INC TX-BEGINNING FARMER

Illinois General Assembly - Full Text of HB5506

Select Language

×

The Illinois General Assembly offers the Google Translate™ service for visitor convenience. In no way should it be considered accurate as to the translation of any content herein.

Visitors of the Illinois General Assembly website are encouraged to use other translation services available on the internet.

The English language version is always the official and authoritative version of this website.

NOTE: To return to the original English language version, select the "Show Original" button on the Google Translate™ menu bar at the top of the window.

Choose Language

English

Afrikaans

Albanian

Arabic

Armenian

Azerbaijani

Basque

Bengali

Bosnian

Catalan

Croatian

Czech

Danish

Dutch

Esperanto

Estonian

Filipino

Finnish

French

Galician

Georgian

German

Greek

Gujarati

Haitian Creole

Hausa

Hawaiian

Hebrew

Hindi

Hungarian

Icelandic

Indonesian

Interlingua

Interlingue

Inuktitut

Irish

Italian

Japanese

Javanese

Kannada

Khmer

Korean

Latin

Latvian

Lithuanian

Luxembourgish

Macedonian

Malagasy

Malayalam

Maltese

Maori

Marathi

Myanmar

Nepali

Norwegian

Odia

Pashto

Punjabi

Romanian

Russian

Samoan

Sango

Sanskrit

Sardinian

Sindhi

Sinhala

Slovak

Slovenian

Somali

Southern Sotho

Spanish

Sundanese

Swahili

Swedish

Tamil

Telugu

Thai

Tigrinya

Tonga

Turkish

Ukrainian

Urdu

Vietnamese

Welsh

Xhosa

Yiddish

Yoruba

Zulu

Powered by
Translate

Close

Illinois General Assembly

Top Navigation Bar

Translate

Learn

Select General Assembly

Search the 104th General Assembly

Enter search terms for legislation, members, committees, or schedules.

ILGA.GOV

LEGISLATION & LAWS

Bills & Resolutions

Public Acts

Illinois Compiled Statutes

Illinois Constitution

Search Legislation

Glossary

Guide

Reports & Inquiry

Legislative Reports

Special Reports

FTP Site

Legislator Lookup

Capitol Complex Phone Numbers

Rules & Regulations

Illinois Register

Administrative Rules

Senate

Members

Schedules

Committees

Request for Remote Testimony

Journals

Transcripts

Rules

Audio/Video

FOIA Information

Senate Employment Opportunities

Media Guidelines

House

Members

Schedules

Committees

Submit testimony for House Committees

Journals

Transcripts

Rules

Audio/Video

FOIA Information

House Employment Opportunities

Log In

Mobile Top Bar

Search the 104th General Assembly

Enter keywords to search the Illinois General Assembly website.

Full Text of HB5506

Home

Legislation

Full Text

HB5506 - 104th General Assembly

Bill Status

Full Text

Votes

Witness Slips

Select Menu

Bill Status

Full Text

Votes

Witness Slips

Printer Friendly Version

Introduced

Printer Friendly Version

Introduced

Open PDF

104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB5506

Introduced 2/13/2026, by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

35 ILCS 5/246 new

Amends the Illinois Income Tax Act. Creates an income tax credit for
an owner of an agricultural asset that sells or rents that agricultural
asset to a beginning farmer. Sets forth the amount of the credit. Creates
an income tax credit for a beginning farmer who participates in a financial
management program approved by the Department of Agriculture. Effective
immediately.
LRB104 17478 HLH 30904 b

A BILL FOR

HB5506
LRB104 17478 HLH 30904 b
1

AN ACT concerning revenue.

2

Be it enacted by the People of the State of Illinois,
3
represented in the General Assembly:

4

Section 5.
The Illinois Income Tax Act is amended by
5
adding Sections 246 and 247 as follows:

6

(35 ILCS 5/246 new)
7

Sec. 246.
Beginning farmer tax credits.
8

(a) As used in this Section:

9

"Agricultural asset" means agricultural land, livestock,
10
facilities, buildings, and machinery used for farming in
11
Illinois.

12

"Beginning farmer" means an individual who:

13

(1) is a resident of Illinois;

14

(2) is seeking entry into farming or has entered into
15

farming within the 10 years immediately preceding the
16

taxable year for which the credit under this Section is
17

awarded;

18

(3) intends to farm land located in the State;

19

(4) except as otherwise provided, is not a family
20

member of the owner of the agricultural asset giving rise
21

to the credit under this Section or the spouse of a family
22

member of the owner of the agricultural asset giving rise
23

to the credit under this Section;

HB5506
- 2 -
LRB104 17478 HLH 30904 b
1

(5) except as otherwise provided, is not a family
2

member of a partner, member, shareholder, or trustee of
3

the owner of the agricultural asset giving rise to the
4

credit under this Section or the spouse of a family member
5

of a partner, member, shareholder, or trustee of the owner
6

of the agricultural asset giving rise to the credit under
7

this Section; and

8

(6) meets the following eligibility requirements, as
9

determined by the Department:

10

(A) the person has a total net worth, including
11

assets and liabilities of the borrower's spouse and
12

dependents, of less than $1,700,000;

13

(B) the person provides the majority of the
14

day-to-day physical labor and management of the farm;

15

(C) the person has, in the judgment of the
16

Department, adequate farming experience or
17

demonstrates knowledge in the type of farming for
18

which the person seeks assistance under this Section;

19

(D) the person demonstrates to the Department a
20

profit potential by submitting projected earnings
21

statements;

22

(E) the person asserts to the satisfaction of the
23

Department that farming will be a significant source
24

of income for the person;

25

(F) the person is enrolled in or has completed
26

within 10 years of the person's first year of farming a

HB5506
- 3 -
LRB104 17478 HLH 30904 b
1

financial management program approved by the
2

Department; and

3

(G) the person has other qualifications as
4

specified by the Department.

5

"Department" means the Department of Agriculture.

6

(b) For taxable years beginning on or after January 1,
7
2027, an owner of an agricultural asset may apply to the
8
Department for a credit against the tax imposed under
9
subsections (a) and (b) of Section 201 in connection with the
10
sale or rental of an agricultural asset to a beginning farmer.
11
A qualifying rental agreement includes cash rent of
12
agricultural assets or a share rent agreement. The
13
agricultural asset must be rented at prevailing community
14
rates as determined by the Department. The amount of the
15
credit shall be equal to:

16

(1) 8% of the lesser of the selling price or the fair
17

market value of the agricultural asset, up to a maximum of
18

$50,000;

19

(2) 10% of the gross rental income from the
20

agricultural asset in each of the first, second, and third
21

years of a rental agreement, up to a maximum of $7,000 per
22

year; or

23

(3) 15% of the cash equivalent of the gross rental
24

income in each of the first, second, and third years of a
25

share rent agreement, up to a maximum of $10,000 per year.

26

(c) For taxable years beginning on or after January 1,

HB5506
- 4 -
LRB104 17478 HLH 30904 b
1
2027, a beginning farmer may take a credit against the tax
2
imposed under subsections (a) and (b) of Section 201 for
3
participating in a financial management program approved by
4
the Department. The credit shall be in an amount equal to 100%
5
of the amount paid for participating in the program, not to
6
exceed $1,500 per year. The credit is available for up to 3
7
years while the farmer is in the program. The Department shall
8
maintain a list of approved financial management programs and
9
establish a procedure for approving equivalent programs that
10
are not on the list.

11

(d) The credits under this Section are exempt from the
12
provisions of Section 250.

13

Section 99.
Effective date.
This Act takes effect upon
14
becoming law.

Footer

Disclaimer

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.

Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn

This site is maintained for the Illinois General Assembly by the
Legislative Information System, 705 Stratton Building, Springfield, Illinois 62706.
Contact ILGA Webmaster

ILGA.gov uses cookies to ensure you get the best experience on our website. By continuing to browse ILGA.gov you consent to our use of cookies.
Read About Cookies

ILGA.GOV

2026 ILGA.gov | All Rights Reserved |
ADA

|
Disclaimers
|
Learn