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HB 3118

ESTATE TAX-REPEAL

104th Regular Session Introduced by Blaine Wilhour

HB 3118 repeals Illinois estate and generation-skipping transfer taxes prospectively, applying only to deaths and transfers on or after the act's effective date.

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Bill Summary · HB 3118

Summary — HB 3118 (104th General Assembly): Estate Tax — Repeal

Sponsor: Rep. Blaine Wilhour
Introduced: February 18–20, 2025
Classification: Bill — Amends the Illinois Estate and Generation-Skipping Transfer Tax Act

Purpose / Intent

HB 3118 repeals the imposition of Illinois estate and generation-skipping transfer taxes prospectively. In short, the bill provides that no Illinois estate tax or Illinois generation-skipping transfer tax "shall be imposed under the Act" for persons who die on or after the effective date of the amendatory Act, and for transfers made on or after that same effective date.

Key provisions

  • Amends Sections 2, 3, and 4 of the Illinois Estate and Generation-Skipping Transfer Tax Act (35 ILCS 405).
  • Adds a clear, prospective rule that no Illinois estate tax or Illinois generation-skipping transfer tax is imposed for:
    • persons dying on or after the effective date of the amendatory Act; and
    • transfers made on or after the effective date of the amendatory Act.
  • Leaves existing statutory definitions and earlier-law provisions in place for decedents or transfers occurring before the Act’s effective date (the bill modifies the Act but applies the repeal prospectively).

Who is affected

  • Decedents and estates: Estates of individuals who die on or after the bill’s effective date would no longer be subject to Illinois estate tax.
  • Beneficiaries and heirs: Recipients of transfers on or after the effective date would not be subject to the Illinois estate or generation‑skipping transfer tax.
  • Executors, trustees, estate planning attorneys, and tax professionals: Will need to adjust filings, planning advice, and compliance expectations for Illinois estates and trusts.
  • State government / budget: Loss of revenue collected under the current estate and generation-skipping transfer tax schemes (no fiscal estimates provided in the bill text).

Fiscal and policy implications

  • The repeal would reduce state tax revenue derived from estate and generation-skipping transfer taxes. The bill does not include revenue replacement or transition provisions.
  • Does not affect federal estate or generation‑skipping transfer taxes (those remain governed by the Internal Revenue Code).
  • Estates and transfers that occurred before the effective date remain subject to existing law and taxation.

Effective date and implementation

  • The bill refers to "the effective date of the amendatory Act" but does not state a calendar date in the text provided. The repeal is therefore prospective from the Act’s statutory effective date upon enactment.
  • No transitional or administrative guidance is included in the bill text excerpt.

Legislative status / timeline (selected actions)

  • Filed: February 6, 2025 (with clerk); First reading: February 18, 2025
  • Referred to Rules Committee (initial); Referred to Ways & Means: March 20, 2025
  • Committee activity: public hearing (4/14/2025); committee substitute considered (4/14/2025, 5/01/2025); reported favorably as substituted (5/01/2025)
  • Placed on General State Calendar: May 14, 2025

Notes

  • The bill text supplied is partly truncated but the synopsis and inserted language make the core change clear: prospective elimination of Illinois estate and generation-skipping transfer taxes.
  • For specific fiscal impacts and final operative language (including the formal effective date), consult the enrolled version if/when enacted and any fiscal notes prepared by the state legislature or budget office.

Compiled from official sources — confirm details with the bill’s official record.

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