103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
SB3427

 

Introduced 2/8/2024, by Sen. Doris Turner

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/232

    Amends the Illinois Income Tax Act. Provides that the credit for agritourism liability insurance applies for tax years ending on or before December 31, 2028 (currently, December 31, 2023). Effective immediately.


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A BILL FOR

 

SB3427LRB103 36612 HLH 66721 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 232 as follows:
 
6    (35 ILCS 5/232)
7    Sec. 232. Tax credit for agritourism liability insurance.
8    (a) For taxable years beginning on or after January 1,
92022 and ending on or before December 31, 2028 December 31,
102023, any individual or entity that operates an agritourism
11operation in the State during the taxable year shall be
12entitled to a tax credit against the tax imposed by
13subsections (a) and (b) of Section 201 equal to the lesser of
14100% of the liability insurance premiums paid by that
15individual or entity during the taxable year or $1,000. To
16claim the credit, the taxpayer must apply to the Department of
17Agriculture for a certificate of credit in the form and manner
18required by the Department of Agriculture by rule. If granted,
19the taxpayer shall attach a copy of the certificate of credit
20to his or her Illinois income tax return for the taxable year.
21The total amount of credits that may be awarded by the
22Department of Agriculture may not exceed $1,000,000 in any
23calendar year.

 

 

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1    (b) For the purposes of this Section:
2    "Agricultural property" means property that is used in
3whole or in part for production agriculture, as defined in
4Section 3-35 of the Use Tax Act, or used in connection with one
5or more of the following:
6        (1) the growing and harvesting of crops;
7        (2) the feeding, breeding, and management of
8    livestock;
9        (3) dairying or any other agricultural or
10    horticultural use or combination of those uses, including,
11    but not limited to, the harvesting of hay, grain, fruit,
12    or truck or vegetable crops, or floriculture, mushroom
13    growing, plant or tree nurseries, orchards, forestry, sod
14    farming, or greenhouses; or
15        (4) the keeping, raising, and feeding of livestock or
16    poultry, including dairying, poultry, swine, sheep, beef
17    cattle, ponies or horses, fur farming, bees, fish and
18    wildlife farming.
19    "Agritourism activities" includes, but is not limited to,
20the following:
21        (1) historic, cultural, and on-site educational
22    programs;
23        (2) guided and self-guided tours, including school
24    tours;
25        (3) animal exhibitions or petting zoos;
26        (4) agricultural crop mazes, such as corn or flower

 

 

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1    mazes;
2        (5) harvest-your-own or U-pick operations;
3        (6) horseback or pony rides; and
4        (7) hayrides or sleigh rides.
5    "Agritourism activities" does not include the following
6activities:
7        (1) hunting;
8        (2) fishing;
9        (3) amusement rides;
10        (4) rodeos;
11        (5) off-road biking or motorized off-highway or
12    all-terrain vehicle activities;
13        (6) boating, swimming, canoeing, hiking, camping,
14    skiing, bounce houses, or similar activities; or
15        (7) entertainment venues such as weddings or concerts.
16    "Agritourism operation" means an individual or entity that
17carries out agricultural activities on agricultural property
18and allows members of the general public, for recreational,
19entertainment, or educational purposes, to view or enjoy those
20activities.
21    (c) If the taxpayer is a partnership or Subchapter S
22corporation, the credit shall be allowed to the partners or
23shareholders in accordance with the determination of income
24and distributive share of income under Sections 702 and 704
25and Subchapter S of the Internal Revenue Code.
26    (d) In no event shall a credit under this Section reduce

 

 

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1the taxpayer's liability to less than zero. If the amount of
2the credit exceeds the tax liability for the year, the excess
3may be carried forward and applied to the tax liability of the
45 taxable years following the excess credit year. The tax
5credit shall be applied to the earliest year for which there is
6a tax liability. If there are credits for more than one year
7that are available to offset a liability, the earlier credit
8shall be applied first.
9(Source: P.A. 102-700, eff. 4-19-22; 103-154, eff. 6-30-23.)
 
10    Section 99. Effective date. This Act takes effect upon
11becoming law.