IL HB1501

Creates an income tax credit for owners of agricultural assets (land, livestock, facilities, buildings, machinery) who sell or lease those assets to certified beginning farmers in Illinois, effective January 1, 2025

Credit amounts: 5% of sale price or fair market value for sales; 5% of cash rent payments for cash rent leases; 15% of gross commodity share for commodity share leases; 5% of fixed payments for flexible leases

Maximum credit of $50,000 per single sale or lease agreement per taxable year, with statewide program caps of $5 million annually (2025-2029) increasing to $10 million annually (2030 onward)

Beginning farmers must have agricultural experience, no more than 10 years of farm income history, obtain Department of Agriculture certification, and cannot be family members (siblings, ancestors, or lineal descendants) of the asset owner

Lease agreements must be 2-5 years in length; unused credits may be carried forward for 5 years; applications must be submitted to the Department of Agriculture by August 1 of the taxable year