HB3066 creates the Distressed Farmers Act and adds a new income tax credit for certain farmers beginning with taxable years on or after January 1, 2027. The bill defines a “distressed farmer” as either a farmer or principal operator of leased land with fewer than 75 acres and less than $500,000 in annual gross revenue, or a farmer who has been denied a Farm Service Agency number despite at least five years of farming. Eligible taxpayers could claim a credit equal to 100% of qualified farming expenses, capped at $50,000 per year, with unused credit carried forward for up to five years.
In addition to the tax credit, the bill directs the Illinois Department of Agriculture to create, by rule and subject to appropriation, a grant program for distressed farmers. The program would allocate up to $5 million for year-long paid apprenticeships, up to $5 million for wells, and up to $10 million for other specified expenses such as repairing tractors, greenhouses, and trucks; building greenhouses and covers; and purchasing tractors with tillers and attachments. The bill also references food production for underserved communities as a qualifying expense, tying the program to local food access goals.
Impact
HB3066 would amend the Illinois Income Tax Act by adding a new Section 235 and would create a new standalone Distressed Farmers Act. If enacted, it would establish a state-administered grant program and a refundable-style tax benefit structure for qualifying distressed farmers, shifting state policy toward direct financial support for small-scale and financially constrained agricultural operations. The bill would affect the Department of Agriculture, eligible farmers, and potentially apprenticeship participants, while also creating new definitions and compliance rules for qualified farming expenses and underserved-community food production.
Sentiment
No committee transcripts or recorded votes were provided, so there is no documented debate or formal vote history to gauge legislative sentiment. Based on the bill text alone, the measure appears supportive of small and distressed farmers and framed as economic relief and agricultural assistance. The overall tone is policy-driven and assistance-oriented rather than punitive or regulatory.
Contention
Because there are no available committee discussions or votes, no specific points of contention are documented in the provided materials. Potential areas of debate implied by the bill include the scope of the “distressed farmer” definition, the size and subject matter of the grant allocations, the cost to the state through appropriations and tax expenditures, and whether the bill’s benefits are targeted narrowly enough to reach the intended farmers. The inclusion of food production for underserved communities may also raise questions about program administration and eligibility.