[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4562 Introduced in House (IH)]







106th CONGRESS
  2d Session
                                H. R. 4562

  To amend the Internal Revenue Code of 1986 to increase the maximum 
       estate tax deduction for family-owned business interests.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 25, 2000

 Mr. Etheridge (for himself and Mrs. Clayton) 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 maximum 
       estate tax deduction for family-owned business interests.

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

SECTION 1. INCREASE IN ESTATE TAX DEDUCTION FOR FAMILY-OWNED BUSINESS 
              INTERESTS.

    (a) In General.--Subsection (a) of section 2057 of the Internal 
Revenue Code of 1986 (relating to family-owned business interests) is 
amended by striking paragraphs (2) and (3) and by inserting after 
paragraph (1) the following new paragraphs:
            ``(2) Maximum deduction.--
                    ``(A) In general.--The deduction allowed by this 
                section shall not exceed the limitation determined in 
                accordance with the following table:

                In the case of decedents
                  dying during:
                                                     The limitation is:
                  2001...............................       $2,000,000 
                  2002...............................       $2,500,000 
                  2003...............................       $3,000,000 
                  2004...............................       $3,500,000 
                  2005 or thereafter.................       $4,000,000.

                    ``(B) Inflation adjustment of limitation.--In the 
                case of decedents dying in a calendar year after 2005, 
                the $4,000,000 amount in subparagraph (A) shall be 
                increased by an amount equal to the product of--
                            ``(i) $4,000,000, and
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for such 
                        calendar year, determined by substituting 
                        `2004' 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.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to estates of decedents dying after December 31, 2000.
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