Illinois 2023-2024 Regular Session

Illinois Senate Bill SB1627 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 SB1627 Introduced 2/8/2023, by Sen. David Koehler 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 person's adjusted taxable estate shall not include the value of the decedent's ownership interest in qualified farm property. Provides that certain donations must be made to food banks for property to be considered qualified farm property. Effective immediately. LRB103 04678 HLH 52509 b A BILL FOR 103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1627 Introduced 2/8/2023, by Sen. David Koehler 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 person's adjusted taxable estate shall not include the value of the decedent's ownership interest in qualified farm property. Provides that certain donations must be made to food banks for property to be considered qualified farm property. Effective immediately. LRB103 04678 HLH 52509 b LRB103 04678 HLH 52509 b A BILL FOR
2	2	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1627 Introduced 2/8/2023, by Sen. David Koehler 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 person's adjusted taxable estate shall not include the value of the decedent's ownership interest in qualified farm property. Provides that certain donations must be made to food banks for property to be considered qualified farm property. Effective immediately.
6	6	LRB103 04678 HLH 52509 b LRB103 04678 HLH 52509 b
7	7	LRB103 04678 HLH 52509 b
8	8	A BILL FOR
9	9	SB1627LRB103 04678 HLH 52509 b SB1627 LRB103 04678 HLH 52509 b
10	10	SB1627 LRB103 04678 HLH 52509 b
11	11	1 AN ACT concerning State government.
12	12	2 Be it enacted by the People of the State of Illinois,
13	13	3 represented in the General Assembly:
14	14	4 Section 5. The Illinois Estate and Generation-Skipping
15	15	5 Transfer Tax Act is amended by changing Section 2 as follows:
16	16	6 (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
17	17	7 Sec. 2. Definitions.
18	18	8 "Farm property" means real property used primarily for
19	19	9 raising or harvesting agricultural or horticultural
20	20	10 commodities for commercial sale.
21	21	11 "Federal estate tax" means the tax due to the United
22	22	12 States with respect to a taxable transfer under Chapter 11 of
23	23	13 the Internal Revenue Code.
24	24	14 "Federal generation-skipping transfer tax" means the tax
25	25	15 due to the United States with respect to a taxable transfer
26	26	16 under Chapter 13 of the Internal Revenue Code.
27	27	17 "Federal return" means the federal estate tax return with
28	28	18 respect to the federal estate tax and means the federal
29	29	19 generation-skipping transfer tax return with respect to the
30	30	20 federal generation-skipping transfer tax.
31	31	21 "Federal transfer tax" means the federal estate tax or the
32	32	22 federal generation-skipping transfer tax.
33	33	23 "Food bank" means a food bank in Illinois that received
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37	37	103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB1627 Introduced 2/8/2023, by Sen. David Koehler SYNOPSIS AS INTRODUCED:
38	38	35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2
39	39	35 ILCS 405/2 from Ch. 120, par. 405A-2
40	40	Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2024, the person's adjusted taxable estate shall not include the value of the decedent's ownership interest in qualified farm property. Provides that certain donations must be made to food banks for property to be considered qualified farm property. Effective immediately.
41	41	LRB103 04678 HLH 52509 b LRB103 04678 HLH 52509 b
42	42	LRB103 04678 HLH 52509 b
43	43	A BILL FOR
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49	49	35 ILCS 405/2 from Ch. 120, par. 405A-2
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68	68	1 funding from The Emergency Food Assistance Program (TEFAP) in
69	69	2 the year in which it received the qualified donation.
70	70	3 "Illinois estate tax" means the tax due to this State with
71	71	4 respect to a taxable transfer.
72	72	5 "Illinois generation-skipping transfer tax" means the tax
73	73	6 due to this State with respect to a taxable transfer that gives
74	74	7 rise to a federal generation-skipping transfer tax.
75	75	8 "Illinois transfer tax" means the Illinois estate tax or
76	76	9 the Illinois generation-skipping transfer tax.
77	77	10 "Internal Revenue Code" means, unless otherwise provided,
78	78	11 the Internal Revenue Code of 1986, as amended from time to
79	79	12 time.
80	80	13 "Non-resident trust" means a trust that is not a resident
81	81	14 of this State for purposes of the Illinois Income Tax Act, as
82	82	15 amended from time to time.
83	83	16 "Person" means and includes any individual, trust, estate,
84	84	17 partnership, association, company or corporation.
85	85	18 "Qualified heir" means a qualified heir as defined in
86	86	19 Section 2032A(e)(1) of the Internal Revenue Code.
87	87	20 "Qualified donation" means a donation to a food bank of an
88	88	21 agricultural or horticultural commodity that is suitable for
89	89	22 human consumption and is produced on qualified farm property,
90	90	23 a cash equivalent donation to a food bank, or some combination
91	91	24 of those types of donations.
92	92	25 "Qualified farm property" means farm property:
93	93	26 (1) that the decedent had an ownership interest in at
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104	104	1 the time of the decedent's death and for at least 5 years
105	105	2 before the decedent's death; and
106	106	3 (2) from which the decedent made qualified donations
107	107	4 in at least 5 separate calendar years before the
108	108	5 decedent's death totaling at least 1% of the farm property
109	109	6 yield for the calendar year in which the donation was
110	110	7 made, as determined by the federally reported Farm Service
111	111	8 Agency acreage.
112	112	9 "Resident trust" means a trust that is a resident of this
113	113	10 State for purposes of the Illinois Income Tax Act, as amended
114	114	11 from time to time.
115	115	12 "State" means any state, territory or possession of the
116	116	13 United States and the District of Columbia.
117	117	14 "State tax credit" means:
118	118	15 (a) For persons dying on or after January 1, 2003 and
119	119	16 through December 31, 2005, an amount equal to the full credit
120	120	17 calculable under Section 2011 or Section 2604 of the Internal
121	121	18 Revenue Code as the credit would have been computed and
122	122	19 allowed under the Internal Revenue Code as in effect on
123	123	20 December 31, 2001, without the reduction in the State Death
124	124	21 Tax Credit as provided in Section 2011(b)(2) or the
125	125	22 termination of the State Death Tax Credit as provided in
126	126	23 Section 2011(f) as enacted by the Economic Growth and Tax
127	127	24 Relief Reconciliation Act of 2001, but recognizing the
128	128	25 increased applicable exclusion amount through December 31,
129	129	26 2005.
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140	140	1 (b) For persons dying after December 31, 2005 and on or
141	141	2 before December 31, 2009, and for persons dying after December
142	142	3 31, 2010, an amount equal to the full credit calculable under
143	143	4 Section 2011 or 2604 of the Internal Revenue Code as the credit
144	144	5 would have been computed and allowed under the Internal
145	145	6 Revenue Code as in effect on December 31, 2001, without the
146	146	7 reduction in the State Death Tax Credit as provided in Section
147	147	8 2011(b)(2) or the termination of the State Death Tax Credit as
148	148	9 provided in Section 2011(f) as enacted by the Economic Growth
149	149	10 and Tax Relief Reconciliation Act of 2001, but recognizing the
150	150	11 exclusion amount of only (i) $2,000,000 for persons dying
151	151	12 prior to January 1, 2012, (ii) $3,500,000 for persons dying on
152	152	13 or after January 1, 2012 and prior to January 1, 2013, and
153	153	14 (iii) $4,000,000 for persons dying on or after January 1,
154	154	15 2013, and with reduction to the adjusted taxable estate for
155	155	16 any qualified terminable interest property election as defined
156	156	17 in subsection (b-1) of this Section. For persons dying on or
157	157	18 after January 1, 2024, for the purposes of computing the State
158	158	19 tax credit, the person's adjusted taxable estate shall not
159	159	20 include the value of the person's ownership interest in
160	160	21 qualified farm property.
161	161	22 (b-1) The person required to file the Illinois return may
162	162	23 elect on a timely filed Illinois return a marital deduction
163	163	24 for qualified terminable interest property under Section
164	164	25 2056(b)(7) of the Internal Revenue Code for purposes of the
165	165	26 Illinois estate tax that is separate and independent of any
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176	176	1 qualified terminable interest property election for federal
177	177	2 estate tax purposes. For purposes of the Illinois estate tax,
178	178	3 the inclusion of property in the gross estate of a surviving
179	179	4 spouse is the same as under Section 2044 of the Internal
180	180	5 Revenue Code.
181	181	6 In the case of any trust for which a State or federal
182	182	7 qualified terminable interest property election is made, the
183	183	8 trustee may not retain non-income producing assets for more
184	184	9 than a reasonable amount of time without the consent of the
185	185	10 surviving spouse.
186	186	11 "Taxable transfer" means an event that gives rise to a
187	187	12 state tax credit, including any credit as a result of the
188	188	13 imposition of an additional tax under Section 2032A(c) of the
189	189	14 Internal Revenue Code.
190	190	15 "Transferee" means a transferee within the meaning of
191	191	16 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
192	192	17 Code.
193	193	18 "Transferred property" means:
194	194	19 (1) With respect to a taxable transfer occurring at
195	195	20 the death of an individual, the deceased individual's
196	196	21 gross estate as defined in Section 2031 of the Internal
197	197	22 Revenue Code.
198	198	23 (2) With respect to a taxable transfer occurring as a
199	199	24 result of a taxable termination as defined in Section
200	200	25 2612(a) of the Internal Revenue Code, the taxable amount
201	201	26 determined under Section 2622(a) of the Internal Revenue
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212	212	1 Code.
213	213	2 (3) With respect to a taxable transfer occurring as a
214	214	3 result of a taxable distribution as defined in Section
215	215	4 2612(b) of the Internal Revenue Code, the taxable amount
216	216	5 determined under Section 2621(a) of the Internal Revenue
217	217	6 Code.
218	218	7 (4) With respect to an event which causes the
219	219	8 imposition of an additional estate tax under Section
220	220	9 2032A(c) of the Internal Revenue Code, the qualified real
221	221	10 property that was disposed of or which ceased to be used
222	222	11 for the qualified use, within the meaning of Section
223	223	12 2032A(c)(1) of the Internal Revenue Code.
224	224	13 "Trust" includes a trust as defined in Section 2652(b)(1)
225	225	14 of the Internal Revenue Code.
226	226	15 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
227	227	16 97-636, eff. 6-1-12.)
228	228	17 Section 99. Effective date. This Act takes effect upon
229	229	18 becoming law.
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