HB3903 Summary

• Creates a tax credit for persons who hire beginning farmers under custom farming contracts for crop or livestock production in Illinois, effective for taxable years beginning January 1, 2016.

• Credit equals 7% of cash payments made to the beginning farmer under the contract, or 8% if the beginning farmer is a veteran during the first contract year.

• Custom farming contract must be in writing for no more than 12 months, require payments of at least $1,000, and be approved by the Illinois Finance Authority.

• Beginning farmer must be an Illinois resident, at least 18 years old, unrelated to the hiring person, have net worth below $703,844, and demonstrate farming education and adequate equipment.

• Excess credits can be carried forward up to 5 subsequent taxable years, and the credit is exempt from automatic sunset provisions.