IL HB2865

Phases out the Illinois estate tax and generation-skipping transfer tax over five years, reducing the tax by 20% annually starting January 1, 2026

Tax reduction schedule: 80% of current rate in 2026, 60% in 2027, 40% in 2028, 20% in 2029, and 0% for deaths or transfers occurring on or after January 1, 2030

Repeals the Illinois Estate and Generation-Skipping Transfer Tax Act entirely on January 1, 2031

Applies to estates of persons dying and generation-skipping transfers occurring within Illinois tax jurisdiction

Takes effect immediately upon becoming law