[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 96 Introduced in House (IH)]







111th CONGRESS
  1st Session
                                 H. R. 96

  To amend the Internal Revenue Code of 1986 to increase the maximum 
   reduction in estate tax value for farmland and other special use 
 property, to restore and increase the estate tax deduction for family-
           owned business interests, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 6, 2009

 Mr. Conaway 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 maximum 
   reduction in estate tax value for farmland and other special use 
 property, to restore and increase the estate tax deduction for family-
           owned business interests, and for other purposes.

    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 ``Save Family-Owned Farms and Small 
Businesses Act of 2009''.

SEC. 2. INCREASE IN MAXIMUM REDUCTION IN ESTATE TAX VALUE FOR FARMLAND 
              AND OTHER SPECIAL USE PROPERTY UNDER 2032A.

    (a) In General.--Subsection (a) of section 2032A of the Internal 
Revenue Code of 1986 (relating to valuation of certain farm, etc., real 
property) is amended--
            (1) by striking ``$750,000'' each place it appears and 
        inserting ``$1,850,000'',
            (2) by striking ``after 1998'' in paragraph (3) and 
        inserting ``after 2010'', and
            (3) by striking ``1997'' in paragraph (3)(B) and inserting 
        ``2009''.
    (b) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after December 31, 2009.

SEC. 3. RESTORATION OF, AND INCREASE IN, DEDUCTION FOR FAMILY-OWNED 
              BUSINESS INTERESTS.

    (a) Restoration.--Subsection (j) of section 2057 of the Internal 
Revenue Code of 1986 (relating to termination) is amended to read as 
follows:
    ``(j) Application of Section.--This section--
            ``(1) shall not apply to estates of decedents dying after 
        December 31, 2003, and before January 1, 2010, but
            ``(2) shall apply to estates of decedents dying after 
        December 31, 2009.''.
    (b) Increase.--
            (1) In general.--Subsection (a) of section 2057 of such 
        Code is amended--
                    (A) by striking ``$675,000'' in paragraph (2) and 
                inserting ``$2,000,000'', and
                    (B) by striking paragraph (3).
            (2) Cost-of-living adjustment.--Subsection (a) of section 
        2057 of such Code is amended by adding at the end the following 
        new paragraph:
            ``(3) Cost-of-living adjustment.--In the case of any 
        decedent dying in a calendar year after 2010, the $2,000,000 
        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 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) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying after December 31, 2009.
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