Illinois 2025-2026 Regular Session

Illinois House Bill HB2368 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 HB2368 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-235 ILCS 405/3 from Ch. 120, par. 405A-335 ILCS 405/4 from Ch. 120, par. 405A-4 Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the amount of the Illinois estate tax shall be the amount of the Illinois taxable estate, multiplied by the Illinois estate tax rate. Sets forth the estate tax rate. Provides that the "Illinois taxable estate" means the decedent's federal gross estate, subject to certain modifications, including a deduction in the amount of $4,000,000. Makes conforming changes with respect to the generation-skipping transfer tax. Effective immediately. LRB104 03009 HLH 13027 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2368 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED: 35 ILCS 405/2 from Ch. 120, par. 405A-235 ILCS 405/3 from Ch. 120, par. 405A-335 ILCS 405/4 from Ch. 120, par. 405A-4 35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/3 from Ch. 120, par. 405A-3 35 ILCS 405/4 from Ch. 120, par. 405A-4 Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the amount of the Illinois estate tax shall be the amount of the Illinois taxable estate, multiplied by the Illinois estate tax rate. Sets forth the estate tax rate. Provides that the "Illinois taxable estate" means the decedent's federal gross estate, subject to certain modifications, including a deduction in the amount of $4,000,000. Makes conforming changes with respect to the generation-skipping transfer tax. Effective immediately. LRB104 03009 HLH 13027 b LRB104 03009 HLH 13027 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2368 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
3	3	35 ILCS 405/2 from Ch. 120, par. 405A-235 ILCS 405/3 from Ch. 120, par. 405A-335 ILCS 405/4 from Ch. 120, par. 405A-4 35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/3 from Ch. 120, par. 405A-3 35 ILCS 405/4 from Ch. 120, par. 405A-4
4	4	35 ILCS 405/2 from Ch. 120, par. 405A-2
5	5	35 ILCS 405/3 from Ch. 120, par. 405A-3
6	6	35 ILCS 405/4 from Ch. 120, par. 405A-4
7	7	Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the amount of the Illinois estate tax shall be the amount of the Illinois taxable estate, multiplied by the Illinois estate tax rate. Sets forth the estate tax rate. Provides that the "Illinois taxable estate" means the decedent's federal gross estate, subject to certain modifications, including a deduction in the amount of $4,000,000. Makes conforming changes with respect to the generation-skipping transfer tax. Effective immediately.
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10	10	A BILL FOR
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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 Sections 2, 3, and 4 as
18	18	6 follows:
19	19	7 (35 ILCS 405/2) (from Ch. 120, par. 405A-2)
20	20	8 Sec. 2. Definitions.
21	21	9 "Exemption amount" means, for persons dying on or after
22	22	10 January 1, 2026 and for taxable transfers occurring on or
23	23	11 after January 1, 2026, $4,000,000.
24	24	12 "Federal estate tax" means the tax due to the United
25	25	13 States with respect to a taxable transfer under Chapter 11 of
26	26	14 the Internal Revenue Code.
27	27	15 "Federal generation-skipping transfer tax" means the tax
28	28	16 due to the United States with respect to a taxable transfer
29	29	17 under Chapter 13 of the Internal Revenue Code.
30	30	18 "Federal return" means the federal estate tax return with
31	31	19 respect to the federal estate tax and means the federal
32	32	20 generation-skipping transfer tax return with respect to the
33	33	21 federal generation-skipping transfer tax.
34	34	22 "Federal transfer tax" means the federal estate tax or the
35	35	23 federal generation-skipping transfer tax.
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2368 Introduced , by Rep. Margaret Croke SYNOPSIS AS INTRODUCED:
40	40	35 ILCS 405/2 from Ch. 120, par. 405A-235 ILCS 405/3 from Ch. 120, par. 405A-335 ILCS 405/4 from Ch. 120, par. 405A-4 35 ILCS 405/2 from Ch. 120, par. 405A-2 35 ILCS 405/3 from Ch. 120, par. 405A-3 35 ILCS 405/4 from Ch. 120, par. 405A-4
41	41	35 ILCS 405/2 from Ch. 120, par. 405A-2
42	42	35 ILCS 405/3 from Ch. 120, par. 405A-3
43	43	35 ILCS 405/4 from Ch. 120, par. 405A-4
44	44	Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2026, the amount of the Illinois estate tax shall be the amount of the Illinois taxable estate, multiplied by the Illinois estate tax rate. Sets forth the estate tax rate. Provides that the "Illinois taxable estate" means the decedent's federal gross estate, subject to certain modifications, including a deduction in the amount of $4,000,000. Makes conforming changes with respect to the generation-skipping transfer tax. Effective immediately.
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47	47	A BILL FOR
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53	53	35 ILCS 405/2 from Ch. 120, par. 405A-2
54	54	35 ILCS 405/3 from Ch. 120, par. 405A-3
55	55	35 ILCS 405/4 from Ch. 120, par. 405A-4
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74	74	1 "Illinois estate and generation-skipping transfer tax
75	75	2 rate" means:
76	76	3 (1) in the case of the Illinois estate tax:
77	77	4 (A) if the decedent's Illinois taxable estate is
78	78	5 $6,000,000 or less, 5%;
79	79	6 (B) if the decedent's Illinois taxable estate
80	80	7 exceeds $6,000,000 but does not exceed $16,000,000,
81	81	8 10%;
82	82	9 (C) if the decedent's Illinois taxable estate
83	83	10 exceeds $16,000,000 but does not exceed $21,000,000,
84	84	11 16%; and
85	85	12 (D) if the decedent's Illinois taxable estate
86	86	13 exceeds $21,000,000, 22%.
87	87	14 (2) in the case of the Illinois generation-skipping
88	88	15 transfer tax:
89	89	16 (A) if the amount by which the taxable transfer
90	90	17 exceeds the exemption amount is $6,000,000 or less,
91	91	18 5%;
92	92	19 (B) if the amount by which the taxable transfer
93	93	20 exceeds the exemption amount exceeds $6,000,000 but
94	94	21 does not exceed $16,000,000, 10%;
95	95	22 (C) if the amount by which the taxable transfer
96	96	23 exceeds the exemption amount exceeds $16,000,000 but
97	97	24 does not exceed $21,000,000, 16%; and
98	98	25 (D) if the amount by which the taxable transfer
99	99	26 exceeds the exemption amount exceeds $21,000,000, 22%.
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110	110	1 "Illinois estate tax" means the tax due to this State with
111	111	2 respect to a taxable transfer.
112	112	3 "Illinois generation-skipping transfer tax" means the tax
113	113	4 due to this State with respect to a taxable transfer that gives
114	114	5 rise to a federal generation-skipping transfer tax.
115	115	6 "Illinois taxable estate" means the decedent's federal
116	116	7 gross estate, as provided under Section 2031 of the Internal
117	117	8 Revenue Code, without regard to whether the estate is subject
118	118	9 to the federal estate tax, modified as follows:
119	119	10 (1) the decedent's federal gross estate shall be
120	120	11 increased by:
121	121	12 (A) the value of any property in which the
122	122	13 decedent had a qualifying income interest for life and
123	123	14 for which an election was made under subsection (b-1)
124	124	15 of this Section for Illinois estate tax purposes but
125	125	16 was not made for federal estate tax purposes; and
126	126	17 (B) the aggregate amount of taxable gifts, as
127	127	18 defined in section 2503 of the Internal Revenue Code,
128	128	19 made by the decedent within 3 years of the date of
129	129	20 death; and
130	130	21 (2) the decedent's federal gross estate shall be
131	131	22 decreased by:
132	132	23 (A) the exemption amount;
133	133	24 (B) the deductions found in sections 2053, 2054,
134	134	25 2055, 2056, and 2056A of the Internal Revenue Code;
135	135	26 and
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146	146	1 (C) the marital deduction for qualified terminable
147	147	2 interest property available for elections made
148	148	3 pursuant to subsection (b-1) of this Section.
149	149	4 For the purposes of subparagraph (B) of paragraph (1) of
150	150	5 this definition, the amount of the addition equals the value
151	151	6 of the gift under section 2512 of the Internal Revenue Code and
152	152	7 excludes any value of the gift included in the federal taxable
153	153	8 estate or the value of any gift with a non-Illinois situs. The
154	154	9 tax situs of a gift of real or tangible personal property shall
155	155	10 be the location of the real or tangible personal property at
156	156	11 the time the gift was given. The tax situs of intangible
157	157	12 personal property shall be the state in which the decedent
158	158	13 resided at the time the gift was given.
159	159	14 "Illinois transfer tax" means the Illinois estate tax or
160	160	15 the Illinois generation-skipping transfer tax.
161	161	16 "Internal Revenue Code" means, unless otherwise provided,
162	162	17 the Internal Revenue Code of 1986, as amended from time to
163	163	18 time.
164	164	19 "Non-resident trust" means a trust that is not a resident
165	165	20 of this State for purposes of the Illinois Income Tax Act, as
166	166	21 amended from time to time.
167	167	22 "Person" means and includes any individual, trust, estate,
168	168	23 partnership, association, company or corporation.
169	169	24 "Qualified heir" means a qualified heir as defined in
170	170	25 Section 2032A(e)(1) of the Internal Revenue Code.
171	171	26 "Resident trust" means a trust that is a resident of this
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182	182	1 State for purposes of the Illinois Income Tax Act, as amended
183	183	2 from time to time.
184	184	3 "State" means any state, territory or possession of the
185	185	4 United States and the District of Columbia.
186	186	5 "State tax credit" means:
187	187	6 (a) For persons dying on or after January 1, 2003 and
188	188	7 through December 31, 2005, an amount equal to the full credit
189	189	8 calculable under Section 2011 or Section 2604 of the Internal
190	190	9 Revenue Code as the credit would have been computed and
191	191	10 allowed under the Internal Revenue Code as in effect on
192	192	11 December 31, 2001, without the reduction in the State Death
193	193	12 Tax Credit as provided in Section 2011(b)(2) or the
194	194	13 termination of the State Death Tax Credit as provided in
195	195	14 Section 2011(f) as enacted by the Economic Growth and Tax
196	196	15 Relief Reconciliation Act of 2001, but recognizing the
197	197	16 increased applicable exclusion amount through December 31,
198	198	17 2005.
199	199	18 (b) For persons dying after December 31, 2005 and on or
200	200	19 before December 31, 2009, and for persons dying after December
201	201	20 31, 2010, an amount equal to the full credit calculable under
202	202	21 Section 2011 or 2604 of the Internal Revenue Code as the credit
203	203	22 would have been computed and allowed under the Internal
204	204	23 Revenue Code as in effect on December 31, 2001, without the
205	205	24 reduction in the State Death Tax Credit as provided in Section
206	206	25 2011(b)(2) or the termination of the State Death Tax Credit as
207	207	26 provided in Section 2011(f) as enacted by the Economic Growth
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218	218	1 and Tax Relief Reconciliation Act of 2001, but recognizing the
219	219	2 exclusion amount of only (i) $2,000,000 for persons dying
220	220	3 prior to January 1, 2012, (ii) $3,500,000 for persons dying on
221	221	4 or after January 1, 2012 and prior to January 1, 2013, and
222	222	5 (iii) $4,000,000 for persons dying on or after January 1,
223	223	6 2013, and with reduction to the adjusted taxable estate for
224	224	7 any qualified terminable interest property election as defined
225	225	8 in subsection (b-1) of this Section.
226	226	9 (b-1) The person required to file the Illinois return may
227	227	10 elect on a timely filed Illinois return a marital deduction
228	228	11 for qualified terminable interest property under Section
229	229	12 2056(b)(7) of the Internal Revenue Code for purposes of the
230	230	13 Illinois estate tax that is separate and independent of any
231	231	14 qualified terminable interest property election for federal
232	232	15 estate tax purposes. For purposes of the Illinois estate tax,
233	233	16 the inclusion of property in the gross estate of a surviving
234	234	17 spouse is the same as under Section 2044 of the Internal
235	235	18 Revenue Code.
236	236	19 In the case of any trust for which a State or federal
237	237	20 qualified terminable interest property election is made, the
238	238	21 trustee may not retain non-income producing assets for more
239	239	22 than a reasonable amount of time without the consent of the
240	240	23 surviving spouse.
241	241	24 "Taxable transfer" means an event that gives rise to a
242	242	25 state tax credit, including any credit as a result of the
243	243	26 imposition of an additional tax under Section 2032A(c) of the
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254	254	1 Internal Revenue Code.
255	255	2 "Transferee" means a transferee within the meaning of
256	256	3 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
257	257	4 Code.
258	258	5 "Transferred property" means:
259	259	6 (1) With respect to a taxable transfer occurring at
260	260	7 the death of an individual, the deceased individual's
261	261	8 gross estate as defined in Section 2031 of the Internal
262	262	9 Revenue Code.
263	263	10 (2) With respect to a taxable transfer occurring as a
264	264	11 result of a taxable termination as defined in Section
265	265	12 2612(a) of the Internal Revenue Code, the taxable amount
266	266	13 determined under Section 2622(a) of the Internal Revenue
267	267	14 Code.
268	268	15 (3) With respect to a taxable transfer occurring as a
269	269	16 result of a taxable distribution as defined in Section
270	270	17 2612(b) of the Internal Revenue Code, the taxable amount
271	271	18 determined under Section 2621(a) of the Internal Revenue
272	272	19 Code.
273	273	20 (4) With respect to an event which causes the
274	274	21 imposition of an additional estate tax under Section
275	275	22 2032A(c) of the Internal Revenue Code, the qualified real
276	276	23 property that was disposed of or which ceased to be used
277	277	24 for the qualified use, within the meaning of Section
278	278	25 2032A(c)(1) of the Internal Revenue Code.
279	279	26 "Trust" includes a trust as defined in Section 2652(b)(1)
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290	290	1 of the Internal Revenue Code.
291	291	2 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
292	292	3 97-636, eff. 6-1-12.)
293	293	4 (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
294	294	5 Sec. 3. Illinois estate tax.
295	295	6 (a) Imposition of Tax. An Illinois estate tax is imposed
296	296	7 on every taxable transfer involving transferred property
297	297	8 having a tax situs within the State of Illinois.
298	298	9 (b) Amount of tax. On estates of persons dying before
299	299	10 January 1, 2003, the amount of the Illinois estate tax shall be
300	300	11 the state tax credit, as defined in Section 2 of this Act, with
301	301	12 respect to the taxable transfer reduced by the lesser of:
302	302	13 (1) the amount of the state tax credit paid to any
303	303	14 other state or states; and
304	304	15 (2) the amount determined by multiplying the maximum
305	305	16 state tax credit allowable with respect to the taxable
306	306	17 transfer by the percentage which the gross value of the
307	307	18 transferred property not having a tax situs in Illinois
308	308	19 bears to the gross value of the total transferred
309	309	20 property.
310	310	21 (c) On estates of persons dying on or after January 1, 2003
311	311	22 and before January 1, 2026, the amount of the Illinois estate
312	312	23 tax shall be the state tax credit, as defined in Section 2 of
313	313	24 this Act, reduced by the amount determined by multiplying the
314	314	25 state tax credit with respect to the taxable transfer by the
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325	325	1 percentage which the gross value of the transferred property
326	326	2 not having a tax situs in Illinois bears to the gross value of
327	327	3 the total transferred property.
328	328	4 (d) For estates of persons dying on or after January 1,
329	329	5 2026, the amount of the Illinois estate tax shall be the amount
330	330	6 of the Illinois taxable estate, multiplied by the Illinois
331	331	7 estate tax rate. No tax shall be due under this Act if the
332	332	8 decedent's Illinois taxable estate is not greater than zero.
333	333	9 (Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
334	334	10 (35 ILCS 405/4) (from Ch. 120, par. 405A-4)
335	335	11 Sec. 4. Illinois generation-skipping transfer tax.
336	336	12 (a) Imposition of tax. An Illinois generation-skipping
337	337	13 transfer tax is imposed on every taxable transfer resulting in
338	338	14 federal generation-skipping transfer tax involving transferred
339	339	15 property having a tax situs within the State of Illinois.
340	340	16 (b) Amount of tax. For taxable transfers occurring before
341	341	17 January 1, 2026, the The amount of the Illinois
342	342	18 generation-skipping transfer tax shall be the maximum state
343	343	19 tax credit allowable with respect to the taxable transfer,
344	344	20 reduced by the lesser of:
345	345	21 (1) the amount of the state tax credit paid to any
346	346	22 other state or states; and
347	347	23 (2) the amount determined by multiplying the maximum
348	348	24 state tax credit allowable with respect to the taxable
349	349	25 transfer by the percentage which the gross value of the
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360	360	1 transferred property not having a tax situs in Illinois
361	361	2 bears to the gross value of the total transferred
362	362	3 property.
363	363	4 (c) For taxable transfers occurring on or after January 1,
364	364	5 2026, the amount by which the taxable transfer exceeds the
365	365	6 exemption amount, multiplied by the Illinois estate tax rate.
366	366	7 (Source: P.A. 86-737.)
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