1.Short title; table of
contents
(a)This Act may be cited
as the Tax Relief for Business Growth and Sustainability
Act of 2009
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Title I—Estate and gift tax reform
Sec. 101. Repeal of carryover basis; increased exclusion
amount; maximum 35 percent rate.
Sec. 102. Increase in deduction for family-owned
businesses.
Sec. 103. Exclusion from gross estate of value of principal
residence.
Title II—Treatment of small business stock
Sec. 201. Full exclusion from gross income of gain from
qualified small business stock.
Sec. 202. Repeal of alternative minimum tax treatment of
qualified small business stock gain as item of tax preference.
Title III—Relief for government contractors
Sec. 301. Repeal of withholding tax on government
contractors.
<enum>I</enum><header>Estate and gift
tax reform</header>
<section id="H13EF8C83DD5E44E2B04E01C982AEFD4A"><enum>101.</enum><header>Repeal of
carryover basis; increased exclusion amount; maximum
<enum-in-header>35</enum-in-header> percent rate</header>
<subsection id="HB113AE0B1D1942EBBA7245056232CA52"><enum>(a)</enum><header>EGTRRA sunset
not To apply</header><text display-inline="yes-display-inline">Section 901 of
the Economic Growth and Tax Relief Reconciliation Act of 2001 shall not apply
to title V of such Act (other than subtitles A and E, and sections 511(d) and
521(b)(2), thereof).</text>
</subsection><subsection id="H347A5EF08D6646B0BB3047E4ED516F59"><enum>(b)</enum><header>$5,000,000
applicable exclusion amount</header><text>Subsection (c) of section 2010 of the
Internal Revenue Code of 1986 is amended by striking all that follows
<quote>the applicable exclusion amount</quote> and inserting <quote>. For
purposes of the preceding sentence, the applicable exclusion amount is
$5,000,000.</quote>.</text>
</subsection><subsection id="HC9B5F4033A09455A83247E9F738FDD21"><enum>(c)</enum><header>Maximum estate
and gift tax rate 35 percent</header><text>Paragraph (1) of section 2001(c) of
such Code is amended by striking the last 7 items in the table and inserting
the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HC742938327464A02A0A4503A82C3FC35" style="OLC">
<table align-to-level="section" blank-lines-before="1" colsep="0" frame="none" line-rules="no-gen" rowsep="0" rule-weights="0.0.0.0.0.0" table-template-name="Generic: 2 text, even cols" table-type="">
<tgroup cols="2" grid-typeface="1.1" rowsep="0" thead-tbody-ldg-size="10.10.12"><colspec coldef="txt" colname="column1" colwidth="163pts" min-data-value="150"></colspec><colspec coldef="txt-no-ldr" colname="column2" colwidth="163pts" min-data-value="150"></colspec>
<tbody>
<row><entry align="left" colname="column1" leader-modify="force-ldr" stub-definition="txt-ldr" stub-hierarchy="1">Over
$500,000</entry><entry align="left" colname="column2" leader-modify="clr-ldr">$155,800, plus 35 percent of the excess of such amount
over $500,000.</entry>
</row>
</tbody>
</tgroup></table>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H4E617F814EA44CB79125798AB53455DC"><enum>(d)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to estates
of decedents dying, and gifts made, after December 31, 2010.</text>
</subsection></section><section id="H6D120F9859C74BCCBBD8A93EBA309218"><enum>102.</enum><header>Increase in
deduction for family-owned businesses</header>
<subsection id="HB0E8D3C2D4DD4A9C8F99C5579901030B"><enum>(a)</enum><header>In
general</header>
<paragraph id="HB50A788FAF774E78AF8BC7BB912AD8B9"><enum>(1)</enum><header>Increase</header><text>Paragraph
(2) of section 2057(a) of the Internal Revenue Code of 1986 is amended by
striking <quote>$675,000</quote> and inserting
<quote>$5,000,000</quote>.</text>
</paragraph><paragraph id="H9612C7254938403B9692CC8575044F06"><enum>(2)</enum><header>Allowed in
addition to applicable credit amount</header><text>Subsection (a) of section
2057 of such Code is amended by striking paragraph (3).</text>
</paragraph></subsection><subsection id="HBD169FC8E26540169B52F06D3C78761C"><enum>(b)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to estates
of decedents dying, and gifts made, after December 31, 2010.</text>
</subsection></section><section id="HCED7EF8D6B27409BA111AEDEE9B73DBC"><enum>103.</enum><header>Exclusion from
gross estate of value of principal residence</header>
<subsection id="HA22DD00C003D4367B39EA5FD807988B0"><enum>(a)</enum><header>In
general</header><text>Subchapter A of chapter 11 of the Internal Revenue Code
of 1986 is amended by adding at the end the following new section:</text>
<quoted-block id="H15DA6F10AE014C43B15D047DE3C8B1C9" style="OLC">
<section id="H18BC298461764897BF8F4AE9224C5CF7"><enum>2059.</enum><header>Principal
residence</header>
<subsection id="HD1929064F34A4CAE8FBB13E26E16FB91"><enum>(a)</enum><header>In
General</header><text>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—</text>
<paragraph id="H1651641E15E4440C9ABAFC5E178E4FBF"><enum>(1)</enum><text>such residence is
included in determining the value of the gross estate,</text>
</paragraph><paragraph id="H5B19DE7268FB4968906B3ED4A6030FCD"><enum>(2)</enum><text>such residence is
located in the United States, and</text>
</paragraph><paragraph id="H6753DDFAF75E4B0D9379DA274B301FE8"><enum>(3)</enum><text display-inline="yes-display-inline">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).</text>
</paragraph></subsection><subsection id="H856E12F81301458A9E033B665A4643F7"><enum>(b)</enum><header>Limitation</header><text display-inline="yes-display-inline">The deduction allowed by this section shall
not exceed $2,000,000.</text>
</subsection><subsection id="HEB87157A9A8149E491842BB82964BE7B"><enum>(c)</enum><header>Adjusted
Value</header><text>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).</text>
</subsection></section><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H5E35DF732ED1495283A5DB39654BC3BD"><enum>(b)</enum><header>Clerical
Amendment</header><text>The table of sections for subchapter A of chapter 11 of
such Code is amended by adding at the end the following new item:</text>
<quoted-block display-inline="no-display-inline" id="HA6CAAD16945A415995DD4281F081FD57" style="OLC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 2059. Principal
residence.</toc-entry>
</toc>
<after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H1D4BCBDBB7FF400D8695E17E8ED77CBE"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to estates
of decedents dying, and gifts made, after December 31, 2010.</text>
</subsection></section><enum>II</enum><header>Treatment of
small business stock</header>
<section id="HE4A6244C483447D5B7A2634A8DCDF832"><enum>201.</enum><header>Full exclusion
from gross income of gain from qualified small business stock</header>
<subsection id="H397D7D782FB04602B11A59220CFD1BCD"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 1202(a) of the Internal Revenue Code of 1986 is amended by striking
<quote>50 percent of</quote>.</text>
</subsection><subsection id="HA3469E77B5C648BBBF4385F737E8A388"><enum>(b)</enum><header>Effective
date</header><text>The amendment made by this section shall apply to taxable
years beginning after December 31, 2008.</text>
</subsection></section><section id="HE21B0B9D3B8E4AB3AD692D225A2ED75E"><enum>202.</enum><header>Repeal of
alternative minimum tax treatment of qualified small business stock gain as
item of tax preference</header>
<subsection id="H59528FC4A9DF450193216FB83B91A261"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (a) of
section 57 of the Internal Revenue Code of 1986 is amended by striking
paragraph (7).</text>
</subsection><subsection id="HA5559649579242B294FABFAA0C8826DF"><enum>(b)</enum><header>Conforming
amendment</header><text>Subclause (II) of section 53(d)(1)(B)(ii) of such Code
is amended by striking <quote>, (5), and (7)</quote> and inserting <quote>and
(5)</quote>.</text>
</subsection><subsection id="H360E9E24F9E041FB9EC857D4C3157336"><enum>(c)</enum><header>Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2008.</text>
</subsection></section><enum>III</enum><header>Relief for
government contractors</header>
<section id="HE73D7F40E9E74096A79C89AC6399C48C"><enum>301.</enum><header>Repeal of
withholding tax on government contractors</header><text display-inline="no-display-inline">Section 3402 of the Internal Revenue Code of
1986 is amended by striking subsection (t).</text>
</section>