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Tax Benefit for Agricultural and Rural Lending (Section 139L / Section 70435)
Illinois — state program25% of interest income excluded from federal taxable income
Eligible lenders may 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, and secured by property primarily used for agricultural or rural purposes.
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 / Treasury
Source: Illinois — state program. Confirm current terms with the administering agency before applying.