summary
Introduced
02/05/2025
02/05/2025
In Committee
03/21/2025
03/21/2025
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that the amount of the taxes imposed under the Act shall be reduced in each year by 20%. Provides that no tax shall be imposed under the Act for persons dying on or after January 1, 2030 or for transfers occurring on or after January 1, 2030. Provides that the Act is repealed on January 1, 2031. Effective immediately.
AI Summary
This bill amends the Illinois Estate and Generation-Skipping Transfer Tax Act to gradually phase out estate and generation-skipping transfer taxes over the next few years. Specifically, the bill reduces the amount of estate and generation-skipping transfer taxes by 20% each year from 2026 to 2029. For estates of persons dying or transfers occurring between January 1, 2026, and January 1, 2027, the tax will be calculated at 80% of the previous rate; this reduction continues annually, dropping to 60% in 2027, 40% in 2028, and 20% in 2029. Starting January 1, 2030, no estate or generation-skipping transfer taxes will be imposed in Illinois. The bill also includes a provision that the entire Act will be repealed on January 1, 2031. This gradual phase-out provides a transition period for taxpayers and estate planners to adjust to the elimination of these taxes, ultimately removing this tax burden for future estates and transfers.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Rule 19(a) / Re-referred to Rules Committee (on 03/21/2025)
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ilga.gov/legislation/BillStatus.asp?DocNum=2865&GAID=18&DocTypeID=HB&SessionID=114&GA=104 |
| BillText | https://www.ilga.gov/legislation/104/HB/10400HB2865.htm |
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