[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1442 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 1442

  To amend the Internal Revenue Code of 1986 to increase the unified 
credit against estate and gift taxes to the equivalent of a $5,000,000 
    exclusion and to provide an inflation adjustment of such amount.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 4, 2001

 Mr. Deutsch 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 unified 
credit against estate and gift taxes to the equivalent of a $5,000,000 
    exclusion and to provide an inflation adjustment of such amount.

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

SECTION 1. UNIFIED CREDIT INCREASED TO EQUIVALENT OF $5,000,000 
              EXCLUSION; INFLATION ADJUSTMENT OF UNIFIED CREDIT.

    (a) Increase in Unified Credit.--
            (1) In general.--Subsection (c) of section 2010 of the 
        Internal Revenue Code of 1986 (relating to applicable credit 
        amount) is amended by striking all that follows ``were the 
        applicable exclusion amount'' and inserting ``. For purposes of 
        the preceding sentence, the applicable exclusion amount is 
        $5,000,000.''
            (2) Conforming amendment.--Subparagraph (A) of section 
        2057(a)(3) of such Code is amended by striking ``$625,000'' and 
        inserting ``the excess of the applicable exclusion amount 
        (determined without regard to this paragraph) over $675,000''.
    (b) Inflation Adjustment.--Section 2010 of such Code is amended by 
redesignating subsection (d) as subsection (e) and by inserting after 
subsection (c) the following new subsection:
    ``(d) Cost-of-Living Adjustment.--In the case of any decedent 
dying, and gift made, in a calendar year after 2001, the $5,000,000 
amount set forth in subsection (c) shall be increased by an amount 
equal to--
            ``(1) $5,000,000, multiplied by
            ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2000' for `calendar year 1992' in subparagraph 
        (B) thereof.
If any amount as adjusted under the preceding sentence is not a 
multiple of $10,000, such amount shall be rounded to the nearest 
multiple of $10,000.''
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after the date of 
the enactment of this Act.
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