IL HB4736

Increases the Illinois estate tax exemption from $4,000,000 to $6,000,000 for estates containing qualified farm property, with annual adjustments based on the Consumer Price Index starting January 1, 2028

Allows a special use valuation for qualified farm property under Section 2032A of the Internal Revenue Code without the federal limitation on fair market value reduction

Expands the definition of "qualified heir" to include any lineal descendant of a grandparent of the decedent, their spouses, and legally adopted individuals

Permits a deceased spousal unused exemption amount to be carried over to a surviving spouse, provided the last deceased spouse died on or after January 1, 2027 and a timely election is made

Takes effect January 1, 2027