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Full Text of HB3456  100th General Assembly

HB3456 100TH GENERAL ASSEMBLY

  
  

 


 
100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
HB3456

 

Introduced , by Rep. Ryan Spain

 

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, 2017, 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.


LRB100 08273 HLH 18375 b

 

 

A BILL FOR

 

HB3456LRB100 08273 HLH 18375 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 States
9with respect to a taxable transfer under Chapter 11 of the
10Internal 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 allowed
24under the Internal Revenue Code as in effect on December 31,
252001, without the reduction in the State Death Tax Credit as
26provided in Section 2011(b)(2) or the termination of the State

 

 

HB3456- 3 -LRB100 08273 HLH 18375 b

1Death Tax Credit as provided in Section 2011(f) as enacted by
2the Economic Growth and Tax Relief Reconciliation Act of 2001,
3but recognizing the increased applicable exclusion amount
4through December 31, 2005.
5    (b) For persons dying after December 31, 2005 and on or
6before December 31, 2009, and for persons dying after December
731, 2010, an amount equal to the full credit calculable under
8Section 2011 or 2604 of the Internal Revenue Code as the credit
9would have been computed and allowed under the Internal Revenue
10Code as in effect on December 31, 2001, without the reduction
11in the State Death Tax Credit as provided in Section 2011(b)(2)
12or the termination of the State Death Tax Credit as provided in
13Section 2011(f) as enacted by the Economic Growth and Tax
14Relief Reconciliation Act of 2001, but recognizing the
15exclusion amount of only (i) $2,000,000 for persons dying prior
16to January 1, 2012, (ii) $3,500,000 for persons dying on or
17after January 1, 2012 and prior to January 1, 2013, and (iii)
18$4,000,000 for persons dying on or after January 1, 2013 and
19prior to January 1, 2017, and (iv) for persons dying on or
20after January 1, 2017, the applicable exclusion amount
21calculated under Section 2010 of the Internal Revenue Code,
22including any deceased spousal unused exclusion amount
23available after a valid election is made under subparagraph (A)
24of paragraph (5) of subsection (c) of that Section, and with
25reduction to the adjusted taxable estate for any qualified
26terminable interest property election as defined in subsection

 

 

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1(b-1) of this Section.
2    (b-1) The person required to file the Illinois return may
3elect on a timely filed Illinois return a marital deduction for
4qualified terminable interest property under Section
52056(b)(7) of the Internal Revenue Code for purposes of the
6Illinois estate tax that is separate and independent of any
7qualified terminable interest property election for federal
8estate tax purposes. For purposes of the Illinois estate tax,
9the inclusion of property in the gross estate of a surviving
10spouse is the same as under Section 2044 of the Internal
11Revenue Code.
12    In the case of any trust for which a State or federal
13qualified terminable interest property election is made, the
14trustee may not retain non-income producing assets for more
15than a reasonable amount of time without the consent of the
16surviving spouse.
17    "Taxable transfer" means an event that gives rise to a
18state tax credit, including any credit as a result of the
19imposition of an additional tax under Section 2032A(c) of the
20Internal Revenue Code.
21    "Transferee" means a transferee within the meaning of
22Section 2603(a)(1) and Section 6901(h) of the Internal Revenue
23Code.
24    "Transferred property" means:
25        (1) With respect to a taxable transfer occurring at the
26    death of an individual, the deceased individual's gross

 

 

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1    estate as defined in Section 2031 of the Internal Revenue
2    Code.
3        (2) With respect to a taxable transfer occurring as a
4    result of a taxable termination as defined in Section
5    2612(a) of the Internal Revenue Code, the taxable amount
6    determined under Section 2622(a) of the Internal Revenue
7    Code.
8        (3) With respect to a taxable transfer occurring as a
9    result of a taxable distribution as defined in Section
10    2612(b) of the Internal Revenue Code, the taxable amount
11    determined under Section 2621(a) of the Internal Revenue
12    Code.
13        (4) With respect to an event which causes the
14    imposition of an additional estate tax under Section
15    2032A(c) of the Internal Revenue Code, the qualified real
16    property that was disposed of or which ceased to be used
17    for the qualified use, within the meaning of Section
18    2032A(c)(1) of the Internal Revenue Code.
19    "Trust" includes a trust as defined in Section 2652(b)(1)
20of the Internal Revenue Code.
21(Source: P.A. 96-789, eff. 9-8-09; 96-1496, eff. 1-13-11;
2297-636, eff. 6-1-12.)
 
23    Section 99. Effective date. This Act takes effect upon
24becoming law.