[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2760 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 2760

  To amend the Internal Revenue Code of 1986 to establish for certain 
     employees of international organizations an estate tax credit 
              equivalent to the limited marital deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 5, 1999

 Mr. Houghton 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 establish for certain 
     employees of international organizations an estate tax credit 
              equivalent to the limited marital deduction.

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

SECTION 1. CREDIT EQUIVALENT TO LIMITED MARITAL DEDUCTION IN CASE OF 
              CERTAIN EMPLOYEES OF INTERNATIONAL ORGANIZATIONS.

    (a) In General.--Subchapter C of chapter 11 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 2210. CREDIT EQUIVALENT TO LIMITED MARITAL DEDUCTION IN CASE OF 
              CERTAIN EMPLOYEES OF INTERNATIONAL ORGANIZATIONS.

    ``(a) General Rule.--In the case of a decedent to whom this section 
applies, the tax determined under section 2001(b) or 2101(b) (whichever 
is applicable) shall be reduced by the applicable marital transfer 
credit determined under subsection (c).
    ``(b) Decedents to Whom Section Applies.--This section shall apply 
to a decedent if--
            ``(1) as of the date of the decedent's death--
                    ``(A) both the decedent and the surviving spouse of 
                the decedent were not citizens of the United States and 
                not lawful permanent residents of the United States, 
                and
                    ``(B) either the decedent or the surviving spouse 
                of the decedent was a qualified international 
                organization employee, and
            ``(2) the executor of the decedent's estate waives the 
        benefits of section 2056(d)(2).
    ``(c) Applicable Marital Transfer Credit.--
            ``(1) Estates taxable under section 2001.--
                    ``(A) In general.--If the estate of the decedent is 
                taxable under section 2001, the applicable marital 
                transfer credit is the excess of--
                            ``(i) a tentative tax computed under 
                        section 2001(c) on the sum of the marital 
                        transfer amount plus the applicable exclusion 
                        amount, over
                            ``(ii) a tentative tax computed under 
                        section 2001(c) on the applicable exclusion 
                        amount.
                If the amount of the adjusted taxable gifts of the 
                decedent exceeds the applicable exclusion amount, the 
                amount of such gifts shall be substituted for the 
                applicable exclusion amount in clauses (i) and (ii).
                    ``(B) Limitation on marital transfer amount.--The 
                amount of the marital transfer amount taken into 
                account under subparagraph (A) shall not exceed the 
                lesser of--
                            ``(i) the applicable exclusion amount, or
                            ``(ii) the excess of the sum referred to in 
                        section 2001(b)(1) over the applicable 
                        exclusion amount.
            ``(2) Estates taxable under section 2101.--If the estate of 
        the decedent is taxable under section 2101, the applicable 
        marital transfer credit shall be determined under the 
        principles of paragraph (1) with the following modifications--
                    ``(A) the amount set forth in subparagraph (B)(i) 
                shall be reduced by the deduction equivalent of the 
                section 2102 unified credit, and
                    ``(B) the deduction equivalent of the section 2102 
                unified credit shall be substituted for the applicable 
                exclusion amount each place it appears in paragraph (1) 
                other than subparagraph (B)(i).
    ``(d) Spouse Becomes Citizen.--This section shall not apply in any 
case in which paragraph (1) of section 2056(d) does not apply by reason 
of paragraph (4) of such section.
    ``(e) Other Definitions.--For purposes of this section--
            ``(1) Qualified international organization employee.--The 
        term `qualified international organization employee' means any 
        full-time employee of an international organization whose 
        principal place of employment with such organization is in the 
        United States.
            ``(2) Marital transfer amount.--The term `marital transfer 
        amount' means the amount which would have been allowable as a 
        deduction under section 2056 or 2106(a)(3) (whichever is 
        applicable) if section 2056 were applied without regard to 
        subsection (d) thereof.
            ``(3) Applicable exclusion amount.--The term `applicable 
        exclusion amount' means the applicable exclusion amount under 
        section 2010(c) for the calendar year which includes the date 
        of the decedent's death.
            ``(4) Adjusted taxable gifts.--The term `adjusted taxable 
        gifts' has the same meaning as when used in section 2001 or 
        2101, whichever is applicable.
            ``(5) Deduction equivalent of section 2102 unified 
        credit.--The term `deduction equivalent of the section 2102 
        unified credit' means, with respect to any estate taxable under 
        section 2101, the amount on which the tentative tax determined 
        under section 2001(c) would equal the unified credit allowed 
        under section 2102(c).''
    (b) Clerical Amendment.--The table of sections for subchapter C of 
chapter 11 of such Code is amended by adding at the end the following 
new item:

                              ``Sec. 2210. Credit equivalent to limited 
                                        marital deduction in case of 
                                        certain employees of 
                                        international organizations.''
    (c) Effective Date.--The amendments made by this section shall 
apply to the estates of decedents dying after the date of the enactment 
of this Act.
                                 <all>