[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3773 Placed on Calendar Senate (PCS)]
Calendar No. 562
111th CONGRESS
2d Session
S. 3773
To permanently extend the 2001 and 2003 tax relief provisions and to
provide permanent AMT relief and estate tax relief, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 13, 2010
Mr. McConnell (for himself, Mr. Grassley, Mr. Kyl, Mr. McCain, Mr.
Cochran, Mr. Graham, Mr. Roberts, Mr. Cornyn, Mr. Inhofe, Mr. Ensign,
Mr. Isakson, Mr. Brownback, Mr. Enzi, Mr. Crapo, Mr. Burr, Mr. Vitter,
Mr. Wicker, Mr. Chambliss, Mr. Bond, Mrs. Hutchison, Mr. Hatch, Mr.
Bennett, Mr. Risch, and Mr. Shelby) introduced the following bill;
which was read the first time
September 14, 2010
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To permanently extend the 2001 and 2003 tax relief provisions and to
provide permanent AMT relief and estate tax relief, 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 ``Tax Hike Prevention Act of 2010''.
TITLE I--PERMANENT TAX RELIEF
SEC. 101. 2001 TAX RELIEF MADE PERMANENT.
Title IX of the Economic Growth and Tax Relief Reconciliation Act
of 2001 is repealed.
SEC. 102. 2003 TAX RELIEF MADE PERMANENT.
Section 303 of the Jobs and Growth Tax Relief Reconciliation Act of
2003 is repealed.
SEC. 103. TECHNICAL AND CONFORMING AMENDMENTS.
The Secretary of the Treasury or the Secretary's delegate shall not
later than 90 days after the date of the enactment of this Act, submit
to the Committee on Ways and Means of the House of Representatives and
the Committee on Finance of the Senate a draft of any technical and
conforming changes in the Internal Revenue Code of 1986 which are
necessary to reflect throughout such Code the purposes of the
provisions of, and amendments made by, this Act.
TITLE II--PERMANENT INDIVIDUAL AMT RELIEF
SEC. 201. PERMANENT INDIVIDUAL AMT RELIEF.
(a) Modification of Alternative Minimum Tax Exemption Amount.--
(1) In general.--Paragraph (1) of section 55(d) of the
Internal Revenue Code of 1986 (relating to exemption amount) is
amended to read as follows:
``(1) Exemption amount for taxpayers other than
corporations.--In the case of a taxpayer other than a
corporation, the term `exemption amount' means--
``(A) the dollar amount for taxable years beginning
in the calendar year as specified in the table
contained in paragraph (4)(A) in the case of--
``(i) a joint return, or
``(ii) a surviving spouse,
``(B) the dollar amount for taxable years beginning
in the calendar year as specified in the table
contained in paragraph (4)(B) in the case of an
individual who--
``(i) is not a married individual, and
``(ii) is not a surviving spouse,
``(C) 50 percent of the dollar amount applicable
under paragraph (1)(A) in the case of a married
individual who files a separate return, and
``(D) $22,500 in the case of an estate or trust.
For purposes of this paragraph, the term `surviving spouse' has
the meaning given to such term by section 2(a), and marital
status shall be determined under section 7703.''.
(2) Specified exemption amounts.--Section 55(d) of such
Code is amended by adding at the end the following new
paragraph:
``(4) Specified exemption amounts.--
``(A) Taxpayers described in paragraph (1)(A).--For
purposes of paragraph (1))(A)--
------------------------------------------------------------------------
The
``For taxable years beginning in-- exemption
amount is:
------------------------------------------------------------------------
2010....................................................... $72,450
2011....................................................... $74,450
2012....................................................... $78,250
2013....................................................... $81,450
2014....................................................... $85,050
2015....................................................... $88,650
2016....................................................... $92,650
2017....................................................... $96,550
2018....................................................... $100,950
2019....................................................... $105,150
2020....................................................... $109,950.
------------------------------------------------------------------------
``(B) Taxpayers described in paragraph (1)(B).--For
purposes of paragraph (1))(B)--
------------------------------------------------------------------------
The
``For taxable years beginning in-- exemption
amount is:
------------------------------------------------------------------------
2010....................................................... $47,450
2011....................................................... $48,450
2012....................................................... $50,350
2013....................................................... $51,950
2014....................................................... $53,750
2015....................................................... $55,550
2016....................................................... $57,550
2017....................................................... $59,500
2018....................................................... $61,700
2019....................................................... $63,800
2020....................................................... $66,200.''.
------------------------------------------------------------------------
(b) Alternative Minimum Tax Relief for Nonrefundable Credits.--
(1) In general.--Subsection (a) of section 26 of the
Internal Revenue Code of 1986 is amended to read as follows:
``(a) Limitation Based on Amount of Tax.--The aggregate amount of
credits allowed by this subpart for the taxable year shall not exceed
the sum of--
``(1) the taxpayer's regular tax liability for the taxable
year reduced by the foreign tax credit allowable under section
27(a), and
``(2) the tax imposed by section 55(a) for the taxable
year.''.
(2) Conforming amendments.--
(A) Adoption credit.--
(i) Section 23(b) of such Code is amended
by striking paragraph (4).
(ii) Section 23(c) of such Code is amended
by striking paragraphs (1) and (2) and
inserting the following:
``(1) In general.--If the credit allowable under subsection
(a) for any taxable year exceeds the limitation imposed by
section 26(a) for such taxable year reduced by the sum of the
credits allowable under this subpart (other than this section
and sections 25D and 1400C), such excess shall be carried to
the succeeding taxable year and added to the credit allowable
under subsection (a) for such taxable year.''.
(iii) Section 23(c) of such Code is amended
by redesignating paragraph (3) as paragraph
(2).
(B) Child tax credit.--
(i) Section 24(b) of such Code is amended
by striking paragraph (3).
(ii) Section 24(d)(1) of such Code is
amended--
(I) by striking ``section 26(a)(2)
or subsection (b)(3), as the case may
be,'' each place it appears in
subparagraphs (A) and (B) and inserting
``section 26(a)'', and
(II) by striking ``section 26(a)(2)
or subsection (b)(3), as the case may
be'' in the second last sentence and
inserting ``section 26(a)''.
(C) Credit for interest on certain home
mortgages.--Section 25(e)(1)(C) of such Code is amended
to read as follows:
``(C) Applicable tax limit.--For purposes of this
paragraph, the term `applicable tax limit' means the
limitation imposed by section 26(a) for the taxable
year reduced by the sum of the credits allowable under
this subpart (other than this section and sections 23,
25D, and 1400C).''.
(D) Savers' credit.--Section 25B of such Code is
amended by striking subsection (g).
(E) Residential energy efficient property.--Section
25D(c) of such Code is amended to read as follows:
``(c) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under this
subpart (other than this section), such excess shall be carried to the
succeeding taxable year and added to the credit allowable under
subsection (a) for such succeeding taxable year.''.
(F) Certain plug-in electric vehicles.--Section
30(c)(2) of such Code is amended to read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such taxable
year.''.
(G) Alternative motor vehicle credit.--Section
30B(g)(2) of such Code is amended to read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such taxable
year.''.
(H) New qualified plug-in electric vehicle
credit.--Section 30D(c)(2) of such Code is amended to
read as follows:
``(2) Personal credit.--For purposes of this title, the
credit allowed under subsection (a) for any taxable year
(determined after application of paragraph (1)) shall be
treated as a credit allowable under subpart A for such taxable
year.''.
(I) Cross references.--Section 55(c)(3) of such
Code is amended by striking ``26(a), 30C(d)(2),'' and
inserting ``30C(d)(2)''.
(J) Foreign tax credit.--Section 904 of such Code
is amended by striking subsection (i) and by
redesignating subsections (j) , (k), and (l) as
subsections (i), (j), and (k), respectively.
(K) First-time home buyer credit for the district
of columbia.--Section 1400C(d) of such Code is amended
to read as follows:
``(d) Carryforward of Unused Credit.--If the credit allowable under
subsection (a) exceeds the limitation imposed by section 26(a) for such
taxable year reduced by the sum of the credits allowable under subpart
A of part IV of subchapter A (other than this section and section 25D),
such excess shall be carried to the succeeding taxable year and added
to the credit allowable under subsection (a) for such taxable year.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2009.
TITLE III--PERMANENT ESTATE TAX RELIEF
SEC. 301. APPLICATION OF ESTATE, GENERATION-SKIPPING TRANSFER, AND GIFT
TAXES AFTER 2009.
(a) In General.--The following provisions of the Economic Growth
and Tax Relief Reconciliation Act of 2001, and the amendments made by
such provisions, are repealed on and after January 1, 2010, with
respect to decedents dying on and after such date, and on and after
January 1, 2011, with respect to gifts made and generation-skipping
transfers on and after such date:
(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.
Except in the case of an election under section 404, the Internal
Revenue Code of 1986 shall be applied as if such provisions and
amendments had never been enacted.
(b) Conforming Amendment.--Subsection (c) of section 2511 of the
Internal Revenue Code of 1986 is repealed on and after January 1, 2011,
with respect to gifts made on and after such date.
SEC. 302. TREATMENT OF UNIFIED CREDIT AND MAXIMUM ESTATE TAX RATE AFTER
2009.
(a) Restoration of Unified Credit Against Gift Tax.--Paragraph (1)
of section 2505(a) of the Internal Revenue Code of 1986 (relating to
general rule for unified credit against gift tax), after the
application of section _01, is amended by striking ``(determined as if
the applicable exclusion amount were $1,000,000)''.
(b) Exclusion Equivalent of Unified Credit Equal to $5,000,000.--
Subsection (c) of section 2010 of the Internal Revenue Code of 1986
(relating to unified credit against estate tax) is amended to read as
follows:
``(c) Applicable Credit Amount.--
``(1) In general.--For purposes of this section, the
applicable credit amount is the amount of the tentative tax
which would be determined under section 2001(c) if the amount
with respect to which such tentative tax is to be computed were
equal to the applicable exclusion amount.
``(2) Applicable exclusion amount.--
``(A) In general.--For purposes of this subsection,
the applicable exclusion amount is $5,000,000.
``(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) 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) Maximum Estate Tax Rate Equal to 35 Percent.--
(1) In general.--Subsection (c) of section 2001 of the
Internal Revenue Code of 1986 (relating to imposition and rate
of tax) is amended--
(A) by striking ``Over $500,000'' and all that
follows in the table contained in paragraph (1) and
insert the following:
``Over $500,000.............................. $79,300, plus 35 percent of the excess of such amount over
$500,000.'',
(B) by striking ``(1) In general.--'', and
(C) by striking paragraph (2).
(2) Conforming amendment.--Paragraphs (1) and (2) of
section 2102(b) of such Code are amended to read as follows:
``(1) In general.--A credit in an amount that would be
determined under section 2010 as the applicable credit amount
if the applicable exclusion amount were $60,000 shall be
allowed against the tax imposed by section 2101.
``(2) Residents of possessions of the united states.--In
the case of a decedent who is considered to be a `nonresident
not a citizen of the United States' under section 2209, the
credit allowed under this subsection shall not be less than the
proportion of the amount that would be determined under section
2010 as the applicable credit amount if the applicable
exclusion amount were $175,000 which the value of that part of
the decedent's gross estate which at the time of the decedent's
death is situated in the United States bears to the value of
the decedent's entire gross estate, wherever situated.''.
(d) Modifications of Estate and Gift Taxes to Reflect Differences
in Unified Credit Resulting From Different Tax Rates.--
(1) Estate tax.--
(A) In general.--Section 2001(b)(2) of the Internal
Revenue Code of 1986 (relating to computation of tax)
is amended by striking ``if the provisions of
subsection (c) (as in effect at the decedent's death)''
and inserting ``if the modifications described in
subsection (g)''.
(B) Modifications.--Section 2001 of such Code is
amended by adding at the end the following new
subsection:
``(g) Modifications to Gift Tax Payable to Reflect Different Tax
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or
more gifts, the rates of tax under subsection (c) in effect at the
decedent's death shall, in lieu of the rates of tax in effect at the
time of such gifts, be used both to compute--
``(1) the tax imposed by chapter 12 with respect to such
gifts, and
``(2) the credit allowed against such tax under section
2505, including in computing--
``(A) the applicable credit amount under section
2505(a)(1), and
``(B) the sum of the amounts allowed as a credit
for all preceding periods under section 2505(a)(2).
For purposes of paragraph (2)(A), the applicable credit amount
for any calendar year before 1998 is the amount which would be
determined under section 2010(c) if the applicable exclusion
amount were the dollar amount under section 6018(a)(1) for such
year.''.
(2) Gift tax.--Section 2505(a) of such Code (relating to
unified credit against gift tax) is amended by adding at the
end the following new flush sentence:
``For purposes of applying paragraph (2) for any calendar year, the
rates of tax in effect under section 2502(a)(2) for such calendar year
shall, in lieu of the rates of tax in effect for preceding calendar
periods, be used in determining the amounts allowable as a credit under
this section for all preceding calendar periods.''.
(e) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.
SEC. 303. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT OF DECEASED
SPOUSE.
(a) In General.--Section 2010(c) of the Internal Revenue Code of
1986, as amended by section 302(b), is amended by striking paragraph
(2) and inserting the following new paragraphs:
``(2) Applicable exclusion amount.--For purposes of this
subsection, the applicable exclusion amount is the sum of--
``(A) the basic exclusion amount, and
``(B) in the case of a surviving spouse, the
aggregate deceased spousal unused exclusion amount.
``(3) Basic exclusion amount.--
``(A) In general.--For purposes of this subsection,
the basic exclusion amount is $5,000,000.
``(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
``(i) such dollar amount, multiplied by
``(ii) 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.
``(4) Aggregate deceased spousal unused exclusion amount.--
For purposes of this subsection, the term `aggregate deceased
spousal unused exclusion amount' means the lesser of--
``(A) the basic exclusion amount, or
``(B) the sum of the deceased spousal unused
exclusion amounts computed with respect to each
deceased spouse of the surviving spouse.
``(5) Deceased spousal unused exclusion amount.--For
purposes of this subsection, the term `deceased spousal unused
exclusion amount' means, with respect to the surviving spouse
of any deceased spouse dying after December 31, 2009, the
excess (if any) of--
``(A) the basic exclusion amount of the deceased
spouse, over
``(B) the amount with respect to which the
tentative tax is determined under section 2001(b)(1) on
the estate of such deceased spouse.
``(6) Special rules.--
``(A) Election required.--A deceased spousal unused
exclusion amount may not be taken into account by a
surviving spouse under paragraph (5) unless the
executor of the estate of the deceased spouse files an
estate tax return on which such amount is computed and
makes an election on such return that such amount may
be so taken into account. Such election, once made,
shall be irrevocable. No election may be made under
this subparagraph if such return is filed after the
time prescribed by law (including extensions) for
filing such return.
``(B) Examination of prior returns after expiration
of period of limitations with respect to deceased
spousal unused exclusion amount.--Notwithstanding any
period of limitation in section 6501, after the time
has expired under section 6501 within which a tax may
be assessed under chapter 11 or 12 with respect to a
deceased spousal unused exclusion amount, the Secretary
may examine a return of the deceased spouse to make
determinations with respect to such amount for purposes
of carrying out this subsection.
``(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
this subsection.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 2505(a) of the Internal
Revenue Code of 1986, as amended by section 302(a), is amended
to read as follows:
``(1) the applicable credit amount in effect under section
2010(c) which would apply if the donor died as of the end of
the calendar year, reduced by''.
(2) Section 2631(c) of such Code is amended by striking
``the applicable exclusion amount'' and inserting ``the basic
exclusion amount''.
(3) Section 6018(a)(1) of such Code is amended by striking
``applicable exclusion amount'' and inserting ``basic exclusion
amount''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.
SEC. 304. SPECIAL ELECTION FOR DECEDENTS DYING IN 2010.
In the case of any decedent dying in 2010, the executor of the
estate of such decedent may elect to apply the Internal Revenue Code of
1986 without regard to the provisions of, and the amendments made by,
this title (other than this section). Such election shall be made at
such time and in such manner as the Secretary of the Treasury shall
provide.
Calendar No. 562
111th CONGRESS
2d Session
S. 3773
_______________________________________________________________________
A BILL
To permanently extend the 2001 and 2003 tax relief provisions and to
provide permanent AMT relief and estate tax relief, and for other
purposes.
_______________________________________________________________________
September 14, 2010
Read the second time and placed on the calendar