To amend the Internal Revenue Code of 1986 to increase the estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-year termination of the estate tax, and for other purposes.

Amends the Internal Revenue Code to increase the unified credit against the estate and gift tax to $5 million after 2009 and to adjust such amount for inflation for estates opened after 2010.

Restores previous estate tax and carryover basis provisions temporarily repealed by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). Modifies the general termination date of such Act (i.e., December 31, 2010) as it applies to certain EGTRRA estate and gift tax provisions.

[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3475 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3475

 To amend the Internal Revenue Code of 1986 to increase the estate and 
 gift tax unified credit to an exclusion equivalent of $5,000,000, to 
 adjust such amount for inflation, to repeal the 1-year termination of 
                the estate tax, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 5, 2007

 Mr. Capuano 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 increase the estate and 
 gift tax unified credit to an exclusion equivalent of $5,000,000, to 
 adjust such amount for inflation, to repeal the 1-year termination of 
                the estate tax, and for other purposes.

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

SECTION 1. INCREASE IN THE UNIFIED CREDIT AGAINST ESTATE AND GIFT 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 ``were the applicable exclusion amount'' 
and inserting ``. For purposes of the preceding sentence, the 
applicable exclusion amount is $5,000,000.''.
    (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) Cost-of-Living Adjustment.--In the case of any decedent 
dying, or gift made, in a calendar year after 2010, the $5,000,000 
amount in subsection (c) shall be increased by an amount equal to--
            ``(1) such amount, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2009' for `calendar year 1992' in subparagraph 
        (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $10,000, such amount shall be rounded to the nearest 
multiple of $10,000.''.
    (c) Repeal of 1-Year Termination of the Estate Tax; Application of 
EGTRRA Sunset.--
            (1) 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.
            (2) Conforming amendments.--Sections 511(d), 511(e), and 
        521(b)(2) of the Economic Growth and Tax Relief Reconciliation 
        Act of 2001, and the amendments made by such sections, are 
        hereby repealed; and the Internal Revenue Code of 1986 shall be 
        applied as if such sections, and amendments, had never been 
        enacted.
            (3) Application of sunset to remaining provisions.--
                    (A) In general.--Paragraph (2) of section 901(a) of 
                the Economic Growth and Tax Relief Reconciliation Act 
                of 2001 is amended by striking ``December 31, 2010'' 
                and inserting ``December 31, 2009''.
                    (B) Exception.--Section 901 of the Economic Growth 
                and Tax Relief Reconciliation Act of 2001 shall not 
                apply to subtitle C of title V of such Act.
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply to estates of decedents dying, and gifts made, after 
December 31, 2009.
                                 <all>