HR 3905 IH
111th CONGRESS
1st Session
H. R. 3905
To amend the Internal Revenue Code of 1986 to repeal the 1-year termination of the estate tax, to increase the estate and gift tax unified credit, and to coordinate a reduction in the maximum rate of tax with a phaseout of the deduction for State death taxes.
IN THE HOUSE OF REPRESENTATIVES
October 22, 2009
Ms. BERKLEY (for herself, Mr. BRADY of Texas, Mr. DAVIS of Alabama, and Mr. NUNES) introduced the following bill; which was referred to the Committee on Ways and Means
A BILL
To amend the Internal Revenue Code of 1986 to repeal the 1-year termination of the estate tax, to increase the estate and gift tax unified credit, and to coordinate a reduction in the maximum rate of tax with a phaseout of the deduction for State death taxes.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
SEC. 2. RESTORATION OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.
(a) In General- The following provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such provisions, are hereby repealed:
(1) Subtitles A and E of title V.
(2) Subsection (d), and so much of subsection (f)(3) as relates to subsection (d), of section 511.
(3) Paragraph (2) of subsection (b), and paragraph (2) of subsection (e), of section 521.
The Internal Revenue Code of 1986 shall be applied as if such provisions and amendments had never been enacted.
(b) Sunset Not To Apply-
(1) Subsection (a) of section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking ‘this Act’ and all that follows and inserting ‘this Act (other than title V) shall not apply to taxable, plan, or limitation years beginning after December 31, 2010.’.
(2) Subsection (b) of such section 901 is amended by striking ‘, estates, gifts, and transfers’.
SEC. 3. INCREASE IN UNIFIED CREDIT AGAINST THE ESTATE TAX.
(a) In General- The table in subsection (c) of section 2010 of the Internal Revenue Code of 1986 (relating to applicable credit amount) is amended to read as follows:
‘In the case of estates of
The applicable
decedents dying during:
exclusion amount is:
2009
--$3,500,000
2010
--$3,650,000
2011
--$3,800,000
2012
--$3,950,000
2013
--$4,100,000
2014
--$4,250,000
2015
--$4,400,000
2016
--$4,550,000
2017
--$4,700,000
2018
--$4,850,000
2019 or thereafter
--$5,000,000.’.
(b) Inflation Adjustment- Subsection (c) of section 2010 of such Code, as amended by subsection (a), is amended--
(1) by striking ‘For purposes of this section,’ and inserting the following:
‘(1) IN GENERAL- For purposes of this section,’, and
(2) by adding at the end the following new paragraph:
‘(2) INFLATION ADJUSTMENT- In the case of any decedent dying in a calendar year after 2019, the $5,000,000 amount in paragraph (1) shall be increased by an amount equal to--
‘(A) such dollar amount, multiplied by
‘(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year, determined by substituting ‘2018’ for ‘1992’ in subparagraph (B) thereof.
If any increase determined under the preceding sentence is not a multiple of $10,000, such increase shall be rounded to the nearest multiple of $10,000.’.
(c) Effective Date- The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2008.
SEC. 4. COORDINATED REDUCTION IN MAXIMUM RATE OF TAX WITH TERMINATION OF DEDUCTION FOR STATE DEATH TAXES.
(a) Phasein of Reduction in Maximum Rate-
(1) IN GENERAL- The table in subparagraph (B) of section 2001(c)(2) of the Internal Revenue Code of 1986 (relating to maximum rate) is amended to read as follows:
‘In calendar year:
The maximum rate is:
2009
--45 percent
2010
--44 percent
2011
--43 percent
2012
--42 percent
2013
--41 percent
2014
--40 percent
2015
--39 percent
2016
--38 percent
2017
--37 percent
2018
--36 percent
2019 or thereafter
--35 percent.’.
(2) CONFORMING AND TECHNICAL AMENDMENTS-
(A) Section 2001(c)(2)(A) of such Code is amended by striking ‘after 2002 and before 2010’ and inserting ‘after 2008’.
(B) Section 2001(c)(2)(A)(ii) of such Code is amended by striking ‘subparagraph (A)’ and inserting ‘clause (i)’.
(b) Phaseout of Deduction for State Death Taxes- Section 2058 of the Internal Revenue Code of 1986 (relating to deduction for State death taxes) is amended by adding at the end the following:
‘(c) Phaseout-
‘(1) IN GENERAL- In the case of estates of decedents dying in a calendar year beginning after December 31, 2008, the deduction under subsection (a) shall be equal to the applicable percentage of the amount which would (but for this subsection) be the amount of such deduction.
‘(2) APPLICABLE PERCENTAGE- For purposes of paragraph (1), the applicable percentage shall be determined in accordance with the following table:
‘In the case of taxes paid in calendar year:
The applicable percentage is:
2009
--100 percent
2010
--90 percent
2011
--80 percent
2012
--70 percent
2013
--60 percent
2014
--50 percent
2015
--40 percent
2016
--30 percent
2017
--20 percent
2018
--10 percent
2019 or thereafter
--0 percent.’.
(c) Effective Date- The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2008.
U.S. Congress - Text of H.R.3905 as Introduced in House Estate Tax Relief Act of 2009
