Illinois 2025-2026 Regular Session

Illinois House Bill HB1457 Compare Versions

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

Old	New	Differences
1	1	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1457 Introduced , by Rep. Norine K. Hammond SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-2 Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Increases the exclusion amount from $4,000,000 to $12,060,000 for persons dying on or after January 1, 2026. Effective immediately. LRB104 03257 HLH 13279 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1457 Introduced , by Rep. Norine K. Hammond 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. Increases the exclusion amount from $4,000,000 to $12,060,000 for persons dying on or after January 1, 2026. Effective immediately. LRB104 03257 HLH 13279 b LRB104 03257 HLH 13279 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB1457 Introduced , by Rep. Norine K. Hammond 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. Increases the exclusion amount from $4,000,000 to $12,060,000 for persons dying on or after January 1, 2026. Effective immediately.
6	6	LRB104 03257 HLH 13279 b LRB104 03257 HLH 13279 b
7	7	LRB104 03257 HLH 13279 b
8	8	A BILL FOR
9	9	HB1457LRB104 03257 HLH 13279 b HB1457 LRB104 03257 HLH 13279 b
10	10	HB1457 LRB104 03257 HLH 13279 b
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 HB1457 Introduced , by Rep. Norine K. Hammond 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. Increases the exclusion amount from $4,000,000 to $12,060,000 for persons dying on or after January 1, 2026. Effective immediately.
41	41	LRB104 03257 HLH 13279 b LRB104 03257 HLH 13279 b
42	42	LRB104 03257 HLH 13279 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 before January 1, 2026, and (iv) $12,060,000 for persons
124	124	21 dying on or after January 1, 2026, and with reduction to the
125	125	22 adjusted taxable estate for any qualified terminable interest
126	126	23 property election as defined in subsection (b-1) of this
127	127	24 Section.
128	128	25 (b-1) The person required to file the Illinois return may
129	129	26 elect on a timely filed Illinois return a marital deduction
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140	140	1 for qualified terminable interest property under Section
141	141	2 2056(b)(7) of the Internal Revenue Code for purposes of the
142	142	3 Illinois estate tax that is separate and independent of any
143	143	4 qualified terminable interest property election for federal
144	144	5 estate tax purposes. For purposes of the Illinois estate tax,
145	145	6 the inclusion of property in the gross estate of a surviving
146	146	7 spouse is the same as under Section 2044 of the Internal
147	147	8 Revenue Code.
148	148	9 In the case of any trust for which a State or federal
149	149	10 qualified terminable interest property election is made, the
150	150	11 trustee may not retain non-income producing assets for more
151	151	12 than a reasonable amount of time without the consent of the
152	152	13 surviving spouse.
153	153	14 "Taxable transfer" means an event that gives rise to a
154	154	15 state tax credit, including any credit as a result of the
155	155	16 imposition of an additional tax under Section 2032A(c) of the
156	156	17 Internal Revenue Code.
157	157	18 "Transferee" means a transferee within the meaning of
158	158	19 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
159	159	20 Code.
160	160	21 "Transferred property" means:
161	161	22 (1) With respect to a taxable transfer occurring at
162	162	23 the death of an individual, the deceased individual's
163	163	24 gross estate as defined in Section 2031 of the Internal
164	164	25 Revenue Code.
165	165	26 (2) With respect to a taxable transfer occurring as a
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176	176	1 result of a taxable termination as defined in Section
177	177	2 2612(a) of the Internal Revenue Code, the taxable amount
178	178	3 determined under Section 2622(a) of the Internal Revenue
179	179	4 Code.
180	180	5 (3) With respect to a taxable transfer occurring as a
181	181	6 result of a taxable distribution as defined in Section
182	182	7 2612(b) of the Internal Revenue Code, the taxable amount
183	183	8 determined under Section 2621(a) of the Internal Revenue
184	184	9 Code.
185	185	10 (4) With respect to an event which causes the
186	186	11 imposition of an additional estate tax under Section
187	187	12 2032A(c) of the Internal Revenue Code, the qualified real
188	188	13 property that was disposed of or which ceased to be used
189	189	14 for the qualified use, within the meaning of Section
190	190	15 2032A(c)(1) of the Internal Revenue Code.
191	191	16 "Trust" includes a trust as defined in Section 2652(b)(1)
192	192	17 of the Internal Revenue Code.
193	193	18 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
194	194	19 97-636, eff. 6-1-12.)
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