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SB 4007

INC TX-BEEKEEPERS

104th Regular Session Introduced by Julie Morrison

Beekeepers on 5–20 acre Illinois properties with 4–12 hives can claim a tax credit equal to the lesser of their liability insurance premiums or $1,000, capped at $1,000,000 per yea

Rule 2-10 Committee/3rd Reading Deadline Established As May 15, 2026
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Bill Summary · SB 4007

Summary of SB 4007 (Illinois, 104th General Assembly)

Purpose and intent

SB 4007 seeks to create a new Illinois tax credit to support beekeeping activities. The bill amends the Illinois Income Tax Act to provide an income tax credit for individuals or entities that engage in beekeeping on a qualified beekeeping property during the taxable year. The credit is designed to offset liability insurance costs related to beekeeping operations, with a maximum credit cap.

Key provisions

  • Tax credit fundament: For beekeepers, the credit equals the lesser of:

    • 100% of liability insurance premiums paid during the taxable year in connection with the qualified beekeeping property, or
    • $1,000.

  • Credit mechanism and claiming process:

    • Beekeepers must obtain a certificate of credit from the Illinois Department of Agriculture (IDA) using the form and process prescribed by the Department.
    • A copy of the certificate must be attached to the taxpayer’s Illinois income tax return for the relevant year.

  • Cap on credits:

    • The total amount of credits that the Department of Agriculture may award in any calendar year is capped at $1,000,000.

  • Effective scope and dates:

    • The credit applies to taxable years beginning on or after January 1, 2027.
    • The bill also retains a separate prior framework for agritourism liability insurance credits for certain activities in earlier years, but SB 4007 focuses on beekeeping credits from 2027 onward.

  • Definitions (selected):

    • Qualified beekeeping property: Property in Illinois that spans 5 to 20 acres and maintains 4 or more but not more than 12 active beehives. Agricultural property and related activities are defined with reference to broader agricultural uses and agritourism activities (e.g., tours, petting zoos, U-pick operations, hayrides) but the beekeeping credit is specifically tied to liability insurance for beekeeping on qualified property.

  • Allocations and partnerships:

    • If the taxpayer is a partnership or Subchapter S corporation, the credit is allocated to partners/shareholders in accordance with income determinations under related tax code sections.

  • Non-deductibility and carryforward:

    • The credit cannot reduce tax liability below zero.
    • Any excess credit may be carried forward to apply to tax liabilities in the next 5 years, with the earliest credits applied first if multiple credits are available.

Who would be affected

  • Beekeepers operating on qualifying beekeeping properties (5–20 acres with 4–12 active hives) would be eligible to pursue the credit.
  • Entities that insure beekeeping operations (through liability insurance) would be indirectly affected as the credit targets insurance costs.
  • Entities forming partnerships or S corporations with beekeeping activities would allocate the credit to eligible partners or shareholders.

Procedural and timeline notes

  • Introduced February 6, 2026, and assigned to Revenue with committee deadlines in 2026, indicating anticipated legislative review ahead of potential enactment.
  • The 2027 effective date means beneficiaries would plan for the credit starting with the 2027 tax year, subject to the IDA’s issuance of certificates of credit and annual cap administration.

Overall, SB 4007 adds a targeted incentive to support beekeeping by mitigating liability insurance costs for qualified beekeeping operations, with a statewide annual cap on credits.

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

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