HB 1563 Summary

• Phases out Indiana's inheritance tax beginning July 1, 2013, through increasing tax credits (30% credit for deaths between July 1, 2013 and June 30, 2014, increasing to 75% for deaths between July 1, 2017 and June 30, 2018).

• Eliminates the inheritance tax entirely for property transfers by decedents whose death occurs after June 30, 2018.

• Eliminates the estate tax and generation skipping transfer tax for individuals dying after June 30, 2018.

• Phases out inheritance tax replacement payments to counties between fiscal years 2013-2018, reducing from 70% to 25% of the prior year distribution amount, with no county distributions after June 30, 2018.

• Makes technical corrections to Indiana Code IC 6-4.1, including gender-neutral language changes ("the decedent" replacing "him").