[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 64 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                 H. R. 64

  To amend the Internal Revenue Code of 1986 to provide an inflation 
  adjustment for the amount of the maximum benefit under the special 
   estate tax valuation rules for certain farm, etc., real property.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 7, 1997

 Mr. Herger (for himself and Ms. Dunn) introduced the following bill; 
         which was referred to the Committee on Ways and Means

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                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to provide an inflation 
  adjustment for the amount of the maximum benefit under the special 
   estate tax valuation rules for certain farm, etc., real property.

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

SECTION 1. INFLATION ADJUSTMENT OF MAXIMUM BENEFIT UNDER SPECIAL ESTATE 
              TAX VALUATION RULES FOR CERTAIN FARM, ETC., REAL 
              PROPERTY.

    (a) In General.--Paragraph (2) of section 2032A(a) of the Internal 
Revenue Code of 1986 (relating to limitation on aggregate reduction in 
fair market value) is amended to read as follows:
            ``(2) Limitation on aggregate reduction in fair market 
        value.--
                    ``(A) In general.--The aggregate decrease in the 
                value of qualified real property taken into account for 
                purposes of this chapter which results from the 
                application of paragraph (1) with respect to any 
                decedent shall not exceed $750,000.
                    ``(B) Inflation adjustment.--In the case of estates 
                of decedents dying in a calendar year after 1996, the 
                $750,000 amount set forth in subparagraph (A) shall be 
                increased by an amount equal to--
                            ``(i) $750,000, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year by substituting `calendar year 
                        1995' for `calendar year 1992' in subparagraph 
                        (B) thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $1,000.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to estates of decedents dying after December 31, 1996.
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