110 HR 4042 IH: Family Farm, Small Business, and Home Tax Relief
U.S. House of Representatives
2007-11-01
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EN
Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
1.
(a)This Act may be cited as the Family Farm, Small Business, and Home Tax Relief
Act
.
(b)Except as otherwise
expressly provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision, the
reference shall be considered to be made to a section or other provision of the
Internal Revenue Code of 1986.
2.Acceleration of
increase in unified credit
(a)Subsection (c) of
section 2010 (relating to unified credit against tax) is amended to read as
follows:
(c)
(1)For purposes of this section, the applicable credit
amount is the amount of the tentative tax which would be determined under the
rate schedule set forth in section 2001(c) if the amount with respect to which
such tentative tax is to be computed were the applicable exclusion amount. For
purposes of the preceding sentence, the applicable exclusion amount is
$3,500,000.
(2)Cost-of-living
adjustmentIn the case of any
decedent dying in a calendar year after 2008, the $3,500,000 amount in
paragraph (1) shall be increased by an amount equal to—
(A)such dollar
amount, multiplied by
(B)the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by substituting calendar
year 2006
for calendar year 1992
in subparagraph (B)
thereof.
If any
amount as adjusted under the preceding sentence is not a multiple of $1,000,
such amount shall be rounded to the nearest multiple of
$1,000..
(b)The amendment made by
this section shall apply to estates of decedents dying, and gifts made, after
December 31, 2007.
3.Acceleration of
reduction in maximum estate tax rate
(a)
(1)The table
contained in paragraph (1) of section 2001(c) is amended by striking the 2
highest brackets.
(2)Section 2001(c),
as amended by paragraph (1), is amended by striking (1)
In
general.—
and by striking paragraph (2).
(b)The amendments made by
this section shall apply to estates of decedents dying, and gifts made, after
December 31, 2007.
4.Restoration of, and
increase in, deduction for family-owned business interests
(a)Subsection
(j) of section 2057 (relating to termination) is amended to read as
follows:
(j)This section—
(1)shall not apply to
estates of decedents dying after December 31, 2003, and before January 1, 2008,
but
(2)shall apply to
estates of decedents dying after December 31,
2007.
.
(b)
(1)Subsection (a) of section 2057 is amended—
(A)by striking
$675,000
in paragraph (2) and inserting
$8,000,000
, and
(B)by striking
paragraph (3).
(2)Cost-of-living
adjustmentSubsection (a) of
section 2057 is amended by adding at the end the following new
paragraph:
(3)Cost-of-living
adjustmentIn the case of any
decedent dying in a calendar year after 2008, the $8,000,000 amount in
paragraph (2) shall be increased by an amount equal to—
(A)such dollar
amount, multiplied by
(B)the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by substituting calendar
year 2006
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)The amendments made by this section shall apply to estates
of decedents dying after December 31, 2007.
5.Acceleration of repeal
of tax on generation-skipping transfersSection 2664 (relating to termination) is
amended by striking December 31, 2009
and inserting
December 31, 2007
.
6.Exclusion from
gross estate of value of principal residence
(a)Subchapter A of chapter 11 is amended by adding at the
end the following new section:
2059.
(a)For purposes of the
tax imposed by section 2001, in the case of a decedent who was (at the date of
the decedent’s death) a citizen or resident of the United States, the value of
the taxable estate shall be determined by deducting from the value of the gross
estate the adjusted value of any residence if—
(1)such residence is
included in determining the value of the gross estate,
(2)such residence is
located in the United States, and
(3)during the 8-year
period ending on the date of the decedent’s death, there have been periods
aggregating 5 years during which such residence was owned by the decedent or a
member of the decedent's family and used by the decedent or such a member as
their principal residence (within the meaning of section 121).
(b)
(1)The deduction allowed by this section shall not exceed
$2,000,000.
(2)Cost-of-living
adjustmentIn the case of any
decedent dying in a calendar year after 2008, the $2,000,000 amount in
paragraph (1) shall be increased by an amount equal to—
(A)such dollar
amount, multiplied by
(B)the cost-of-living adjustment determined
under section 1(f)(3) for such calendar year by substituting calendar
year 2006
for calendar year 1992
in subparagraph (B)
thereof.
If any
amount as adjusted under the preceding sentence is not a multiple of $1,000,
such amount shall be rounded to the nearest multiple of $1,000.(c)For purposes of this section, the adjusted value of
property is the value of such property for purposes of this chapter, reduced by
amounts allowable as a deduction in respect to such property under paragraph
(4) of section 2053(a).
(d)Qualified heir;
member of the familyFor purposes of this section, the terms
qualified heir and member of the family have the
respective meanings given to such terms by section 2032A(e).
.
(b)The table of sections for subchapter A of chapter 11 is
amended by adding at the end the following new item:
Sec. 2059. Principal
residence.
.
(c)The amendments made by this section shall apply to estates
of decedents dying after December 31, 2007.