Illinois 2025-2026 Regular Session

Illinois House Bill HB0016 Compare Versions

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

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1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0016 Introduced , by Rep. Chris Miller 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, 2026, 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. LRB104 03378 HLH 13400 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0016 Introduced , by Rep. Chris Miller 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, 2026, 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. LRB104 03378 HLH 13400 b LRB104 03378 HLH 13400 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0016 Introduced , by Rep. Chris Miller 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, 2026, 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	LRB104 03378 HLH 13400 b LRB104 03378 HLH 13400 b
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8	8	A BILL FOR
9	9	HB0016LRB104 03378 HLH 13400 b HB0016 LRB104 03378 HLH 13400 b
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11	11	1 AN ACT concerning revenue.
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 "Federal estate tax" means the tax due to the United
19	19	9 States with respect to a taxable transfer under Chapter 11 of
20	20	10 the Internal Revenue Code.
21	21	11 "Federal generation-skipping transfer tax" means the tax
22	22	12 due to the United States with respect to a taxable transfer
23	23	13 under Chapter 13 of the Internal Revenue Code.
24	24	14 "Federal return" means the federal estate tax return with
25	25	15 respect to the federal estate tax and means the federal
26	26	16 generation-skipping transfer tax return with respect to the
27	27	17 federal generation-skipping transfer tax.
28	28	18 "Federal transfer tax" means the federal estate tax or the
29	29	19 federal generation-skipping transfer tax.
30	30	20 "Illinois estate tax" means the tax due to this State with
31	31	21 respect to a taxable transfer.
32	32	22 "Illinois generation-skipping transfer tax" means the tax
33	33	23 due to this State with respect to a taxable transfer that gives
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37	37	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB0016 Introduced , by Rep. Chris Miller 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, 2026, 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.
41	41	LRB104 03378 HLH 13400 b LRB104 03378 HLH 13400 b
42	42	LRB104 03378 HLH 13400 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 rise to a federal generation-skipping transfer tax.
69	69	2 "Illinois transfer tax" means the Illinois estate tax or
70	70	3 the Illinois generation-skipping transfer tax.
71	71	4 "Internal Revenue Code" means, unless otherwise provided,
72	72	5 the Internal Revenue Code of 1986, as amended from time to
73	73	6 time.
74	74	7 "Non-resident trust" means a trust that is not a resident
75	75	8 of this State for purposes of the Illinois Income Tax Act, as
76	76	9 amended from time to time.
77	77	10 "Person" means and includes any individual, trust, estate,
78	78	11 partnership, association, company or corporation.
79	79	12 "Qualified heir" means a qualified heir as defined in
80	80	13 Section 2032A(e)(1) of the Internal Revenue Code.
81	81	14 "Resident trust" means a trust that is a resident of this
82	82	15 State for purposes of the Illinois Income Tax Act, as amended
83	83	16 from time to time.
84	84	17 "State" means any state, territory or possession of the
85	85	18 United States and the District of Columbia.
86	86	19 "State tax credit" means:
87	87	20 (a) For persons dying on or after January 1, 2003 and
88	88	21 through December 31, 2005, an amount equal to the full credit
89	89	22 calculable under Section 2011 or Section 2604 of the Internal
90	90	23 Revenue Code as the credit would have been computed and
91	91	24 allowed under the Internal Revenue Code as in effect on
92	92	25 December 31, 2001, without the reduction in the State Death
93	93	26 Tax Credit as provided in Section 2011(b)(2) or the
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104	104	1 termination of the State Death Tax Credit as provided in
105	105	2 Section 2011(f) as enacted by the Economic Growth and Tax
106	106	3 Relief Reconciliation Act of 2001, but recognizing the
107	107	4 increased applicable exclusion amount through December 31,
108	108	5 2005.
109	109	6 (b) For persons dying after December 31, 2005 and on or
110	110	7 before December 31, 2009, and for persons dying after December
111	111	8 31, 2010, an amount equal to the full credit calculable under
112	112	9 Section 2011 or 2604 of the Internal Revenue Code as the credit
113	113	10 would have been computed and allowed under the Internal
114	114	11 Revenue Code as in effect on December 31, 2001, without the
115	115	12 reduction in the State Death Tax Credit as provided in Section
116	116	13 2011(b)(2) or the termination of the State Death Tax Credit as
117	117	14 provided in Section 2011(f) as enacted by the Economic Growth
118	118	15 and Tax Relief Reconciliation Act of 2001, but recognizing the
119	119	16 exclusion amount of only (i) $2,000,000 for persons dying
120	120	17 prior to January 1, 2012, (ii) $3,500,000 for persons dying on
121	121	18 or after January 1, 2012 and prior to January 1, 2013, and
122	122	19 (iii) $4,000,000 for persons dying on or after January 1, 2013
123	123	20 and prior to January 1, 2026, and (iv) for persons dying on or
124	124	21 after January 1, 2026, the applicable exclusion amount
125	125	22 calculated under Section 2010 of the Internal Revenue Code,
126	126	23 including any deceased spousal unused exclusion amount
127	127	24 available after a valid election is made under subparagraph
128	128	25 (A) of paragraph (5) of subsection (c) of that Section, and
129	129	26 with reduction to the adjusted taxable estate for any
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140	140	1 qualified terminable interest property election as defined in
141	141	2 subsection (b-1) of this Section.
142	142	3 (b-1) The person required to file the Illinois return may
143	143	4 elect on a timely filed Illinois return a marital deduction
144	144	5 for qualified terminable interest property under Section
145	145	6 2056(b)(7) of the Internal Revenue Code for purposes of the
146	146	7 Illinois estate tax that is separate and independent of any
147	147	8 qualified terminable interest property election for federal
148	148	9 estate tax purposes. For purposes of the Illinois estate tax,
149	149	10 the inclusion of property in the gross estate of a surviving
150	150	11 spouse is the same as under Section 2044 of the Internal
151	151	12 Revenue Code.
152	152	13 In the case of any trust for which a State or federal
153	153	14 qualified terminable interest property election is made, the
154	154	15 trustee may not retain non-income producing assets for more
155	155	16 than a reasonable amount of time without the consent of the
156	156	17 surviving spouse.
157	157	18 "Taxable transfer" means an event that gives rise to a
158	158	19 state tax credit, including any credit as a result of the
159	159	20 imposition of an additional tax under Section 2032A(c) of the
160	160	21 Internal Revenue Code.
161	161	22 "Transferee" means a transferee within the meaning of
162	162	23 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
163	163	24 Code.
164	164	25 "Transferred property" means:
165	165	26 (1) With respect to a taxable transfer occurring at
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176	176	1 the death of an individual, the deceased individual's
177	177	2 gross estate as defined in Section 2031 of the Internal
178	178	3 Revenue Code.
179	179	4 (2) With respect to a taxable transfer occurring as a
180	180	5 result of a taxable termination as defined in Section
181	181	6 2612(a) of the Internal Revenue Code, the taxable amount
182	182	7 determined under Section 2622(a) of the Internal Revenue
183	183	8 Code.
184	184	9 (3) With respect to a taxable transfer occurring as a
185	185	10 result of a taxable distribution as defined in Section
186	186	11 2612(b) of the Internal Revenue Code, the taxable amount
187	187	12 determined under Section 2621(a) of the Internal Revenue
188	188	13 Code.
189	189	14 (4) With respect to an event which causes the
190	190	15 imposition of an additional estate tax under Section
191	191	16 2032A(c) of the Internal Revenue Code, the qualified real
192	192	17 property that was disposed of or which ceased to be used
193	193	18 for the qualified use, within the meaning of Section
194	194	19 2032A(c)(1) of the Internal Revenue Code.
195	195	20 "Trust" includes a trust as defined in Section 2652(b)(1)
196	196	21 of the Internal Revenue Code.
197	197	22 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
198	198	23 97-636, eff. 6-1-12.)
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