[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 324 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 324

  To amend the Internal Revenue Code of 1986 to increase the unified 
 estate and gift tax credit to an exemption equivalent of $1,200,000, 
      and to provide a cost-of-living adjustment for such amount.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 Mr. Solomon 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 unified 
 estate and gift tax credit to an exemption equivalent of $1,200,000, 
      and to provide a cost-of-living adjustment for such amount.

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

SECTION 1. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDIT.

    (a) In General.--
            (1) Subsection (a) of section 2010 of the Internal Revenue 
        Code of 1986 (relating to unified credit against estate tax) is 
        amended by striking ``$192,800'' and inserting ``the applicable 
        credit amount''.
            (2) Section 2010 of such Code is amended by redesignating 
        subsection (c) as subsection (d) and by inserting after 
        subsection (b) the following new subsection:
    ``(c) Applicable Credit Amount.--
            ``(1) In general.--The applicable credit amount is the 
        amount of the tentative tax which would be determined under the 
        rate schedule set forth in section 2001(c) if the amount with 
        respect to which such tentative tax is to be computed were 
        $1,200,000.
            ``(2) Cost-of-living adjustments.--In the case of any 
        decedent dying, and gift made, in a calendar year after 1998, 
        the $1,200,000 amount set forth in paragraph (1) shall be 
        increased by an amount equal to--
                    ``(A) $1,200,000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year by 
                substituting `calendar year 1997' 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.''
            (3) Paragraph (1) of section 6018(a) of such Code is 
        amended by striking ``$600,000'' and inserting ``the applicable 
        exclusion amount in effect under section 2010(c) (as adjusted 
        under paragraph (2) thereof) for the calendar year which 
        includes the date of death''.
            (4) Paragraph (2) of section 2001(c) of such Code is 
        amended by striking ``$21,040,000'' and inserting ``the amount 
        at which the average tax rate under this section is 55 
        percent''.
            (5) Subparagraph (A) of section 2102(c)(3) of such Code is 
        amended by striking ``$192,800'' and inserting ``the applicable 
        credit amount in effect under section 2010(c) for the calendar 
        year which includes the date of death''.
    (b) Unified Gift Tax Credit.--Paragraph (1) of section 2505(a) of 
such Code is amended by striking ``$192,800'' and inserting ``the 
applicable credit amount in effect under section 2010(c) for such 
calendar year''.
    (c) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying, and gifts made, after December 
31, 1997.
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