104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1733 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-2 Specifies that the amendatory Act may be referred to as the Estate Tax Threshold Fix Law. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026 and prior to January 1, 2028, the exclusion amount shall be the applicable exclusion amount calculated under the Internal Revenue Code (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the greater of (i) the applicable exclusion amount calculated under the Internal Revenue Code or (ii) the exclusion amount amount that would have been calculated under the Internal Revenue Code if the decedent had died in calendar year 2027. Effective immediately. LRB104 10441 HLH 20516 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1733 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2 Specifies that the amendatory Act may be referred to as the Estate Tax Threshold Fix Law. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026 and prior to January 1, 2028, the exclusion amount shall be the applicable exclusion amount calculated under the Internal Revenue Code (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the greater of (i) the applicable exclusion amount calculated under the Internal Revenue Code or (ii) the exclusion amount amount that would have been calculated under the Internal Revenue Code if the decedent had died in calendar year 2027. Effective immediately. LRB104 10441 HLH 20516 b LRB104 10441 HLH 20516 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1733 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2
35 ILCS 405/2 from Ch. 120, par. 405A-2
Specifies that the amendatory Act may be referred to as the Estate Tax Threshold Fix Law. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026 and prior to January 1, 2028, the exclusion amount shall be the applicable exclusion amount calculated under the Internal Revenue Code (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the greater of (i) the applicable exclusion amount calculated under the Internal Revenue Code or (ii) the exclusion amount amount that would have been calculated under the Internal Revenue Code if the decedent had died in calendar year 2027. Effective immediately.
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A BILL FOR
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HB1733 LRB104 10441 HLH 20516 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
4 Section 1. References to Act. This Act may be referred to
5 as the Estate Tax Threshold Fix Law
6 Section 5. The Illinois Estate and Generation-Skipping
7 Transfer Tax Act is amended by changing Section 2 as follows:
8 (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
9 Sec. 2. Definitions.
10 "Federal estate tax" means the tax due to the United
11 States with respect to a taxable transfer under Chapter 11 of
12 the Internal Revenue Code.
13 "Federal generation-skipping transfer tax" means the tax
14 due to the United States with respect to a taxable transfer
15 under Chapter 13 of the Internal Revenue Code.
16 "Federal return" means the federal estate tax return with
17 respect to the federal estate tax and means the federal
18 generation-skipping transfer tax return with respect to the
19 federal generation-skipping transfer tax.
20 "Federal transfer tax" means the federal estate tax or the
21 federal generation-skipping transfer tax.
22 "Illinois estate tax" means the tax due to this State with
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB1733 Introduced , by Rep. Ryan Spain SYNOPSIS AS INTRODUCED:
35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/2 from Ch. 120, par. 405A-2
35 ILCS 405/2 from Ch. 120, par. 405A-2
Specifies that the amendatory Act may be referred to as the Estate Tax Threshold Fix Law. Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026 and prior to January 1, 2028, the exclusion amount shall be the applicable exclusion amount calculated under the Internal Revenue Code (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Provides that, for persons dying on or after January 1, 2026, the exclusion amount shall be the greater of (i) the applicable exclusion amount calculated under the Internal Revenue Code or (ii) the exclusion amount amount that would have been calculated under the Internal Revenue Code if the decedent had died in calendar year 2027. Effective immediately.
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A BILL FOR
35 ILCS 405/2 from Ch. 120, par. 405A-2
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1 respect to a taxable transfer.
2 "Illinois generation-skipping transfer tax" means the tax
3 due to this State with respect to a taxable transfer that gives
4 rise to a federal generation-skipping transfer tax.
5 "Illinois transfer tax" means the Illinois estate tax or
6 the Illinois generation-skipping transfer tax.
7 "Internal Revenue Code" means, unless otherwise provided,
8 the Internal Revenue Code of 1986, as amended from time to
9 time.
10 "Non-resident trust" means a trust that is not a resident
11 of this State for purposes of the Illinois Income Tax Act, as
12 amended from time to time.
13 "Person" means and includes any individual, trust, estate,
14 partnership, association, company or corporation.
15 "Qualified heir" means a qualified heir as defined in
16 Section 2032A(e)(1) of the Internal Revenue Code.
17 "Resident trust" means a trust that is a resident of this
18 State for purposes of the Illinois Income Tax Act, as amended
19 from time to time.
20 "State" means any state, territory or possession of the
21 United States and the District of Columbia.
22 "State tax credit" means:
23 (a) For persons dying on or after January 1, 2003 and
24 through December 31, 2005, an amount equal to the full credit
25 calculable under Section 2011 or Section 2604 of the Internal
26 Revenue Code as the credit would have been computed and
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1 allowed under the Internal Revenue Code as in effect on
2 December 31, 2001, without the reduction in the State Death
3 Tax Credit as provided in Section 2011(b)(2) or the
4 termination of the State Death Tax Credit as provided in
5 Section 2011(f) as enacted by the Economic Growth and Tax
6 Relief Reconciliation Act of 2001, but recognizing the
7 increased applicable exclusion amount through December 31,
8 2005.
9 (b) For persons dying after December 31, 2005 and on or
10 before December 31, 2009, and for persons dying after December
11 31, 2010, an amount equal to the full credit calculable under
12 Section 2011 or 2604 of the Internal Revenue Code as the credit
13 would have been computed and allowed under the Internal
14 Revenue Code as in effect on December 31, 2001, without the
15 reduction in the State Death Tax Credit as provided in Section
16 2011(b)(2) or the termination of the State Death Tax Credit as
17 provided in Section 2011(f) as enacted by the Economic Growth
18 and Tax Relief Reconciliation Act of 2001, but with the
19 following modifications:
20 (1) the exclusion amount shall be: recognizing the
21 exclusion amount of only (i)
22 (A) $2,000,000 for persons dying prior to January
23 1, 2012; ,
24 (B) (ii) $3,500,000 for persons dying on or after
25 January 1, 2012 and prior to January 1, 2013; , and
26 (C) (iii) $4,000,000 for persons dying on or after
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1 January 1, 2013 and before January 1, 2026;
2 (D) for persons dying on or after January 1, 2026
3 and before January 1, 2028, the applicable exclusion
4 amount calculated under Section 2010 of the Internal
5 Revenue Code, including in that applicable exclusion
6 amount any deceased spousal unused exclusion amount
7 available after a valid election is made under
8 subparagraph (A) of paragraph (5) of subsection (c) of
9 Section 2010 of the Internal Revenue Code; , and
10 (E) for persons dying on or after January 1, 2028,
11 the greater of (i) the applicable exclusion amount
12 calculated under Section 2010 of the Internal Revenue
13 Code, including in that applicable exclusion amount
14 any deceased spousal unused exclusion amount available
15 after a valid election is made under subparagraph (A)
16 of paragraph (5) of subsection (c) of that Section, or
17 (ii) the applicable exclusion amount that would have
18 been calculated under Section 2010 of the Internal
19 Revenue Code if the decedent had died in calendar year
20 2027, including in that applicable exclusion amount
21 any deceased spousal unused exclusion amount available
22 after a valid election is made under subparagraph (A)
23 of paragraph (5) of subsection (c) of that Section;
24 and
25 (2) the State tax credit shall be calculated with a
26 reduction to the adjusted taxable estate for any qualified
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1 terminable interest property election as defined in
2 subsection (b-1) of this Section.
3 (b-1) The person required to file the Illinois return may
4 elect on a timely filed Illinois return a marital deduction
5 for qualified terminable interest property under Section
6 2056(b)(7) of the Internal Revenue Code for purposes of the
7 Illinois estate tax that is separate and independent of any
8 qualified terminable interest property election for federal
9 estate tax purposes. For purposes of the Illinois estate tax,
10 the inclusion of property in the gross estate of a surviving
11 spouse is the same as under Section 2044 of the Internal
12 Revenue Code.
13 In the case of any trust for which a State or federal
14 qualified terminable interest property election is made, the
15 trustee may not retain non-income producing assets for more
16 than a reasonable amount of time without the consent of the
17 surviving spouse.
18 "Taxable transfer" means an event that gives rise to a
19 state tax credit, including any credit as a result of the
20 imposition of an additional tax under Section 2032A(c) of the
21 Internal Revenue Code.
22 "Transferee" means a transferee within the meaning of
23 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
24 Code.
25 "Transferred property" means:
26 (1) With respect to a taxable transfer occurring at
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1 the death of an individual, the deceased individual's
2 gross estate as defined in Section 2031 of the Internal
3 Revenue Code.
4 (2) With respect to a taxable transfer occurring as a
5 result of a taxable termination as defined in Section
6 2612(a) of the Internal Revenue Code, the taxable amount
7 determined under Section 2622(a) of the Internal Revenue
8 Code.
9 (3) With respect to a taxable transfer occurring as a
10 result of a taxable distribution as defined in Section
11 2612(b) of the Internal Revenue Code, the taxable amount
12 determined under Section 2621(a) of the Internal Revenue
13 Code.
14 (4) With respect to an event which causes the
15 imposition of an additional estate tax under Section
16 2032A(c) of the Internal Revenue Code, the qualified real
17 property that was disposed of or which ceased to be used
18 for the qualified use, within the meaning of Section
19 2032A(c)(1) of the Internal Revenue Code.
20 "Trust" includes a trust as defined in Section 2652(b)(1)
21 of the Internal Revenue Code.
22 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
23 97-636, eff. 6-1-12.)
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