Illinois 2023-2024 Regular Session

Illinois House Bill HB1459 Compare Versions

Only one version of the bill is available at this time.

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1	1	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1459 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-2 Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2024, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately. LRB103 05807 HLH 50827 b FISCAL NOTE ACT MAY APPLY A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1459 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2 Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2024, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately. LRB103 05807 HLH 50827 b LRB103 05807 HLH 50827 b FISCAL NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1459 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2
4	4	35 ILCS 405/2 from Ch. 120, par. 405A-2
5	5	Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2024, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.
6	6	LRB103 05807 HLH 50827 b LRB103 05807 HLH 50827 b
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8	8	FISCAL NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY
9	9	FISCAL NOTE ACT MAY APPLY
10	10	A BILL FOR
11	11	HB1459LRB103 05807 HLH 50827 b HB1459 LRB103 05807 HLH 50827 b
12	12	HB1459 LRB103 05807 HLH 50827 b
13	13	1 AN ACT concerning revenue.
14	14	2 Be it enacted by the People of the State of Illinois,
15	15	3 represented in the General Assembly:
16	16	4 Section 5. The Illinois Estate and Generation-Skipping
17	17	5 Transfer Tax Act is amended by changing Section 2 as follows:
18	18	6 (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
19	19	7 Sec. 2. Definitions.
20	20	8 "Federal estate tax" means the tax due to the United
21	21	9 States with respect to a taxable transfer under Chapter 11 of
22	22	10 the Internal Revenue Code.
23	23	11 "Federal generation-skipping transfer tax" means the tax
24	24	12 due to the United States with respect to a taxable transfer
25	25	13 under Chapter 13 of the Internal Revenue Code.
26	26	14 "Federal return" means the federal estate tax return with
27	27	15 respect to the federal estate tax and means the federal
28	28	16 generation-skipping transfer tax return with respect to the
29	29	17 federal generation-skipping transfer tax.
30	30	18 "Federal transfer tax" means the federal estate tax or the
31	31	19 federal generation-skipping transfer tax.
32	32	20 "Illinois estate tax" means the tax due to this State with
33	33	21 respect to a taxable transfer.
34	34	22 "Illinois generation-skipping transfer tax" means the tax
35	35	23 due to this State with respect to a taxable transfer that gives
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39	39	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB1459 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2
41	41	35 ILCS 405/2 from Ch. 120, par. 405A-2
42	42	Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2024, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.
43	43	LRB103 05807 HLH 50827 b LRB103 05807 HLH 50827 b
44	44	LRB103 05807 HLH 50827 b
45	45	FISCAL NOTE ACT MAY APPLY FISCAL NOTE ACT MAY APPLY
46	46	FISCAL NOTE ACT MAY APPLY
47	47	A BILL FOR
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53	53	35 ILCS 405/2 from Ch. 120, par. 405A-2
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59	59	FISCAL NOTE ACT MAY APPLY
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75	75	HB1459 - 2 - LRB103 05807 HLH 50827 b
76	76	1 rise to a federal generation-skipping transfer tax.
77	77	2 "Illinois transfer tax" means the Illinois estate tax or
78	78	3 the Illinois generation-skipping transfer tax.
79	79	4 "Internal Revenue Code" means, unless otherwise provided,
80	80	5 the Internal Revenue Code of 1986, as amended from time to
81	81	6 time.
82	82	7 "Non-resident trust" means a trust that is not a resident
83	83	8 of this State for purposes of the Illinois Income Tax Act, as
84	84	9 amended from time to time.
85	85	10 "Person" means and includes any individual, trust, estate,
86	86	11 partnership, association, company or corporation.
87	87	12 "Qualified heir" means a qualified heir as defined in
88	88	13 Section 2032A(e)(1) of the Internal Revenue Code.
89	89	14 "Resident trust" means a trust that is a resident of this
90	90	15 State for purposes of the Illinois Income Tax Act, as amended
91	91	16 from time to time.
92	92	17 "State" means any state, territory or possession of the
93	93	18 United States and the District of Columbia.
94	94	19 "State tax credit" means:
95	95	20 (a) For persons dying on or after January 1, 2003 and
96	96	21 through December 31, 2005, an amount equal to the full credit
97	97	22 calculable under Section 2011 or Section 2604 of the Internal
98	98	23 Revenue Code as the credit would have been computed and
99	99	24 allowed under the Internal Revenue Code as in effect on
100	100	25 December 31, 2001, without the reduction in the State Death
101	101	26 Tax Credit as provided in Section 2011(b)(2) or the
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112	112	1 termination of the State Death Tax Credit as provided in
113	113	2 Section 2011(f) as enacted by the Economic Growth and Tax
114	114	3 Relief Reconciliation Act of 2001, but recognizing the
115	115	4 increased applicable exclusion amount through December 31,
116	116	5 2005.
117	117	6 (b) For persons dying after December 31, 2005 and on or
118	118	7 before December 31, 2009, and for persons dying after December
119	119	8 31, 2010, an amount equal to the full credit calculable under
120	120	9 Section 2011 or 2604 of the Internal Revenue Code as the credit
121	121	10 would have been computed and allowed under the Internal
122	122	11 Revenue Code as in effect on December 31, 2001, without the
123	123	12 reduction in the State Death Tax Credit as provided in Section
124	124	13 2011(b)(2) or the termination of the State Death Tax Credit as
125	125	14 provided in Section 2011(f) as enacted by the Economic Growth
126	126	15 and Tax Relief Reconciliation Act of 2001, but recognizing the
127	127	16 exclusion amount of only (i) $2,000,000 for persons dying
128	128	17 prior to January 1, 2012, (ii) $3,500,000 for persons dying on
129	129	18 or after January 1, 2012 and prior to January 1, 2013, and
130	130	19 (iii) $4,000,000 for persons dying on or after January 1, 2013
131	131	20 and prior to January 1, 2024, and (iv) for persons dying on or
132	132	21 after January 1, 2024, the applicable exclusion amount
133	133	22 calculated under Section 2010 of the Internal Revenue Code,
134	134	23 including any deceased spousal unused exclusion amount
135	135	24 available after a valid election is made under subparagraph
136	136	25 (A) of paragraph (5) of subsection (c) of that Section, and
137	137	26 with reduction to the adjusted taxable estate for any
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148	148	1 qualified terminable interest property election as defined in
149	149	2 subsection (b-1) of this Section.
150	150	3 (b-1) The person required to file the Illinois return may
151	151	4 elect on a timely filed Illinois return a marital deduction
152	152	5 for qualified terminable interest property under Section
153	153	6 2056(b)(7) of the Internal Revenue Code for purposes of the
154	154	7 Illinois estate tax that is separate and independent of any
155	155	8 qualified terminable interest property election for federal
156	156	9 estate tax purposes. For purposes of the Illinois estate tax,
157	157	10 the inclusion of property in the gross estate of a surviving
158	158	11 spouse is the same as under Section 2044 of the Internal
159	159	12 Revenue Code.
160	160	13 In the case of any trust for which a State or federal
161	161	14 qualified terminable interest property election is made, the
162	162	15 trustee may not retain non-income producing assets for more
163	163	16 than a reasonable amount of time without the consent of the
164	164	17 surviving spouse.
165	165	18 "Taxable transfer" means an event that gives rise to a
166	166	19 state tax credit, including any credit as a result of the
167	167	20 imposition of an additional tax under Section 2032A(c) of the
168	168	21 Internal Revenue Code.
169	169	22 "Transferee" means a transferee within the meaning of
170	170	23 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
171	171	24 Code.
172	172	25 "Transferred property" means:
173	173	26 (1) With respect to a taxable transfer occurring at
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184	184	1 the death of an individual, the deceased individual's
185	185	2 gross estate as defined in Section 2031 of the Internal
186	186	3 Revenue Code.
187	187	4 (2) With respect to a taxable transfer occurring as a
188	188	5 result of a taxable termination as defined in Section
189	189	6 2612(a) of the Internal Revenue Code, the taxable amount
190	190	7 determined under Section 2622(a) of the Internal Revenue
191	191	8 Code.
192	192	9 (3) With respect to a taxable transfer occurring as a
193	193	10 result of a taxable distribution as defined in Section
194	194	11 2612(b) of the Internal Revenue Code, the taxable amount
195	195	12 determined under Section 2621(a) of the Internal Revenue
196	196	13 Code.
197	197	14 (4) With respect to an event which causes the
198	198	15 imposition of an additional estate tax under Section
199	199	16 2032A(c) of the Internal Revenue Code, the qualified real
200	200	17 property that was disposed of or which ceased to be used
201	201	18 for the qualified use, within the meaning of Section
202	202	19 2032A(c)(1) of the Internal Revenue Code.
203	203	20 "Trust" includes a trust as defined in Section 2652(b)(1)
204	204	21 of the Internal Revenue Code.
205	205	22 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
206	206	23 97-636, eff. 6-1-12.)
207	207	24 Section 99. Effective date. This Act takes effect upon
208	208	25 becoming law.
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