Bill > HB2677

This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to provide more favorable tax treatment for estates containing qualified farm property. Specifically, the bill increases the estate tax exemption from $4,000,000 to $6,000,000 for eligible estates, with an annual adjustment based on the Consumer Price Index. The bill introduces a special use valuation provision that allows farm property to be valued without certain federal limitations, potentially reducing the estate's taxable value. Additionally, the bill expands the definition of "qualified heir" to include a broader range of family members, such as lineal descendants of a grandparent and their spouses, who can inherit the farm property. The bill also provides provisions for calculating and using the deceased spousal unused exemption amount, allowing surviving spouses to potentially transfer additional tax exemption from their last deceased spouse. These changes aim to provide more tax relief and flexibility for family-owned farms during estate transfers, making it easier for agricultural properties to remain within family ownership across generations.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2677&GAID=18&DocTypeID=HB&SessionID=114&GA=104