summary
Introduced
01/27/2026
01/27/2026
In Committee
01/27/2026
01/27/2026
Crossed Over
Passed
Dead
Introduced Session
104th General Assembly
Bill Summary
Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Makes changes concerning the taxes due under the Act on estates that contain qualified farm property. Provides that, for the purposes of calculating the State Death Tax Credit, those estates are subject to an exemption of $6,000,000 (rather than an exclusion amount of $4,000,000), which shall be deducted from the net estate value after the net estate value is computed in accordance with the Act. Provides that the exemption shall be adjusted each year according to the increase in the Consumer Price Index. Makes changes concerning the calculation of the deceased spousal unused exclusion amount for those estates. Provides for a special use valuation to provide that the value of the qualified farm property shall be calculated without regard to certain limitations under the Internal Revenue Code. Makes changes concerning the definition of "qualified heir". Effective January 1, 2027.
AI Summary
This bill, effective January 1, 2027, amends the Illinois Estate and Generation-Skipping Transfer Tax Act to provide special provisions for estates containing qualified farm property. For such estates, the bill increases the exemption amount used in calculating the State Death Tax Credit from $4,000,000 to $6,000,000, which will be adjusted annually based on the Consumer Price Index (CPI) to account for inflation. It also allows for the calculation of the deceased spousal unused exclusion amount, which is the portion of a deceased spouse's estate tax exemption that can be transferred to a surviving spouse, and permits a special use valuation for qualified farm property, meaning its value will be determined without certain federal limitations, and expands the definition of a "qualified heir" to include lineal descendants of the decedent's grandparents and their spouses, as well as adopted individuals.
Sponsors (2)
Last Action
Added as Co-Sponsor Sen. Javier L. Cervantes (on 02/20/2026)
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