IN HB1542

Accelerates the elimination of Indiana's inheritance tax from December 31, 2021 to December 31, 2017, meaning the tax will not apply to property transfers from decedents who die after that date

Increases the inheritance tax credit percentages during the phase-out period: 10% in 2013, 30% in 2014, 50% in 2015, 70% in 2016, and 90% in 2017 (compared to the previous slower phase-out schedule of 10% annual increases)

Phases out county inheritance tax replacement distributions by 2017, with counties receiving 90% in 2013, 70% in 2014, 50% in 2015, 30% in 2016, and 10% in 2017

Restores the inheritance tax replacement calculation method used between 1997 and 2012, based on a formula comparing average historical county inheritance tax revenue to current year collections

Maintains certain definitional provisions for purposes of the Indiana estate tax and generation-skipping transfer tax even after the inheritance tax is eliminated