IL SB3976

Amends the Illinois Estate and Generation-Skipping Transfer Tax Act to provide qualified farm property estates with an exemption of $13,610,000 (instead of a $4,000,000 exclusion amount) deducted from net estate value for calculating State Death Tax Credit purposes.

Adjusts the exemption amount annually beginning January 1, 2026 by the percentage increase in the Consumer Price Index for the preceding 12-month period, rounded to the nearest whole dollar.

Expands the definition of "qualified heir" for special use valuation purposes to include a decedent's brother, sister, uncle, aunt, niece, nephew, or first cousin in addition to those defined under Internal Revenue Code Section 2032A.

Allows special use valuation of qualified farm property without regard to limitations under the Internal Revenue Code and permits a separate Section 2032A election for Illinois estate tax purposes independent of federal elections.

Permits estates with qualified farm property to claim the deceased spousal unused exclusion amount when calculating the State Death Tax Credit, subject to specific filing requirements and election procedures.