Family Farm Preservation Act

SB 2921 & HB 4600

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.

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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