Prairie State Wire

The Illinois House GOP announced on X that lawmakers did not bring bipartisan estate tax reform legislation protecting family farms to a vote.

Illinois’ estate tax is one of the most stringent in the country, with an exemption threshold of only $4 million—far lower than the federal estate tax exemption, which is over $12 million. This policy disproportionately impacts family-owned farms and small businesses, where the value of the land often pushes estates over the exemption limit. As a result, families are sometimes forced to sell land or assets simply to cover estate taxes, potentially breaking up multigenerational farms and businesses.

According to WGN News, bipartisan legislation, House Bill 4600, was introduced in the Illinois General Assembly to address the estate tax issue. The bill specifically aimed at raising the exemption threshold to make it easier for family farms to survive without selling assets. Despite broad bipartisan support for this bill, it was never brought to a vote in the 2025 legislative session. The failure to pass this bill has left many Illinois farm families in a precarious position, facing the potential for forced sales of land just to pay estate taxes.

The American Farm Bureau Federation has long advocated for increasing the estate tax exemption to protect family farms from financial collapse. A 2023 study by the Farm Bureau found that more than 80% of farm assets are tied up in land, making it difficult for families to raise enough liquidity to pay estate taxes. Without reform, families are forced to sell significant portions of their land or operations, threatening the long-term viability of their farms.

The IL House GOP represents the Republican members of the Illinois House of Representatives, advocating for fiscally conservative policies and solutions that support Illinois families, small businesses, and agriculture. The caucus is committed to tax reform, reducing government regulation, and ensuring that policies benefit working people across Illinois. The IL House GOP has been a leading voice in efforts to reform estate taxes, working to protect family farms and help keep them in the hands of the next generation.