Bill Text: IL HB3474 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the cost incurred by the taxpayer in planting cover crops.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2025-02-07 - Filed with the Clerk by Rep. Amy Briel [HB3474 Detail]

Download: Illinois-2025-HB3474-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3474 Introduced , by Rep. Amy Briel SYNOPSIS AS INTRODUCED:
35 ILCS 5/246 new
Amends the Illinois Income Tax Act. Creates an income tax credit in an amount equal to the cost incurred by the taxpayer in planting cover crops.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Income Tax Act is amended by
adding Section 246 as follows:
(35 ILCS 5/246 new)
Sec. 246. Cover crops.
(a) For taxable years beginning on or after January 1,
2026, each individual taxpayer who plants cover crops at a
location in the State is entitled to a credit against the taxes
imposed by subsections (a) and (b) of Section 201 in an amount
equal to the cost incurred by the taxpayer in planting those
cover crops.
(b) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(c) As used in this Section, "cover crop" means a plant

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that is planted to cover the soil rather than for the purpose
of being harvested, including, but not limited to, grasses,
legumes, and wheat.