Agricultural Sales Tax Exemption
What is the agricultural sales tax exemption?
Illinois’ agricultural production sales tax exemption helps farmers reduce costs on essential items used directly in producing food, fiber, and fuel. Since the 1980s, this exemption has applied to equipment, chemicals, and other qualified products vital to growing crops and raising livestock. Thanks to strong advocacy from Illinois Farm Bureau, the exemption remains in place today, ensuring farmers can access the tools they need for production without added tax burden. The exemption applies only to products directly necessary in the process of agricultural production. Not all items that are purchased for a farm are exempt.
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