Family Farm Preservation Act
In summary, the purpose of the legislation is to reform the Illinois Estate Tax and provide tax relief for Farm Families.
The legislation makes the following changes for estates that may claim the 2032a IRS agricultural special use valuation rule for Illinois Estate Tax Purposes, as provided in the legislation.
- Changes the current $4 million dollar threshold in 3 ways:
- Raise it to $6 million.
- Make it an exemption, not a threshold. Only dollars over $6 million will be taxed, as opposed to the current law where the entire estate is taxed if the threshold is breached.
- Tie the $6 million exemption to inflation.
- Portability: Allows any unused exemption amounts to be transferred to a surviving spouse.
- Updates the agricultural special-use valuation, for Illinois Estate Tax purposes, to reflect modern farm estates and farm family descendants.
IFB Fights For You
The Government Affairs & Commodities team works directly with legislators.
The IFB News & Communications team shares the latest policy and agricultural developments.
Listen to bill sponsors in their own words at https://www.farmweeknow.com/ffpa/
What does this impact look like?
What is being done?
SB 2921 and HB 4600 were introduced to the Illinois General Assembly by Sen. Dave Koehler and Rep. Sharon Chung, respectively, to address the impact of the current Illinois Estate Tax.
House Sponsors
Rep. Sharon Chung - Jay Hoffman - Norine K. Hammond - Maurice A. West, II - Harry Benton, Kevin Schmidt, Charles Meier, Stephanie A. Kifowit, Joyce Mason, Jason Bunting, Anthony DeLuca, Matt Hanson, Katie Stuart, Gregg Johnson, Dave Severin, Dave Vella, Barbara Hernandez, Michelle Mussman, Amy Elik, Patrick Windhorst, Michael Coffey, Angelica Guerrero-Cuellar and Dennis Tipsword
Senate Sponsors
Sen. David Koehler - Linda Holmes - Patrick J. Joyce - Sue Rezin - Paul Faraci, Doris Turner, Tom Bennett, Suzy Glowiak Hilton, Andrew S. Chesney, Sally J. Turner, Craig Wilcox, Terri Bryant, Win Stoller, Erica Harriss, Adriane Johnson, Cristina Castro, Napoleon Harris, III, Julie A. Morrison, Michael Halpin and Lakesia Collins
Estate Tax in the News
RFD Illinois February 1, 2024 | Spreaker
Legislation introduced to change Illinois estate tax | State | farmweeknow.com
Guest View: Legislation introduced to change Illinois estate tax – Shaw Local
Illinois estate tax bill aimed at preserving family farms (quadcitiesbusiness.com)
Illinois legislators propose Act to alleviate family farm estate tax burdens (foxillinois.com)
IFB seeks state estate tax changes, while others want to end exemptions | State | farmweeknow.com
IFB sets state priorities for spring session | State | farmweeknow.com
Halpin highlights new legislation to uplift family farmers (senatorhalpin.com)
Family Farm Preservation Act would protect future generations - Brownfield Ag News
Legislation filed to change farm estate tax – AgriNews (agrinews-pubs.com)
Family Farm Preservation Act would protect future generations - Voice Of Muscatine
New Legislation to Assist Farm Families | Prairie Communications, LLC (977wmoi.com)
Illinois legislators propose Act to alleviate family farm estate tax burdens (foxillinois.com)
Current estate tax policy burden on family farms | State | farmweeknow.com
https://vermilioncountyfirst.com/2024/02/02/the-illinois-estate-tax-code-will-change-finally-happen/
https://www.farmprogress.com/commentary/land-managers-talk-estate-tax-reform-and-herbicide-bans