104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026
HB2865
 
Introduced 2/6/2025, 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 Provides that the Act is repealed on January 1, 2031.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
 
HB2865LRB104 06572 HLH 16608 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois, 
3represented in the General Assembly:
 
4    Section 5. The Illinois Estate and Generation-Skipping 
5Transfer Tax Act is amended by changing Sections 3 and 4 and by 
6adding Section 19 as follows:
 
7    (35 ILCS 405/3)  (from Ch. 120, par. 405A-3)
8    Sec. 3. Illinois estate tax. 
9    (a) Imposition of Tax. An Illinois estate tax is imposed 
10on every taxable transfer involving transferred property 
11having a tax situs within the State of Illinois.
12    (b) Amount of tax. On estates of persons dying before 
13January 1, 2003, the amount of the Illinois estate tax shall be 
14the state tax credit, as defined in Section 2 of this Act, with 
15respect to the taxable transfer reduced by the lesser of: 
16        (1) the amount of the state tax credit paid to any 
17    other state or states; and 
18        (2) the amount determined by multiplying the maximum 
19    state tax credit allowable with respect to the taxable 
20    transfer by the percentage which the gross value of the 
21    transferred property not having a tax situs in Illinois 
22    bears to the gross value of the total transferred 
23    property.
 
 
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1    (c) On estates of persons dying on or after January 1, 2003 
2and dying before January 1, 2026, the amount of the Illinois 
3estate tax shall be the state tax credit, as defined in Section 
42 of this Act, reduced by the amount determined by multiplying 
5the state tax credit with respect to the taxable transfer by 
6the percentage which the gross value of the transferred 
7property not having a tax situs in Illinois bears to the gross 
8value of the total transferred property. 
9    (d) On estates of person dying on or after January 1, 2026 
10and dying before January 1, 2027, the amount of the Illinois 
11estate tax shall be the amount calculated under subsection 
12(c), multiplied by 0.8. 
13    (e) On estates of person dying on or after January 1, 2027 
14and dying before January 1, 2028, the amount of the Illinois 
15estate tax shall be the amount calculated under subsection 
16(c), multiplied by 0.6. 
17    (f) On estates of person dying on or after January 1, 2028 
18and dying before January 1, 2029, the amount of the Illinois 
19estate tax shall be the amount calculated under subsection 
20(c), multiplied by 0.4. 
21    (g) On estates of person dying on or after January 1, 2029 
22and dying before January 1, 2030, the amount of the Illinois 
23estate tax shall be the amount calculated under subsection 
24(c), multiplied by 0.2. 
25    (h) No tax shall be imposed under this Act for persons 
26dying on or after January 1, 2030. 
 
 
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1(Source: P.A. 93-30, eff. 6-20-03; 94-419, eff. 8-2-05.)
 
2    (35 ILCS 405/4)  (from Ch. 120, par. 405A-4)
3    Sec. 4. Illinois generation-skipping transfer tax. 
4    (a) Imposition of tax. An Illinois generation-skipping 
5transfer tax is imposed on every taxable transfer resulting in 
6federal generation-skipping transfer tax involving transferred 
7property having a tax situs within the State of Illinois.
8    (b) Amount of tax. The amount of the Illinois 
9generation-skipping transfer tax shall be the maximum state 
10tax credit allowable with respect to the taxable transfer, 
11reduced by the lesser of: 
12        (1) the amount of the state tax credit paid to any 
13    other state or states; and 
14        (2) the amount determined by multiplying the maximum 
15    state tax credit allowable with respect to the taxable 
16    transfer by the percentage which the gross value of the 
17    transferred property not having a tax situs in Illinois 
18    bears to the gross value of the total transferred 
19    property.
20    (c) For transfers occurring on or after January 1, 2026 
21and occurring before January 1, 2027, the amount of the 
22Illinois generation-skipping transfer tax shall be the amount 
23calculated under subsection (b), multiplied by 0.8. 
24    (d) For transfers occurring on or after January 1, 2027 
25and occurring before January 1, 2028, the amount of the 
 
 
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1Illinois generation-skipping transfer tax shall be the amount 
2calculated under subsection (b), multiplied by 0.6. 
3    (e) For transfers occurring on or after January 1, 2028 
4and occurring before January 1, 2029, the amount of the 
5Illinois generation-skipping transfer tax shall be the amount 
6calculated under subsection (b), multiplied by 0.4. 
7    (f) For transfers occurring on or after January 1, 2029 
8and occurring before January 1, 2030, the amount of the 
9Illinois generation-skipping transfer tax shall be the amount 
10calculated under subsection (b), multiplied by 0.2. 
11    (h) No tax shall be imposed under this Act for persons 
12dying on or after January 1, 2030. 
13(Source: P.A. 86-737.)
 
14    (35 ILCS 405/19 new)
15    Sec. 19. Repeal. This Act is repealed on January 1, 2031.
 
16    Section 99. Effective date. This Act takes effect upon 
17becoming law.