-funded programs and apprenticeships
    • A tax credit for qualified farming expenses starting in 2026
  • Taxpayers who are distressed farmers and incur qualifying farming expenses (e.g., equipment repairs, greenhouse construction, and delivery of food to underserved communities) may benefit from a 100% credit up to $50,000 per year.
  • Underserved communities may benefit indirectly through increased agricultural activity and access to locally produced food.

Administrative and timeline aspects

  • Department of Agriculture program funding and administration are contingent on appropriation (i.e., subject to future budget appropriations).
  • The tax credit becomes effective for taxable years beginning on or after January 1, 2026.
  • Credit carryover rules allow up to 5 carryforward years if the credit exceeds current-year liability.
  • The Act defines key terms to determine eligibility and geographic reach (e.g., underserved communities and eligibility thresholds for distressed farmers).

Potential implications

  • Financial support for distressed farmers through both direct programs and tax incentives could improve sustainability for small or marginal operations.
  • The cap of $50,000 per taxpayer per year provides a ceiling that may influence how farmers structure qualified expenses.
  • Community access to fresh produce in underserved areas could improve as farming activities expand and logistics improve.
  • Administrative reliance on future appropriations means program funding levels could vary with state budget decisions.

If you’d like, I can provide a one-page quick-reference sheet with eligibility checklists and a comparison to existing programs.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.