Illinois 2025-2026 Regular Session

Illinois House Bill HB1457

Introduced
1/21/25  
Refer
1/28/25  
Refer
2/18/25  

Caption

ESTATE TAX-EXCLUSION AMT

Impact

If enacted, HB1457 would reinforce tax exemptions for a larger segment of the population, allowing more people to retain their wealth without the looming concern of heavy taxation upon death. The adjustment is expected to particularly benefit families and individuals from middle to upper-income brackets, easing the tax burden during estate transitions. Consequently, the bill may encourage greater investments and spending, contributing to the local economy as heirs might be less restricted by financial pressures from taxes.

Summary

House Bill 1457 proposes significant changes to the Illinois Estate and Generation-Skipping Transfer Tax Act by increasing the exclusion amount from $4,000,000 to $12,060,000 for individuals who pass away on or after January 1, 2026. This increase aims to provide tax relief to estates that might otherwise incur burdensome taxes under the current law. By raising the exclusion limit, the bill seeks to align Illinois more closely with federal thresholds, potentially alleviating the financial strain on families inheriting substantial estates and thereby promoting economic stability among Illinois residents.

Contention

While proponents advocate for the bill on the grounds of fairness and economic incentive, opponents may express concerns regarding its fiscal impacts on state revenue. Critics might argue that increasing the exclusion amount could reduce funds available for public services and programs, as estate taxes contribute significantly to the state budget. This contention stems from the view that while individual families benefit, it may come at the expense of broader community needs, potentially provoking debates about the sustainability of such tax policies.

Companion Bills

No companion bills found.

Previously Filed As

IL HB2601

ESTATE TAX-EXCLUSION AMT

IL HB0016

ESTATE TAX-EXCLUSION AMOUNT

IL SB0139

ESTATE TAX-EXCLUSION AMOUNT

IL HB0012

ESTATE TX-EXCLUSION AMOUNT

IL SB0134

ESTATE TAX-SPOUSAL EXCLUSION

IL SB1828

ESTATE TAX-REPEAL

IL HB3118

ESTATE TAX-REPEAL

IL SB1735

ESTATE TAX-PHASE OUT

IL HB2865

ESTATE TAX-PHASE OUT

IL SB2038

ESTATE TAX-COMPUTATION

Similar Bills

NJ S1461

Modifies collective Statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.

NJ A1315

Modifies collective statewide transfer agreement and reverse transfer agreement; establishes New Jersey Transfer Ombudsperson within Office of Secretary of Higher Education.

TX SB1559

Relating to conflicts between a protective order and certain other orders and to the transfer of a protective order.

NV AB62

Revises provisions relating to transferable tax credits for affordable housing. (BDR 32-437)

DE HB147

An Act To Amend Title 12, Title 18, Title 25, And Title 30 Of The Delaware Code Relating To The Uniform Real Property Transfer On Death Act.

MS SB2226

Youth court; revise transfer to circuit court.

MS SB2344

Youth court; revise transfer to circuit court.

TX SB3039

Relating to the transfer of students in public higher education and to transparency regarding certificate or degree program requirements.