IL HB3474

Creates a new Illinois income tax credit equal to 100% of costs incurred by individual taxpayers for planting cover crops at locations in Illinois

Effective for taxable years beginning on or after January 1, 2026

Excess credits that exceed tax liability may be carried forward for up to 5 taxable years, applied to the earliest year first

Credit cannot reduce tax liability below zero (non-refundable)

Defines "cover crop" as plants grown to cover soil rather than for harvest, including grasses, legumes, and wheat