[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 3098 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 3098

 To amend the Internal Revenue Code of 1986 to phase in a full estate 
           tax deduction for family-owned business interests.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2000

  Mr. Dorgan introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to phase in a full 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. PHASE-IN OF FULL ESTATE TAX DEDUCTION FOR FAMILY-OWNED 
              BUSINESS INTERESTS.

    (a) Increase in Dollar Limitation.--
            (1) In general.--Section 2057(a)(2) of the Internal Revenue 
        Code of 1986 (relating to maximum deduction) is amended by 
        striking ``$675,000'' and inserting ``the applicable amount''.
            (2) Applicable amount.--Section 2057(a) of such Code is 
        amended by adding at the end the following:
            ``(4) Applicable amount.--For purposes of this subsection, 
        the applicable amount shall be determined under the following 
        table:

``In the case of estates of         The applicable amount is--
        decedents dying after--
    December 31, 2000.............................          $2,375,000 
    December 31, 2001.............................          $4,375,000 
    December 31, 2002.............................          $6,375,000 
    December 31, 2003.............................          $8,375,000 
    December 31, 2004.............................        $9,375,000.''
            (3) Conforming amendments.--Section 2057(a)(3)(B) of such 
        Code (relating to coordination with unified credit) is 
        amended--
                    (A) by striking ``$675,000'' both places it appears 
                and inserting ``the applicable amount'', and
                    (B) by striking ``$675,000'' in the heading and 
                inserting ``applicable amount''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        2000.
    (b) Removal of Dollar Limitation.--
            (1) In general.--Section 2057(a) of the Internal Revenue 
        Code of 1986 (relating to deduction for family-owned business 
        interests), as amended by subsection (a), is amended--
                    (A) by striking paragraphs (2), (3), and (4), and
                    (B) by striking ``General Rule.--'' and all that 
                follows through ``For purposes'' and inserting 
                ``Allowance of Deduction.--For purposes''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        2005.
                                 <all>