I
111th CONGRESS
1st Session
H. R. 3905
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.
Short title
This Act may be cited as the
Estate Tax Relief Act of
2009
.
Restoration of estate tax; repeal of carryover basis
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the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such provisions, are hereby repealed:
Subtitles A and E of title V.
Subsection (d), and so much of subsection (f)(3) as relates to subsection (d), of section 511.
Paragraph (2) of subsection (b), and paragraph (2) of subsection (e), of section 521.
Sunset not To apply
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.
.
Subsection (b) of
such section 901 is amended by striking , estates, gifts, and
transfers
.
Increase in unified credit against the estate tax
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. |
.
Inflation adjustment
Subsection (c) of section 2010 of such Code, as amended by subsection (a), is amended—
by striking
For purposes of this section,
and inserting the
following:
In general
For purposes of this section,
, and
by adding at the end the following new paragraph:
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—
such dollar amount, multiplied by
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.
.
Effective date
The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2008.
Coordinated reduction in maximum rate of tax with termination of deduction for State death taxes
Phasein of reduction in maximum rate
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. |
.
Conforming and technical amendments
Section
2001(c)(2)(A) of such Code is amended by striking after 2002 and before
2010
and inserting after 2008
.
Section
2001(c)(2)(A)(ii) of such Code is amended by striking subparagraph
(A)
and inserting clause (i)
.
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:
Phaseout
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.
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. |
.
Effective date
The amendments made by this section shall apply to estates of decedents dying, and gifts made, after December 31, 2008.