To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 to restore the estate tax and repeal the carryover basis rule and to increase the estate tax unified credit to an exclusion equivalent of $3,500,000.

Amends the Internal Revenue Code to: (1) restore the tax on estates and generation-skipping transfers; (2) repeal the termination of provisions allowing a step-up in basis for property transferred by a decedent; and (3) increase the estate tax exclusion amount to $3.5 million, with an annual inflation adjustment to such amount beginning in 2007.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1574 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1574

To amend the Internal Revenue Code of 1986 and the Economic Growth and 
  Tax Relief Reconciliation Act of 2001 to restore the estate tax and 
repeal the carryover basis rule and to increase the estate tax unified 
            credit to an exclusion equivalent of $3,500,000.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 12, 2005

Mr. Moore of Kansas (for himself and Mr. Case) introduced the following 
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 and the Economic Growth and 
  Tax Relief Reconciliation Act of 2001 to restore the estate tax and 
repeal the carryover basis rule and to increase the estate tax unified 
            credit to an exclusion equivalent of $3,500,000.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RESTORATION OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

    (a) In General.--Subtitles A and E of title V of the Economic 
Growth and Tax Relief Reconciliation Act of 2001, and the amendments 
made by such subtitles, are hereby repealed; and the Internal Revenue 
Code of 1986 shall be applied as if such subtitles, 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''.
    (c) Conforming Amendments.--Subsections (d) and (e) of section 511 
of the Economic Growth and Tax Relief Reconciliation Act of 2001, and 
the amendments made by such subsections, are hereby repealed; and the 
Internal Revenue Code of 1986 shall be applied as if such subsections, 
and amendments, had never been enacted.

SEC. 2. INCREASE IN THE UNIFIED CREDIT AGAINST THE ESTATE TAX.

    (a) In General.--Subsection (c) of section 2010 of the Internal 
Revenue Code of 1986 (relating to applicable credit amount) is amended 
by striking all that follows ``the applicable exclusion amount'' and 
inserting ``. For purposes of the preceding sentence, the applicable 
exclusion amount is $3,500,000.''.
    (b) Inflation Adjustment.--Section 2010 of such Code is amended by 
redesignating subsection (d) as subsection (e) and by inserting after 
subsection (c) the following new subsection:
    ``(d) Inflation Adjustment.--In the case of any decedent dying in a 
calendar year after 2006, the dollar amount in subsection (c) shall be 
increased by an amount equal to--
            ``(1) such dollar amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year, determined by 
        substituting `2005' 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) Conforming Amendment.--Section 6018(a)(1) of such Code is 
amended by striking ``section 2010(c)'' and inserting ``section 2010''.
    (d) Effective Date.--The amendments made this section shall apply 
to estates of decedents dying, and gifts made, after December 31, 2005.
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