[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1376 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1376

To amend the Internal Revenue Code of 1986 to provide that transfers of 
 family-owned business interests shall be exempt from estate taxation.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 3, 2001

 Mr. Thompson of California (for himself, Mr. Blumenauer, Mr. Matsui, 
  Mr. Farr of California, Mr. Ose, Mr. Radanovich, and Mr. Dooley of 
 California) 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 provide that transfers of 
 family-owned business interests shall be exempt from estate taxation.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Business Preservation Act of 
2001''.

SEC. 2. UNLIMITED DEDUCTION FROM ESTATE 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 to read as follows:
    ``(a) Allowance of Deduction.--For purposes of the tax imposed by 
section 2001, in the case of an estate of a decedent to which this 
section applies, the value of the taxable estate shall be determined by 
deducting from the value of the gross estate the adjusted value of the 
qualified family-owned business interests of the decedent which are 
described in subsection (b)(2).''
    (b) Full Recapture (Without Interest) if Qualified Heir Disposes of 
Property, Etc.--
            (1) In general.--Paragraph (2) of section 2057(f) of such 
        Code is amended by striking subparagraphs (A) and (B), by 
        redesignating subparagraph (C) as subparagraph (B), and by 
        inserting after the paragraph heading the following new 
        subparagraph:
                    ``(A) In general.--The amount of the additional 
                estate tax imposed by paragraph (1) shall be equal to 
                the adjusted tax difference attributable to the 
                qualified family-owned business interest.''
            (2) Conforming amendment.--Paragraph (1) of section 2057(f) 
        of such Code is amended by striking ``within 10 years after the 
        date of the decedent's death and''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after the date of the enactment of 
this Act.
                                 <all>