For taxable years beginning on or after January 1, 2022, and ending on or before December 31, 2023, any individual or entity that operates an agritourism operation in the State during the taxable year shall be entitled to a tax credit against the tax imposed by subsections (a) and (b) of Section 201 equal to the lesser of 100% of the liability insurance premiums paid by that individual or entity during the taxable year or $1,000.
How Do Taxpayers Qualify for the Credit?
Agritourism operation an individual or entity that carries out agricultural activities on agricultural property and allows members of the general public, for recreational, entertainment, or educational purposes, to view or enjoy those activities.
Agritourism activities includes, but is not limited to, the following:
- historic, cultural, and on-site educational programs;
- guided and self-guided tours, including school tours;
- animal exhibitions or petting zoos;
- agricultural crop mazes, such as corn or flower mazes;
- harvest-your-own or U-pick operations;
- horseback or pony rides; and
- hayrides or sleigh rides.
Agritourism activities DO NOT include the following activities:
- hunting;
- fishing;
- amusement rides;
- rodeos;
- off-road biking or motorized off-highway or all-terrain vehicle activities;
- boating, swimming, canoeing, hiking, camping, skiing, bounce houses, or similar activities; or
- entertainment venues such as weddings or concerts.
How Much Are the Credits?
The Illinois credit equals the smaller of:
- 100% of the liability insurance premiums paid by the taxpayer; or
- $1,000.
The state caps total credits at $1 million each calendar year.
What Happens to Unused Credits?
Taxpayers can carryforward unused Illinois credits for up to 5 years after the excess credit year.
When Do the Credits Sunset or Expire?
The Illinois agritourism liability insurance credit is set to sunset or expire for tax years ending on or before December 31, 2023.
