[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3841 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 3841

 To amend the Internal Revenue Code of 1986 to repeal carryover basis 
 for decedents dying in 2009, to increase the estate tax exemption to 
 $5,000,000, and to reduce the maximum estate and gift tax rate to 45 
                                percent.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 15, 2009

 Mr. Schrader 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 repeal carryover basis 
 for decedents dying in 2009, to increase the estate tax exemption to 
 $5,000,000, and to reduce the maximum estate and gift tax rate to 45 
                                percent.

    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 ``Small Business and Family Farm 
Estate Tax Relief Act of 2009''.

SEC. 2. RETENTION OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

    (a) 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made by such subtitles, are hereby repealed; and the Internal Revenue 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.
    (b) Sunset Not To Apply.--Section 901 of the Economic Growth and 
Tax Relief Reconciliation Act of 2001 shall not apply to title V of 
such Act.
    (c) Conforming Amendments.--Subsections (d) and (e) of section 511 
of the Economic Growth and Tax Relief Reconciliation Act of 2001, and 
the amendments made by such subsections, are hereby repealed; and the 
Internal Revenue Code of 1986 shall be applied as if such subsections, 
and amendments, had never been enacted.

SEC. 3. MODIFICATIONS TO ESTATE AND GIFT TAX.

    (a) $5,000,000 Applicable Exclusion Amount.--Subsection (c) of 
section 2010 of the Internal Revenue Code of 1986 (relating to 
applicable credit amount) is amended by striking all that follows ``the 
applicable exclusion amount'' and inserting ``. For purposes of the 
preceding sentence, the applicable exclusion amount is $5,000,000.''.
    (b) Freeze Maximum Estate and Gift Tax Rates at 45 Percent.--
Paragraph (1) of section 2001(c) of such Code is amended by striking 
the last 3 items in the table and inserting the following new item:


``Over $1,500,000............................  $555,800, plus 45 percent of the excess of such amount over
                                                $1,500,000.''.
 

    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after December 31, 
2009.
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