Illinois General Assembly - Full Text of HB0336
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Full Text of HB0336  102nd General Assembly

HB0336 102ND GENERAL ASSEMBLY

  
  

 


 
102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
HB0336

 

Introduced 1/29/2021, by Rep. Thomas M. Bennett

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 405/2  from Ch. 120, par. 405A-2

    Amends the Illinois Estate and Generation-Skipping Transfer Tax Act. Provides that, for persons dying on or after January 1, 2022, the exclusion amount shall be the applicable exclusion amount calculated under Section 2010 of the Internal Revenue Code, including any deceased spousal unused exclusion amount (currently, the exclusion amount for Illinois estate tax purposes is $4,000,000). Effective immediately.


LRB102 10605 HLH 15934 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB0336LRB102 10605 HLH 15934 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 Section 2 as follows:
 
6    (35 ILCS 405/2)  (from Ch. 120, par. 405A-2)
7    Sec. 2. Definitions.
8    "Federal estate tax" means the tax due to the United
9States with respect to a taxable transfer under Chapter 11 of
10the Internal Revenue Code.
11    "Federal generation-skipping transfer tax" means the tax
12due to the United States with respect to a taxable transfer
13under Chapter 13 of the Internal Revenue Code.
14    "Federal return" means the federal estate tax return with
15respect to the federal estate tax and means the federal
16generation-skipping transfer tax return with respect to the
17federal generation-skipping transfer tax.
18    "Federal transfer tax" means the federal estate tax or the
19federal generation-skipping transfer tax.
20    "Illinois estate tax" means the tax due to this State with
21respect to a taxable transfer.
22    "Illinois generation-skipping transfer tax" means the tax
23due to this State with respect to a taxable transfer that gives

 

 

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1rise to a federal generation-skipping transfer tax.
2    "Illinois transfer tax" means the Illinois estate tax or
3the Illinois generation-skipping transfer tax.
4    "Internal Revenue Code" means, unless otherwise provided,
5the Internal Revenue Code of 1986, as amended from time to
6time.
7    "Non-resident trust" means a trust that is not a resident
8of this State for purposes of the Illinois Income Tax Act, as
9amended from time to time.
10    "Person" means and includes any individual, trust, estate,
11partnership, association, company or corporation.
12    "Qualified heir" means a qualified heir as defined in
13Section 2032A(e)(1) of the Internal Revenue Code.
14    "Resident trust" means a trust that is a resident of this
15State for purposes of the Illinois Income Tax Act, as amended
16from time to time.
17    "State" means any state, territory or possession of the
18United States and the District of Columbia.
19    "State tax credit" means:
20    (a) For persons dying on or after January 1, 2003 and
21through December 31, 2005, an amount equal to the full credit
22calculable under Section 2011 or Section 2604 of the Internal
23Revenue Code as the credit would have been computed and
24allowed under the Internal Revenue Code as in effect on
25December 31, 2001, without the reduction in the State Death
26Tax Credit as provided in Section 2011(b)(2) or the

 

 

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1termination of the State Death Tax Credit as provided in
2Section 2011(f) as enacted by the Economic Growth and Tax
3Relief Reconciliation Act of 2001, but recognizing the
4increased applicable exclusion amount through December 31,
52005.
6    (b) For persons dying after December 31, 2005 and on or
7before December 31, 2009, and for persons dying after December
831, 2010, an amount equal to the full credit calculable under
9Section 2011 or 2604 of the Internal Revenue Code as the credit
10would have been computed and allowed under the Internal
11Revenue Code as in effect on December 31, 2001, without the
12reduction in the State Death Tax Credit as provided in Section
132011(b)(2) or the termination of the State Death Tax Credit as
14provided in Section 2011(f) as enacted by the Economic Growth
15and Tax Relief Reconciliation Act of 2001, but recognizing the
16exclusion amount of only (i) $2,000,000 for persons dying
17prior to January 1, 2012, (ii) $3,500,000 for persons dying on
18or after January 1, 2012 and prior to January 1, 2013, and
19(iii) $4,000,000 for persons dying on or after January 1, 2013
20and prior to January 1, 2022, and (iv) for persons dying on or
21after January 1, 2022, the applicable exclusion amount
22calculated under Section 2010 of the Internal Revenue Code,
23including any deceased spousal unused exclusion amount
24available after a valid election is made under subparagraph
25(A) of paragraph (5) of subsection (c) of that Section, and
26with reduction to the adjusted taxable estate for any

 

 

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1qualified terminable interest property election as defined in
2subsection (b-1) of this Section.
3    (b-1) The person required to file the Illinois return may
4elect on a timely filed Illinois return a marital deduction
5for qualified terminable interest property under Section
62056(b)(7) of the Internal Revenue Code for purposes of the
7Illinois estate tax that is separate and independent of any
8qualified terminable interest property election for federal
9estate tax purposes. For purposes of the Illinois estate tax,
10the inclusion of property in the gross estate of a surviving
11spouse is the same as under Section 2044 of the Internal
12Revenue Code.
13    In the case of any trust for which a State or federal
14qualified terminable interest property election is made, the
15trustee may not retain non-income producing assets for more
16than a reasonable amount of time without the consent of the
17surviving spouse.
18    "Taxable transfer" means an event that gives rise to a
19state tax credit, including any credit as a result of the
20imposition of an additional tax under Section 2032A(c) of the
21Internal Revenue Code.
22    "Transferee" means a transferee within the meaning of
23Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
24Code.
25    "Transferred property" means:
26        (1) With respect to a taxable transfer occurring at

 

 

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1    the death of an individual, the deceased individual's
2    gross estate as defined in Section 2031 of the Internal
3    Revenue Code.
4        (2) With respect to a taxable transfer occurring as a
5    result of a taxable termination as defined in Section
6    2612(a) of the Internal Revenue Code, the taxable amount
7    determined under Section 2622(a) of the Internal Revenue
8    Code.
9        (3) With respect to a taxable transfer occurring as a
10    result of a taxable distribution as defined in Section
11    2612(b) of the Internal Revenue Code, the taxable amount
12    determined under Section 2621(a) of the Internal Revenue
13    Code.
14        (4) With respect to an event which causes the
15    imposition of an additional estate tax under Section
16    2032A(c) of the Internal Revenue Code, the qualified real
17    property that was disposed of or which ceased to be used
18    for the qualified use, within the meaning of Section
19    2032A(c)(1) of the Internal Revenue Code.
20    "Trust" includes a trust as defined in Section 2652(b)(1)
21of the Internal Revenue Code.
22(Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
2397-636, eff. 6-1-12.)
 
24    Section 99. Effective date. This Act takes effect upon
25becoming law.