← All states
Tax Benefit for Agricultural and Rural Lending (Section 139L)
Illinois — state program25% of interest income excluded from federal taxable income
A new provision under IRC Section 139L allows eligible lenders to exclude 25% of interest income earned on qualifying loans secured by farm or rural real property from federal taxable income. Loans must be made on or after July 4, 2025.
Program details
- Type
- tax-credit
- Amount
- 25% of interest income excluded from federal taxable income
- Eligibility
- Qualified lenders including U.S. banks and savings associations, certain regulated insurance companies, Farm Credit System institutions, and other lenders meeting IRS eligibility requirements; loans must be secured by farm or rural real property used primarily for agricultural or rural purposes, made on or after July 4, 2025
- Status
- open
- Administrator
- IRS
Source: Illinois — state program. Confirm current terms with the administering agency before applying.