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Tax Benefit for Agricultural and Rural Lending (Section 70435 / IRC §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. Qualifying loans must be secured by farm or rural real property primarily used for agricultural or rural purposes and 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 primarily used 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.