IL HB5506

Amends the Illinois Income Tax Act to create tax credits for owners who sell or rent agricultural assets (land, livestock, facilities, machinery) to beginning farmers, effective for taxable years beginning January 1, 2027

Sale credit equals 8% of the lesser of selling price or fair market value, capped at $50,000 maximum

Rental credits equal 10% of gross rental income (up to $7,000/year) for cash rent or 15% of cash equivalent (up to $10,000/year) for share rent agreements, available for the first three years of the rental agreement

Beginning farmers who participate in Department of Agriculture-approved financial management programs may claim 100% of program costs as a credit, up to $1,500 per year for up to 3 years

Beginning farmer eligibility requires Illinois residency, entry into farming within the past 10 years, total net worth under $1,700,000, and cannot be a family member of the asset owner