Wanting to ensure family farms can be passed from one generation to the next without unreasonable tax burdens, state Rep. Anthony DeLuca, is backing an overhaul of the state’s estate tax specific to farms.
“When a loved one passes, we don’t want state taxes to force families to sell land, lose equipment, and break up a farm,” DeLuca said. “This is too often the reality with the current tax structure, which is irresponsible and overdue to change. I’m proud to join a bipartisan effort supported by the Illinois Farm Bureau that will not only address this issue now but moving forward, as well.”
The DeLuca-sponsored House Bill 4600, dubbed the “Family Farm Preservation Act,” would apply only to farm estates and would implement a $6 million true exemption. Only value more than the $6 million exemption would be taxed, and the exemption rate moving forward would be connected with annual increases tied to inflation. Additionally, unused exemption amounts would be transferred to a surviving spouse under the proposal. House Bill 4600 and the identical Senate Bill 2921 have received bipartisan support from members of every caucus.
“Our state’s family farmers are an essential part of Illinois’ economy and heritage,” DeLuca said. “We should be doing what we can to strengthen and support our agriculture industry for this generation and the next. This measure would be a great step forward.”