I 111th CONGRESS 1st Session H. R. 2658 IN THE HOUSE OF REPRESENTATIVES June 2, 2009 Mr. Capuano 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 estate and gift tax unified credit to an exclusion equivalent of $5,000,000, to adjust such amount for inflation, to repeal the 1-year termination of the estate tax, and for other purposes.

1.

Increase in the unified credit against estate and gift tax

(a)

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.. (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, or gift made, in a calendar year after 2010, the $5,000,000 amount in subsection (c) shall be increased by an amount equal to— (1)such amount, multiplied by (2)the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting calendar year 2009 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)

Repeal of 1-year termination of the estate tax; application of EGTRRA sunset

(1)

In general

Subtitles A and E of title V of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such subtitles, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such subtitles, and amendments, had never been enacted. (2)

Conforming amendments

Sections 511(d), 511(e), and 521(b)(2) of the Economic Growth and Tax Relief Reconciliation Act of 2001, and the amendments made by such sections, are hereby repealed; and the Internal Revenue Code of 1986 shall be applied as if such sections, and amendments, had never been enacted. (3)

Application of sunset to remaining provisions

(A)

In general

Paragraph (2) of section 901(a) of the Economic Growth and Tax Relief Reconciliation Act of 2001 is amended by striking December 31, 2010 and inserting December 31, 2009. (B)

Exception

Section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply to subtitle C of title V of such Act. (d)

Effective date

The amendments made by subsections (a) and (b) shall apply to estates of decedents dying, and gifts made, after December 31, 2009.