1.This Act may be cited as the
Estate Tax Relief Act of
2009
.
2.Restoration of estate
tax; repeal of carryover basis
(a)The following provisions of the Economic Growth and Tax
Relief Reconciliation Act of 2001, and the amendments made by such provisions,
are hereby repealed:
(1)Subtitles A and E
of title V.
(2)Subsection (d),
and so much of subsection (f)(3) as relates to subsection (d), of section
511.
(3)Paragraph (2) of
subsection (b), and paragraph (2) of subsection (e), of section 521.
The Internal Revenue Code of 1986
shall be applied as if such provisions and amendments had never been
enacted.(b)
(1)Subsection (a) of
section 901 of the Economic Growth and Tax Relief Reconciliation Act of 2001 is
amended by striking this Act
and all that follows and inserting
this Act (other than title V) shall not apply to taxable, plan, or
limitation years beginning after December 31, 2010.
.
(2)Subsection (b) of
such section 901 is amended by striking , estates, gifts, and
transfers
.
3.Increase in unified
credit against the estate tax
(a)The table in
subsection (c) of section 2010 of the Internal Revenue Code of 1986 (relating
to applicable credit amount) is amended to read as follows:
In the case of estates of The
applicable
decedents dying during:exclusion amount is:
2009$3,500,000
2010$3,650,000
2011$3,800,000
2012$3,950,000
2013$4,100,000
2014$4,250,000
2015$4,400,000
2016$4,550,000
2017$4,700,000
2018$4,850,000
2019 or thereafter$5,000,000.
.
(b)Subsection (c) of section 2010 of such Code, as
amended by subsection (a), is amended—
(1)by striking
For purposes of this section,
and inserting the
following:
(1)For purposes of this
section,
,
and
(2)by adding at the
end the following new paragraph:
(2)In the case of any decedent dying in a calendar year
after 2019, the $5,000,000 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, determined
by substituting 2018
for 1992
in subparagraph (B)
thereof.
If any
increase determined under the preceding sentence is not a multiple of $10,000,
such increase shall be rounded to the nearest multiple of
$10,000..
(c)The amendments made by this section shall apply to estates
of decedents dying, and gifts made, after December 31, 2008.
4.Coordinated reduction
in maximum rate of tax with termination of deduction for State death
taxes
(a)Phasein of
reduction in maximum rate
(1)The table in subparagraph (B) of section 2001(c)(2) of
the Internal Revenue Code of 1986 (relating to maximum rate) is amended to read
as follows:
In calendar year:The maximum rate
is:
200945 percent
201044 percent
201143 percent
201242 percent
201341 percent
201440 percent
201539 percent
201638 percent
201737 percent
201836 percent
2019 or thereafter35 percent.
.
(2)Conforming and
technical amendments
(A)Section
2001(c)(2)(A) of such Code is amended by striking after 2002 and before
2010
and inserting after 2008
.
(B)Section
2001(c)(2)(A)(ii) of such Code is amended by striking subparagraph
(A)
and inserting clause (i)
.
(b)Phaseout of
deduction for State death taxesSection 2058 of the Internal Revenue Code
of 1986 (relating to deduction for State death taxes) is amended by adding at
the end the following:
(c)
(1)In the case of estates of decedents dying in a calendar
year beginning after December 31, 2008, the deduction under subsection (a)
shall be equal to the applicable percentage of the amount which would (but for
this subsection) be the amount of such deduction.
(2)For purposes of paragraph (1), the applicable
percentage shall be determined in accordance with the following table:
In the case of taxes paid in calendar
year:The applicable percentage is:
2009100 percent
201090 percent
201180 percent
201270 percent
201360 percent
201450 percent
201540 percent
201630 percent
201720 percent
201810 percent
2019 or thereafter0 percent.
.
(c)The amendments made by
this section shall apply to estates of decedents dying, and gifts made, after
December 31, 2008.