Bill Text: IL HB2865 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: 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 Provides that the Act is repealed on January 1, 2031.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.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2025-02-06 - Referred to Rules Committee [HB2865 Detail]

Download: Illinois-2025-HB2865-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2865 Introduced , by Rep. Joe C. Sosnowski SYNOPSIS AS INTRODUCED:
35 ILCS 405/3 from Ch. 120, par. 405A-3
35 ILCS 405/4 from Ch. 120, par. 405A-4
35 ILCS 405/19 new
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 Provides that the Act is repealed on January 1, 2031.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.
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A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Estate and Generation-Skipping
Transfer Tax Act is amended by changing Sections 3 and 4 and by
adding Section 19 as follows:
(35 ILCS 405/3) (from Ch. 120, par. 405A-3)
Sec. 3. Illinois estate tax.
(a) Imposition of Tax. An Illinois estate tax is imposed
on every taxable transfer involving transferred property
having a tax situs within the State of Illinois.
(b) Amount of tax. On estates of persons dying before
January 1, 2003, the amount of the Illinois estate tax shall be
the state tax credit, as defined in Section 2 of this Act, with
respect to the taxable transfer reduced by the lesser of:
(1) the amount of the state tax credit paid to any
other state or states; and
(2) the amount determined by multiplying the maximum
state tax credit allowable with respect to the taxable
transfer by the percentage which the gross value of the
transferred property not having a tax situs in Illinois
bears to the gross value of the total transferred
property.

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(c) On estates of persons dying on or after January 1, 2003
and dying before January 1, 2026, the amount of the Illinois
estate tax shall be the state tax credit, as defined in Section
2 of this Act, reduced by the amount determined by multiplying
the state tax credit with respect to the taxable transfer by
the percentage which the gross value of the transferred
property not having a tax situs in Illinois bears to the gross
value of the total transferred property.
(d) On estates of person dying on or after January 1, 2026
and dying before January 1, 2027, the amount of the Illinois
estate tax shall be the amount calculated under subsection
(c), multiplied by 0.8.
(e) On estates of person dying on or after January 1, 2027
and dying before January 1, 2028, the amount of the Illinois
estate tax shall be the amount calculated under subsection
(c), multiplied by 0.6.
(f) On estates of person dying on or after January 1, 2028
and dying before January 1, 2029, the amount of the Illinois
estate tax shall be the amount calculated under subsection
(c), multiplied by 0.4.
(g) On estates of person dying on or after January 1, 2029
and dying before January 1, 2030, the amount of the Illinois
estate tax shall be the amount calculated under subsection
(c), multiplied by 0.2.
(h) No tax shall be imposed under this Act for persons
dying on or after January 1, 2030.

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(Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
(35 ILCS 405/4) (from Ch. 120, par. 405A-4)
Sec. 4. Illinois generation-skipping transfer tax.
(a) Imposition of tax. An Illinois generation-skipping
transfer tax is imposed on every taxable transfer resulting in
federal generation-skipping transfer tax involving transferred
property having a tax situs within the State of Illinois.
(b) Amount of tax. The amount of the Illinois
generation-skipping transfer tax shall be the maximum state
tax credit allowable with respect to the taxable transfer,
reduced by the lesser of:
(1) the amount of the state tax credit paid to any
other state or states; and
(2) the amount determined by multiplying the maximum
state tax credit allowable with respect to the taxable
transfer by the percentage which the gross value of the
transferred property not having a tax situs in Illinois
bears to the gross value of the total transferred
property.
(c) For transfers occurring on or after January 1, 2026
and occurring before January 1, 2027, the amount of the
Illinois generation-skipping transfer tax shall be the amount
calculated under subsection (b), multiplied by 0.8.
(d) For transfers occurring on or after January 1, 2027
and occurring before January 1, 2028, the amount of the

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Illinois generation-skipping transfer tax shall be the amount
calculated under subsection (b), multiplied by 0.6.
(e) For transfers occurring on or after January 1, 2028
and occurring before January 1, 2029, the amount of the
Illinois generation-skipping transfer tax shall be the amount
calculated under subsection (b), multiplied by 0.4.
(f) For transfers occurring on or after January 1, 2029
and occurring before January 1, 2030, the amount of the
Illinois generation-skipping transfer tax shall be the amount
calculated under subsection (b), multiplied by 0.2.
(h) No tax shall be imposed under this Act for persons
dying on or after January 1, 2030.
(Source: P.A. 86-737.)
(35 ILCS 405/19 new)
Sec. 19. Repeal. This Act is repealed on January 1, 2031.