HB3902 Summary

• Creates a tax credit for agricultural asset owners who lease assets to beginning farmers through agreements approved by the Illinois Finance Authority.

• Provides a 7% tax credit on cash basis lease payments, or 8% for the first year if the beginning farmer is a veteran.

• Provides a 17% tax credit on commodity share lease payments (based on crop/animal sales), or 18% for the first year if the beginning farmer is a veteran.

• Defines "beginning farmer" as an Illinois resident with net worth under $703,844 who has farming education/experience, adequate capital and equipment, and assumes financial risk of operating the leased asset.

• Allows excess credits to be carried forward for up to 5 taxable years and applies to agricultural land, machinery, equipment, breeding livestock, and buildings in Illinois.