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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
A new IRC Section 139L provision allows eligible lenders to exclude 25% of interest income earned on qualifying agricultural and rural loans from federal taxable income, incentivizing lending in agricultural and rural areas.

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 that meet IRS eligibility requirements. Loans must be secured by farm or qualifying rural property.
Status
open
Administrator
IRS
Source: Illinois — state program. Confirm current terms with the administering agency before applying.

Find out whether your facility qualifies