Illinois 2025-2026 Regular Session

Illinois House Bill HB3118 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 HB3118 Introduced , by Rep. Blaine Wilhour 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 no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act. LRB104 11236 HLH 21318 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3118 Introduced , by Rep. Blaine Wilhour 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 no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act. LRB104 11236 HLH 21318 b LRB104 11236 HLH 21318 b A BILL FOR
2	2	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3118 Introduced , by Rep. Blaine Wilhour 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 no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act.
8	8	LRB104 11236 HLH 21318 b LRB104 11236 HLH 21318 b
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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 "Federal estate tax" means the tax due to the United
22	22	10 States with respect to a taxable transfer under Chapter 11 of
23	23	11 the Internal Revenue Code.
24	24	12 "Federal generation-skipping transfer tax" means the tax
25	25	13 due to the United States with respect to a taxable transfer
26	26	14 under Chapter 13 of the Internal Revenue Code.
27	27	15 "Federal return" means the federal estate tax return with
28	28	16 respect to the federal estate tax and means the federal
29	29	17 generation-skipping transfer tax return with respect to the
30	30	18 federal generation-skipping transfer tax.
31	31	19 "Federal transfer tax" means the federal estate tax or the
32	32	20 federal generation-skipping transfer tax.
33	33	21 "Illinois estate tax" means the tax due to this State with
34	34	22 respect to a taxable transfer.
35	35	23 "Illinois generation-skipping transfer tax" means the tax
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39	39	104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB3118 Introduced , by Rep. Blaine Wilhour 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 no tax shall be imposed under the Act for persons dying on or after the effective date of the amendatory Act or for transfers made on or after the effective date of the amendatory Act.
45	45	LRB104 11236 HLH 21318 b LRB104 11236 HLH 21318 b
46	46	LRB104 11236 HLH 21318 b
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 due to this State with respect to a taxable transfer that gives
75	75	2 rise to a federal generation-skipping transfer tax.
76	76	3 "Illinois transfer tax" means the Illinois estate tax or
77	77	4 the Illinois generation-skipping transfer tax.
78	78	5 "Internal Revenue Code" means, unless otherwise provided,
79	79	6 the Internal Revenue Code of 1986, as amended from time to
80	80	7 time.
81	81	8 "Non-resident trust" means a trust that is not a resident
82	82	9 of this State for purposes of the Illinois Income Tax Act, as
83	83	10 amended from time to time.
84	84	11 "Person" means and includes any individual, trust, estate,
85	85	12 partnership, association, company or corporation.
86	86	13 "Qualified heir" means a qualified heir as defined in
87	87	14 Section 2032A(e)(1) of the Internal Revenue Code.
88	88	15 "Resident trust" means a trust that is a resident of this
89	89	16 State for purposes of the Illinois Income Tax Act, as amended
90	90	17 from time to time.
91	91	18 "State" means any state, territory or possession of the
92	92	19 United States and the District of Columbia.
93	93	20 "State tax credit" means:
94	94	21 (a) For persons dying on or after January 1, 2003 and
95	95	22 through December 31, 2005, an amount equal to the full credit
96	96	23 calculable under Section 2011 or Section 2604 of the Internal
97	97	24 Revenue Code as the credit would have been computed and
98	98	25 allowed under the Internal Revenue Code as in effect on
99	99	26 December 31, 2001, without the reduction in the State Death
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110	110	1 Tax Credit as provided in Section 2011(b)(2) or the
111	111	2 termination of the State Death Tax Credit as provided in
112	112	3 Section 2011(f) as enacted by the Economic Growth and Tax
113	113	4 Relief Reconciliation Act of 2001, but recognizing the
114	114	5 increased applicable exclusion amount through December 31,
115	115	6 2005.
116	116	7 (b) For persons dying after December 31, 2005 and on or
117	117	8 before December 31, 2009, and for persons dying after December
118	118	9 31, 2010 and prior to the effective date of this amendatory Act
119	119	10 of the 104th General Assembly, an amount equal to the full
120	120	11 credit calculable under Section 2011 or 2604 of the Internal
121	121	12 Revenue Code as the credit would have been computed and
122	122	13 allowed under the Internal Revenue Code as in effect on
123	123	14 December 31, 2001, without the reduction in the State Death
124	124	15 Tax Credit as provided in Section 2011(b)(2) or the
125	125	16 termination of the State Death Tax Credit as provided in
126	126	17 Section 2011(f) as enacted by the Economic Growth and Tax
127	127	18 Relief Reconciliation Act of 2001, but recognizing the
128	128	19 exclusion amount of only (i) $2,000,000 for persons dying
129	129	20 prior to January 1, 2012, (ii) $3,500,000 for persons dying on
130	130	21 or after January 1, 2012 and prior to January 1, 2013, and
131	131	22 (iii) $4,000,000 for persons dying on or after January 1,
132	132	23 2013, and with reduction to the adjusted taxable estate for
133	133	24 any qualified terminable interest property election as defined
134	134	25 in subsection (b-1) of this Section.
135	135	26 (b-1) The person required to file the Illinois return may
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146	146	1 elect on a timely filed Illinois return a marital deduction
147	147	2 for qualified terminable interest property under Section
148	148	3 2056(b)(7) of the Internal Revenue Code for purposes of the
149	149	4 Illinois estate tax that is separate and independent of any
150	150	5 qualified terminable interest property election for federal
151	151	6 estate tax purposes. For purposes of the Illinois estate tax,
152	152	7 the inclusion of property in the gross estate of a surviving
153	153	8 spouse is the same as under Section 2044 of the Internal
154	154	9 Revenue Code.
155	155	10 In the case of any trust for which a State or federal
156	156	11 qualified terminable interest property election is made, the
157	157	12 trustee may not retain non-income producing assets for more
158	158	13 than a reasonable amount of time without the consent of the
159	159	14 surviving spouse.
160	160	15 "Taxable transfer" means an event that gives rise to a
161	161	16 state tax credit, including any credit as a result of the
162	162	17 imposition of an additional tax under Section 2032A(c) of the
163	163	18 Internal Revenue Code.
164	164	19 "Transferee" means a transferee within the meaning of
165	165	20 Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
166	166	21 Code.
167	167	22 "Transferred property" means:
168	168	23 (1) With respect to a taxable transfer occurring at
169	169	24 the death of an individual, the deceased individual's
170	170	25 gross estate as defined in Section 2031 of the Internal
171	171	26 Revenue Code.
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182	182	1 (2) With respect to a taxable transfer occurring as a
183	183	2 result of a taxable termination as defined in Section
184	184	3 2612(a) of the Internal Revenue Code, the taxable amount
185	185	4 determined under Section 2622(a) of the Internal Revenue
186	186	5 Code.
187	187	6 (3) With respect to a taxable transfer occurring as a
188	188	7 result of a taxable distribution as defined in Section
189	189	8 2612(b) of the Internal Revenue Code, the taxable amount
190	190	9 determined under Section 2621(a) of the Internal Revenue
191	191	10 Code.
192	192	11 (4) With respect to an event which causes the
193	193	12 imposition of an additional estate tax under Section
194	194	13 2032A(c) of the Internal Revenue Code, the qualified real
195	195	14 property that was disposed of or which ceased to be used
196	196	15 for the qualified use, within the meaning of Section
197	197	16 2032A(c)(1) of the Internal Revenue Code.
198	198	17 "Trust" includes a trust as defined in Section 2652(b)(1)
199	199	18 of the Internal Revenue Code.
200	200	19 (Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
201	201	20 97-636, eff. 6-1-12.)
202	202	21 (35 ILCS 405/3) (from Ch. 120, par. 405A-3)
203	203	22 Sec. 3. Illinois estate tax.
204	204	23 (a) Imposition of Tax. An Illinois estate tax is imposed
205	205	24 on every taxable transfer involving transferred property
206	206	25 having a tax situs within the State of Illinois.
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217	217	1 (b) Amount of tax. On estates of persons dying before
218	218	2 January 1, 2003, the amount of the Illinois estate tax shall be
219	219	3 the state tax credit, as defined in Section 2 of this Act, with
220	220	4 respect to the taxable transfer reduced by the lesser of:
221	221	5 (1) the amount of the state tax credit paid to any
222	222	6 other state or states; and
223	223	7 (2) the amount determined by multiplying the maximum
224	224	8 state tax credit allowable with respect to the taxable
225	225	9 transfer by the percentage which the gross value of the
226	226	10 transferred property not having a tax situs in Illinois
227	227	11 bears to the gross value of the total transferred
228	228	12 property.
229	229	13 (c) On estates of persons dying on or after January 1, 2003
230	230	14 and prior to the effective date of this amendatory Act of the
231	231	15 104th General Assembly, the amount of the Illinois estate tax
232	232	16 shall be the state tax credit, as defined in Section 2 of this
233	233	17 Act, reduced by the amount determined by multiplying the state
234	234	18 tax credit with respect to the taxable transfer by the
235	235	19 percentage which the gross value of the transferred property
236	236	20 not having a tax situs in Illinois bears to the gross value of
237	237	21 the total transferred property.
238	238	22 (d) No tax shall be imposed under this Act for persons
239	239	23 dying on or after the effective date of this amendatory Act of
240	240	24 the 104th General Assembly.
241	241	25 (Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
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