1.
(a)This Act may be cited
as the Taxpayer Certainty and Relief
Act of 2009
.
(b)Except as otherwise expressly provided, whenever in
this Act an amendment or repeal is expressed in terms of an amendment to, or
repeal of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
(c)The table of contents of this Act is as follows:
Sec. 1. Short title,
etc.
TITLE I—Permanent alternative minimum tax relief
Sec. 101. Exemption amounts made permanent.
Sec. 102. Exemption amounts indexed for inflation.
Sec. 103. Alternative minimum tax relief for nonrefundable
credits.
TITLE II—Permanent middle class tax relief
Sec. 201. Permanent reduction in tax rates for lower-income and
middle-income individuals.
Sec. 202. Permanent reduction in rates on capital gains for
lower-income and middle-income taxpayers.
Sec. 203. Modifications to child tax credit.
Sec. 204. Repeal of sunset on marriage penalty
relief.
Sec. 205. Repeal of sunset on expansion of dependent care
credit.
Sec. 206. Repeal of sunset on expansion of adoption credit and
adoption assistance programs.
Sec. 207. Expansion of earned income tax credit.
TITLE III—Permanent estate tax relief
Sec. 301. Permanent extension of estate tax as in effect in
2009.
Sec. 302. Unified credit increased by unused unified credit of
deceased spouse.
<enum>I</enum><header>Permanent
alternative minimum tax relief</header>
<section id="H8068D81F3345490C9D196DE638C48EF5"><enum>101.</enum><header>Exemption
amounts made permanent</header>
<subsection id="H05DEBC32918D425B896FCD2E00FB9B45"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Paragraph (1) of
section 55(d) is amended—</text>
<paragraph id="H116D215506E440D893C3EAFD6BB7D8FC"><enum>(1)</enum><text>by striking
<quote>$45,000 ($70,950 in the case of taxable years beginning in 2009)</quote>
in subparagraph (A) and inserting <quote>$70,950 in the case of</quote>,</text>
</paragraph><paragraph id="H2A26645A0CD24C35B0B8F0A29FA4D4C0"><enum>(2)</enum><text>by striking
<quote>$33,750 ($46,700 in the case of taxable years beginning in 2009)</quote>
in subparagraph (B) and inserting <quote>$46,700 in the case of an individual
who</quote>, and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="HF27CE588E6524280BF61361E09E1AF98"><enum>(3)</enum><text>by striking
<quote>paragraph (1)(A)</quote> in subparagraph (C) and inserting
<quote>subparagraph (A)</quote>.</text>
</paragraph></subsection><subsection id="id4C57D87665144B83B8FD676B878ED9B5"><enum>(b)</enum><header>Repeal of
EGTRRA sunset</header><text>Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall
not apply to section 701 of such Act (relating to increase in alternative
minimum tax exemption).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idC56F0F7543FC40398B3223E7F081D60E"><enum>(c)</enum><header display-inline="yes-display-inline">Effective
date</header><text display-inline="yes-display-inline">The amendments made by
this section shall apply to taxable years beginning after December 31,
2009.</text>
</subsection></section><section id="idE867E2521E7A4341B0E53B33C316DDCD"><enum>102.</enum><header>Exemption
amounts indexed for inflation</header>
<subsection id="H04A3D6AFF80B40FDB01D3BAC46D7AE1"><enum>(a)</enum><header>In
general</header><text display-inline="yes-display-inline">Subsection (d) of
section 55 is amended by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="HA51C36D3F0CD4770AB1201384017D286" style="OLC">
<paragraph id="H7C6AC05CAC514192BF0000B5DAB4DAD6"><enum>(4)</enum><header>Inflation
adjustment</header>
<subparagraph id="HF2C96BC2C5F14E0E8BC75FF276DE12AC"><enum>(A)</enum><header>In
general</header><text display-inline="yes-display-inline">In the case of any
taxable year beginning in a calendar year after 2009, each of the dollar
amounts contained in subsection (b)(1)(A)(i) and paragraphs (1)(A), (1)(B),
(1)(D), (3)(A), and (3)(B) of this subsection shall be increased by an amount
equal to—</text>
<clause id="H964D02F2841B4064A0289F225C1F144B"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause id="HEE63EFB09926481A8E77067B86005949"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for the calendar
year in which the taxable year begins, determined by substituting
<quote>calendar year 2008</quote> for <quote>calendar year 1992</quote> in
subparagraph (B) thereof.</text>
</clause></subparagraph><subparagraph id="HD0416FD656B64011A8E8D73B15C15949"><enum>(B)</enum><header>Rounding</header><text>Any
increase determined under subparagraph (A) shall be rounded to the nearest
multiple of
$100.</text>
</subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id9C0E693472B748E8A60E84DCCB7FFEEC"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="id6F94E9256682443BB013FD5DDC0C2944"><enum>(1)</enum><text>Clause (iii) of
section 55(b)(1)(A) is amended by striking <quote>by substituting</quote> and
all that follows through <quote>appears.</quote> and inserting <quote>by
substituting 50 percent of the dollar amount otherwise applicable under
subclause (I) and subclause (II) thereof</quote>.</text>
</paragraph><paragraph id="id60660AC939BE4AA1AD3CEFAE939F3E8B"><enum>(2)</enum><text>Paragraph (3) of
section 55(d) is amended—</text>
<subparagraph id="id3536D540FDCB4F87A6A555153C3687E9"><enum>(A)</enum><text>by striking
<quote>or (2)</quote> in subparagraph (A),</text>
</subparagraph><subparagraph id="id1278EA4EA28549838E11CCA15224CA3D"><enum>(B)</enum><text>by striking
<quote>and</quote> at the end of subparagraph (B), and</text>
</subparagraph><subparagraph id="idC80E656AE29D416BB5029DEC648F05F1"><enum>(C)</enum><text>by striking
subparagraph (C) and inserting the following new subparagraphs:</text>
<quoted-block display-inline="no-display-inline" id="idF30D272F372E4F9BA173D63999EF124F" style="OLC">
<subparagraph id="id28D7E848015149D8853F0C591D4C9103"><enum>(C)</enum><text>50 percent of the
dollar amount applicable under subparagraph (A) in the case of a taxpayer
described in subparagraph (C) or (D) of paragraph (1), and</text>
</subparagraph><subparagraph id="idEFD8CB105D544492B9B9DC77BCAACFD7"><enum>(D)</enum><text>$150,000 in the
case of a taxpayer described in paragraph
(2).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H3FD46246BABA4CDC9651EF44440090E4"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><section commented="no" display-inline="no-display-inline" id="idCF9BEC40BA0846C09BEBBCD8400BA727"><enum>103.</enum><header>Alternative
minimum tax relief for nonrefundable credits</header>
<subsection commented="no" display-inline="no-display-inline" id="id452C860ED0974DCF97348E1D21419F40"><enum>(a)</enum><header>In
general</header><text>Subsection (a) of section 26 is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id09E9CDBD4DF14729982BF547DB2E1964" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id1A09B355D4044DD0ADB90EC72610C2C9"><enum>(a)</enum><header>Limitation
based on amount of tax</header><text>The aggregate amount of credits allowed by
this subpart for the taxable year shall not exceed the sum of—</text>
<paragraph id="IDb2a8530707b747c6b856f5f3130dcbf8"><enum>(1)</enum><text>the taxpayer's
regular tax liability for the taxable year reduced by the foreign tax credit
allowable under section 27(a), and</text>
</paragraph><paragraph id="ID051040f261d847bc9c2ffc3b5dbd239f"><enum>(2)</enum><text>the tax imposed
by section 55(a) for the taxable
year.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id89C3ADA275ED46DABF86B39CAC275635"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph commented="no" display-inline="no-display-inline" id="id73138EE0740B4A55B85614952C95EE11"><enum>(1)</enum><header>Adoption
credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id41C1863B66154A42864C1B3C992D2620"><enum>(A)</enum><text>Section 23(b) is
amended by striking paragraph (4).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id7E1953660A9341E99D9A60B051538C0F"><enum>(B)</enum><text>Section 23(c) is
amended by striking paragraphs (1) and (2) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id66DD68635BF84D0D83D305C610BC6B70" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id6BC49A2C844A4AE8AD7971A84118ADC2"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC0F1A4AC5C9B41C591A1DE217BDEBABD"><enum>(C)</enum><text>Section 23(c) is
amended by redesignating paragraph (3) as paragraph (2).</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBDE009A3932B49C7AF923B55077D48F3"><enum>(2)</enum><header>Child tax
credit</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id661553081055451FA3AFF9BA144FA883"><enum>(A)</enum><text>Section 24(b) is
amended by striking paragraph (3).</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idF92EB1CD23614DCEAD5AE268E2E30F22"><enum>(B)</enum><text>Section 24(d)(1)
is amended—</text>
<clause commented="no" display-inline="no-display-inline" id="idCC48C5BD99DE48CFB3B4F2C990C66838"><enum>(i)</enum><text>by striking
<quote>section 26(a)(2) or subsection (b)(3), as the case may be,</quote> each
place it appears in subparagraphs (A) and (B) and inserting <quote>section
26(a)</quote>, and</text>
</clause><clause commented="no" display-inline="no-display-inline" id="idCD78A8C238494C3DBB30A95B53C4BFA3"><enum>(ii)</enum><text>by striking
<quote>section 26(a)(2) or subsection (b)(3), as the case may be</quote> in the
second last sentence and inserting <quote>section 26(a)</quote>.</text>
</clause></subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBA343BF7605B46CEA708ADDF38DD064D"><enum>(3)</enum><header>Credit for
interest on certain home mortgages</header><text>Section 25(e)(1)(C) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC0C4F0DDD863470096E134DDFCBB638C" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="id50188A0D4B824E92B9A2A2B3E5216427"><enum>(C)</enum><header>Applicable tax
limit</header><text>For purposes of this paragraph, the term <quote>applicable
tax limit</quote> 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).</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idADF4C479CB5E4E2AAE4480A684DFD25C"><enum>(4)</enum><header>Savers'
credit</header><text>Section 25B is amended by striking subsection (g).</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2022BE4CF3244635A00481804BC7C53D"><enum>(5)</enum><header>Residential
energy efficient property</header><text>Section 25D(c) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id9D1BFFE9F99941E6A742EDDF37606A1F" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id0CAF65B794B74A549FAFC1D85DC827F3"><enum>(c)</enum><header>Carryforward of
unused credit</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id4159B053FF424B31A0225209F733B44C"><enum>(6)</enum><header>Certain plug-in
electric vehicles</header><text>Section 30(c)(2) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idF527CC26E9D440739FEB2455528E3583" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id23B53472C6FF4CB7B46E47E02D1DE939"><enum>(2)</enum><header>Personal
credit</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id390FA8313FCD4CEFA95570FAAB2C56F0"><enum>(7)</enum><header>Alternative
motor vehicle credit</header><text>Section 30B(g)(2) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id1A2A8871177F414696CEDD23BE4E598B" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idBFFD545EDD214E4AAEFC1A2AEDECBDC0"><enum>(2)</enum><header>Personal
credit</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id0FA9ABCC036949CAB5E2FB06EA57C6A7"><enum>(8)</enum><header>New qualified
plug-in electric vehicle credit</header><text>Section 30D(c)(2) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id4B9374434D1546619795FA022EF8FE9E" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="idF199DC96809F48C6BAD4AEB4E93D8EB6"><enum>(2)</enum><header>Personal
credit</header><text>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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id9F80C780F1E1407F9D5BA4B62092E31D"><enum>(9)</enum><header>Cross
references</header><text>Section 55(c)(3) is amended by striking <quote>26(a),
30C(d)(2),</quote> and inserting <quote>30C(d)(2)</quote>.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idCC46F3A33A46431493BAEBACA9F0E3B3"><enum>(10)</enum><header>Foreign tax
credit</header><text>Section 904 is amended by striking subsection (i) and by
redesignating subsections (j) , (k), and (l) as subsections (i), (j), and (k),
respectively.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idB4860E1CBCC64705B3AB80D9767C71B4"><enum>(11)</enum><header>First-time
home buyer credit for the District of Columbia</header><text>Section 1400C(d)
is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id5B4DCEA83A3840849DF57FB803105DED" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="idEEB4A96621104EE787D0ACC56BEDC791"><enum>(d)</enum><header>Carryforward of
unused credit</header><text>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.</text>
</subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id61C54FF3F8D44C2A8194C72D73C9FAF3"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><enum>II</enum><header>Permanent middle
class tax relief</header>
<section id="id122F52AA37124AD885F74EF71D86A9CE"><enum>201.</enum><header>Permanent
reduction in tax rates for lower-income and middle-income individuals</header>
<subsection id="id37DD26317A0B41F195AFCCACAF572A48"><enum>(a)</enum><header>In
general</header><text>Paragraph (2) of section 1(i) is amended to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="idE298C7FF432145389D8D4A246D6A682D" style="OLC">
<paragraph id="id7874225AB7C9404DAAC4903107BC6EE5"><enum>(2)</enum><header>Reduction in
rates</header><text>The tables under subsections (a), (b), (c), (d), and (e)
shall be applied—</text>
<subparagraph id="id024CB75907664CAB8E173EBD9C8F13F0"><enum>(A)</enum><text>in the case of
taxable years beginning after 2008—</text>
<clause id="id192A60287DB84EDD9E74C11939E38FA9"><enum>(i)</enum><text>by substituting
<quote>25%</quote> for <quote>28%</quote> each place it appears (before the
application of clause (ii)), and</text>
</clause><clause id="idED8A703CDBBF4D21BD1368C3DE491D94"><enum>(ii)</enum><text>by substituting
<quote>28%</quote> for <quote>31%</quote> each place it appears, and</text>
</clause></subparagraph><subparagraph id="id95E291B69C9E489E9D638B12D7ED2690"><enum>(B)</enum><text>in the case of
taxable years beginning in 2009 and 2010—</text>
<clause id="id148F7685583A4C779A1FD7413C86D16D"><enum>(i)</enum><text>by substituting
<quote>33%</quote> for <quote>36%</quote> each place it appears, and</text>
</clause><clause id="id0BC454B9C86F49499CABA4BBA0BF061E"><enum>(ii)</enum><text>by substituting
<quote>35%</quote> for <quote>39.6%</quote> each place it
appears.</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id6DDB0E8EC72D4383A0178EE98FF788FB"><enum>(b)</enum><header>Repeal of
EGTRRA sunset</header><text>Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall
not apply to section 101 of such Act (relating to reduction in income tax rates
for individuals).</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="idCE8C22065B754BA6B583501463230954"><enum>(c)</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="idE5D871FD34CF4494BF740A77DE7F7765"><enum>202.</enum><header>Permanent
reduction in rates on capital gains for lower-income and middle-income
taxpayers</header>
<subsection id="idA8A41057732243DE901F43C56197C72B"><enum>(a)</enum><header>In
general</header>
<paragraph id="idBD038F8303994333ACEC9B8336B5DC74"><enum>(1)</enum><header>Regular
tax</header><text>Section 1(h)(1) is amended by redesignating subparagraphs (D)
and (E) as subparagraphs (E) and (F), respectively, and by striking
subparagraph (C) and inserting the following:</text>
<quoted-block display-inline="no-display-inline" id="id425E5341365F431F8C05033883091B96" style="OLC">
<subparagraph id="idEB0B8438647B41E3AE09B07B24994755"><enum>(C)</enum><text>15 percent of the
lesser of—</text>
<clause id="id44170113EC40451BA4F4F28962CCC8A6"><enum>(i)</enum><text>so much of the
adjusted net capital gain (or, if less, taxable income) as exceeds the amount
on which a tax is determined under subparagraph (B), or</text>
</clause><clause id="idA0BB7E2C8C354446A1039262FB3D070F"><enum>(ii)</enum><text>the excess (if
any) of—</text>
<subclause id="idD2D40A1C04B343BA873377D09B1F331E"><enum>(I)</enum><text>amount of taxable
income which would (without regard to this paragraph) be taxed at a rate below
the second highest tax rate, over</text>
</subclause><subclause id="idEACAED11FCD64BC19CD4559D69CF5169"><enum>(II)</enum><text>the greater of
the amounts determined under clauses (i) and (ii) of subparagraph (B);</text>
</subclause></clause></subparagraph><subparagraph id="id786D0BE887034CE38FC64B65E351C4FD"><enum>(D)</enum><text>20 percent of the
adjusted net capital gain (or, if less, taxable income) in excess of the sum of
the amounts on which tax is determined under subparagraphs (B) and
(C);</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id1BB7A0D83A3242D9B88D0AF9EC4909C1"><enum>(2)</enum><header>Minimum
tax</header><text>Section 55(b)(3) is amended by redesignating subparagraph (D)
as subparagraphs (E) and by striking subparagraph (C) and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id4A3B69BD702047658A1ED01383591B26" style="OLC">
<subparagraph id="id1E7552DE45F94F20B8A5E2AD2B298551"><enum>(C)</enum><text>15 percent of the
lesser of—</text>
<clause id="id5CAC1236214D4FB0BDA693804A9C0E3B"><enum>(i)</enum><text>so much of the
adjusted net capital gain (or, if less, taxable excess) as exceeds the amount
on which tax is determined under subparagraph (B), or</text>
</clause><clause id="id432B6D12017B4F6CB2257ED817C0B1DB"><enum>(ii)</enum><text>the excess
described in section 1(h)(1)(C)(ii), plus</text>
</clause></subparagraph><subparagraph id="idE796BAD9565343A890357F06343249A6"><enum>(D)</enum><text>20 percent of the
adjusted net capital gain (or, if less, taxable excess) in excess of the sum of
the amounts on which tax is determined under subparagraphs (B) and (C),
plus</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="id59D4A450F0944CA7AC153DD21006F3A2"><enum>(3)</enum><header>Conforming
amendments</header>
<subparagraph id="idA88836FC46B94B10990BA944825F8129"><enum>(A)</enum><text>The following
sections are each amended by striking <quote>15 percent</quote> and inserting
<quote>20 percent</quote>:</text>
<clause id="id0D51CB17D1744B35973D2BB40F940138"><enum>(i)</enum><text>Section
1445(e)(1).</text>
</clause><clause id="id4F7CD4904D7D4A0D9DEF3229476DDADD"><enum>(ii)</enum><text>The second
sentence of section 7518(g)(6)(A).</text>
</clause><clause id="idAF16FA1274FF4B7B8A8ECC0484D80C9D"><enum>(iii)</enum><text>Section
53511(f)(2) of title 46, United States Code.</text>
</clause></subparagraph><subparagraph id="idC56FCF14BF4D48AAB4801B9733DCBB41"><enum>(B)</enum><text>Section
1(h)(1)(B) is amended by striking <quote>5 percent (0 percent in the case of
taxable years beginning after 2007)</quote> and inserting <quote>0
percent</quote>.</text>
</subparagraph><subparagraph id="id098DC96165A74EE18F78E50B774C808C"><enum>(C)</enum><text>Section
55(b)(3)(B) is amended by striking <quote>5 percent (0 percent in the case of
taxable years beginning after 2007)</quote> and inserting <quote>0
percent</quote>.</text>
</subparagraph><subparagraph id="id95F8D043BA5A47B38901C5D0171D4B34"><enum>(D)</enum><text>Section
1445(e)(6) is amended by striking <quote>15 percent (20 percent in the case of
taxable years beginning after December 31, 2010)</quote> and inserting
<quote>20 percent</quote>.</text>
</subparagraph></paragraph></subsection><subsection id="id072D13C76F084B20A7013E51233756B1"><enum>(b)</enum><header>Effective
dates</header>
<paragraph id="id2B43E40914D04F36AC0AB70B3751B22B"><enum>(1)</enum><header>In
general</header><text>Except as provided in paragraph (2), the amendments made
by this section shall apply to taxable years beginning after December 31,
2010.</text>
</paragraph><paragraph id="idDA1D0645FF53498F89AF04B87590B5C3"><enum>(2)</enum><header>Withholding</header><text>The
amendment made by subsection (a)(3)(A)(i) shall apply to amounts paid on or
after January 1, 2011.</text>
</paragraph></subsection><subsection id="id490B58BB2D6E4EA68ABC1C516301FF1F"><enum>(c)</enum><header>Repeal of
JGTRRA sunset</header><text>Section 303 of the Jobs and Growth Tax Relief
Reconciliation Act of 2003 is repealed.</text>
</subsection></section><section id="id9FEEEDB6363F48D091B09DF80BFEAA01"><enum>203.</enum><header>Modifications
to child tax credit</header>
<subsection id="id39BA627ADD5543F99BEEFB3DF358F619"><enum>(a)</enum><header>Repeal of
EGTRRA sunset</header><text>Title IX of the Economic Growth and Tax Relief
Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall
not apply to sections 201 (relating to modifications to child tax credit) and
203 (relating to refunds disregarded in the administration of Federal programs
and federally assisted programs) of such Act.</text>
</subsection><subsection commented="no" id="H180F2958CC8D4B40B4A305AC78248965"><enum>(b)</enum><header>Modification of
threshold amount</header>
<paragraph commented="no" id="id2EAFD9A646A643DF85BB1DD7E231A6A2"><enum>(1)</enum><header>In
general</header><text display-inline="yes-display-inline">Clause (i) of section
24(d)(1)(B) is amended by striking <quote>$10,000</quote> and inserting
<quote>$3,000</quote>.</text>
</paragraph><paragraph id="H1CC5D900347B40229D52FAAC6D81ABE1"><enum>(2)</enum><header>Repeal of
inflation adjustment to earned income base</header><text>Subsection (d) of
section 24 (relating to portion of credit refundable) is amended by striking
paragraph (3).</text>
</paragraph><paragraph id="id45AF393EBE1444C79A703C91932FB552"><enum>(3)</enum><header>Conforming
amendment</header><text>Section 24(d) is amended by striking paragraph
(4).</text>
</paragraph></subsection><subsection id="H4ED8E032E58145C5A325F3DECD6C71B"><enum>(c)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2010.</text>
</subsection></section><section id="id5D647BF52F4C429E8D6CAE004D523BD5"><enum>204.</enum><header>Repeal of
sunset on marriage penalty relief</header><text display-inline="no-display-inline">Title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (relating to sunset of provisions of such
Act) shall not apply to sections 301, 302, and 303(a) of such Act (relating to
marriage penalty relief).</text>
</section><section id="id14CDCCA28FCF4F31A10965D4D349D303"><enum>205.</enum><header>Repeal of
sunset on expansion of dependent care credit</header><text display-inline="no-display-inline">Title IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (relating to sunset of provisions of such
Act) shall not apply to section 204 of such Act (relating to dependent care
credit).</text>
</section><section id="idEB093AE2292B48E5868B7173B9AF3551"><enum>206.</enum><header>Repeal of
sunset on expansion of adoption credit and adoption assistance
programs</header><text display-inline="no-display-inline">Title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset
of provisions of such Act) shall not apply to section 202 of such Act (relating
to expansion of adoption credit and adoption assistance programs).</text>
</section><section id="id46D7D9B32F8244BCA01CE1CAF8B77F2D"><enum>207.</enum><header>Expansion of
earned income tax credit</header>
<subsection display-inline="no-display-inline" id="id745E22AB04B542D3992BE39A565E4D18"><enum>(a)</enum><header>Repeal of
EGTRRA sunset</header><text display-inline="yes-display-inline">Title IX of the
Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset
of provisions of such Act) shall not apply to subsections (b) through (h) of
section 303 of such Act (relating to earned income tax credit).</text>
</subsection><subsection id="IDA863C117FCDD42A3A74D0FE5D1E7CD02"><enum>(b)</enum><header>Increase in
credit percentage for families with 3 or more children</header><text>Paragraph
(1) of section 32(b) is amended by striking subparagraphs (B) and (C) and
inserting the following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id01FC390A4E374D179B900A049F066F87" style="OLC">
<subparagraph id="id3E3F6B8089D8423AA4212C09E050DB89"><enum>(B)</enum><header>Increased
credit percentage for families with 3 or more qualifying
children</header><text>In the case of an eligible individual with 3 or more
qualifying children, the table in subparagraph (A) shall be applied by
substituting <quote>45</quote> for <quote>40</quote> in the second column
thereof.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id04AD79C4DF9C4C2197C711F07E206E33"><enum>(c)</enum><header>Joint
returns</header>
<paragraph id="id0D70B1C8A40B48F7AA3F0990C9A165F8"><enum>(1)</enum><header>In
general</header><text>Subparagraph (B) of section 32(b)(2) is amended by
striking <quote>increased by</quote> and all that follows and inserting
<quote>increased by $5,000.</quote></text>
</paragraph><paragraph id="id2339056A20DF46A8AB8BB083BDBC5030"><enum>(2)</enum><header>Inflation
adjustments</header><text>Clause (ii) of section 32(j)(1)(B) is amended—</text>
<subparagraph id="id3530A12F24234165AC0CFBA7903BB7BF"><enum>(A)</enum><text>by striking
<quote>$3,000</quote> and inserting <quote>$5,000</quote>, and</text>
</subparagraph><subparagraph commented="no" id="idC228AC01A91A44639AE36626109C18F6"><enum>(B)</enum><text>by striking
<quote>calendar year 2007</quote> and inserting <quote>calendar year
2008</quote>.</text>
</subparagraph></paragraph></subsection><subsection commented="no" id="id32E5EFC8185B43AE83D6538E40F1879B"><enum>(d)</enum><header>Conforming
amendment</header><text>Section 32(b) is amended by striking paragraph
(3).</text>
</subsection><subsection id="id967B1DA853DB445AA3CBB136110DCE2A"><enum>(e)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.</text>
</subsection></section><enum>III</enum><header>Permanent
estate tax relief</header>
<section id="id468D10CB39ED40F797227B0357A8AE5D" section-type="subsequent-section"><enum>301.</enum><header>Permanent extension
of estate tax as in effect in 2009</header>
<subsection id="IDedcf2911887747c4b71eddc6239f8453"><enum>(a)</enum><header>Restoration of
unified credit against gift tax</header><text>Paragraph (1) of section 2505(a)
(relating to general rule for unified credit against gift tax), after the
application of subsection (g), is amended by striking <quote>(determined as if
the applicable exclusion amount were $1,000,000)</quote>.</text>
</subsection><subsection id="ID5E2010CB7C7643DEB0D72B9B3EFF39E9"><enum>(b)</enum><header>Exclusion
equivalent of unified credit equal to $3,500,000</header><text>Subsection (c)
of section 2010 (relating to unified credit against estate tax) is amended to
read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idF795F9A3BE9543809B871227C36FAB65" style="OLC">
<subsection id="id9BDB8FBA96E14851BE9BA57B3EF92CBA"><enum>(c)</enum><header>Applicable
credit amount</header>
<paragraph id="idCD358D47EAE24DC5B4F743FD3286F4AC"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph id="id0C516540DBB448E689A1468C4F513F9E"><enum>(2)</enum><header>Applicable
exclusion amount</header>
<subparagraph id="idA2D320C2FC7442C797AD1B0C6E76E25C"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the applicable exclusion
amount is $3,500,000.</text>
</subparagraph><subparagraph commented="no" id="ID39A3500D90F14670908A2E5D2A9C869B"><enum>(B)</enum><header>Inflation
adjustment</header><text>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—</text>
<clause commented="no" id="ID3E170C55656C44F1A6482CB18B749AEA"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause commented="no" id="IDE71A5C5CFDEE4EE680E207C66AA7AF9B"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for such calendar
year by substituting <quote>calendar year 2009</quote> for <quote>calendar year
1992</quote> in subparagraph (B) thereof.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">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.</continuation-text></subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="id66F97536AD9449CA81426F8A9D00E824"><enum>(c)</enum><header>Maximum estate
tax rate equal to 45 percent</header>
<paragraph id="id510FFA3735784B80A5EFA77C9DBBAFDB"><enum>(1)</enum><header>In
general</header><text>Subsection (c) of section 2001 (relating to imposition
and rate of tax) is amended—</text>
<subparagraph id="id89AF61650C9247729AB47CC48D0F1DF7"><enum>(A)</enum><text>by striking
<quote>but not over $2,000,000</quote> in the table contained in paragraph
(1),</text>
</subparagraph><subparagraph id="idF09A3AD27D6041DEB3A286E80A37271D"><enum>(B)</enum><text>by striking the
last 2 items in such table,</text>
</subparagraph><subparagraph id="idF4A133FA88614344B0E946B399DC3A44"><enum>(C)</enum><text>by striking
<quote>(1) <header-in-text level="paragraph" style="USC">In
general</header-in-text>.—</quote>, and</text>
</subparagraph><subparagraph id="idCA4113D69FAC4A6BA653D07704D6C61F"><enum>(D)</enum><text>by striking
paragraph (2).</text>
</subparagraph></paragraph><paragraph id="H03D1C72A643E4F2AA909224BCE51C2CC"><enum>(2)</enum><header>Conforming
amendment</header><text>Paragraphs (1) and (2) of section 2102(b) are amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id1E00C552035E43938606874DE55D7698" style="OLC">
<paragraph id="id46AF03B01D75406DA055B63ED1C0B7F3"><enum>(1)</enum><header>In
general</header><text>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.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id3B75BB8F59EB40F091DBD7873D906439"><enum>(2)</enum><header>Residents of
possessions of the united states</header><text>In the case of a decedent who is
considered to be a <quote>nonresident not a citizen of the United
States</quote> 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.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id9F575CD7C5D043EAB39A60DF85FC04F0"><enum>(d)</enum><header>Modifications
of estate and gift taxes To reflect differences in unified credit resulting
from different tax rates</header>
<paragraph id="idC05D0D1A76F448D68071A6EADA990622"><enum>(1)</enum><header>Estate
tax</header>
<subparagraph id="idDE15E16338A64B6E8D2C67F3E4B085DB"><enum>(A)</enum><header>In
general</header><text>Section 2001(b)(2) (relating to computation of tax) is
amended by striking <quote>if the provisions of subsection (c) (as in effect at
the decedent's death)</quote> and inserting <quote>if the modifications
described in subsection (g)</quote>.</text>
</subparagraph><subparagraph id="idD3ADED050E504224B92A04F8645E1698"><enum>(B)</enum><header>Modifications</header><text>Section
2001 is amended by adding at the end the following new subsection:</text>
<quoted-block display-inline="no-display-inline" id="id2761613838854178AB1B60237FA3FDB3" style="OLC">
<subsection id="id2382E222DD224F999A3257C6F8E4C46F"><enum>(g)</enum><header>Modifications
to gift tax payable To reflect different tax rates</header><text>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—</text>
<paragraph id="idC04A088590004D6BB2A2EE8800BCD125"><enum>(1)</enum><text>the tax imposed
by chapter 12 with respect to such gifts, and</text>
</paragraph><paragraph id="id0B99FFECB1E0407B87C25920C7F3F72D"><enum>(2)</enum><text>the credit
allowed against such tax under section 2505, including in computing—</text>
<subparagraph id="id58A9E6183A31466393F5C4DA3F0C4E25"><enum>(A)</enum><text>the applicable
credit amount under section 2505(a)(1), and</text>
</subparagraph><subparagraph id="idE9846613D21742B09F1964040D000FC0"><enum>(B)</enum><text>the sum of the
amounts allowed as a credit for all preceding periods under section
2505(a)(2).</text>
</subparagraph><continuation-text continuation-text-level="paragraph">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.</continuation-text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subparagraph></paragraph><paragraph id="idA225C1245F214BF48E49CADF3BF96939"><enum>(2)</enum><header>Gift
tax</header><text>Section 2505(a) (relating to unified credit against gift tax)
is amended by adding at the end the following new flush sentence:</text>
<quoted-block display-inline="no-display-inline" id="idC1894F8BF85F4C3A8438CE01294E764E" style="OLC">
<quoted-block-continuation-text quoted-block-continuation-text-level="subsection">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.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection id="id555774CEE8E940C2B60A4F643D263221"><enum>(e)</enum><header>Increase in
aggregate reduction in fair market value allowed under special use
valuation</header><text>Section 2032A(a) (relating to value based on use under
which property qualifies) is amended—</text>
<paragraph id="id0EC67755793A4C5D9D42F0C8FD915676"><enum>(1)</enum><text>by striking
<quote>$750,000</quote> in paragraph (2) and inserting “$3,500,000,</text>
</paragraph><paragraph id="idC402702B0BDD45CA83354BCC2FEB20E2"><enum>(2)</enum><text>by striking
<quote>1998</quote> in paragraph (3) and inserting <quote>2010</quote>,</text>
</paragraph><paragraph id="id4FB2DEB5BB2A456EA5100F0E6A04EBB5"><enum>(3)</enum><text>by striking
<quote>$750,000</quote> in paragraph (3) and inserting
<quote>$3,500,000</quote>, and</text>
</paragraph><paragraph id="id603366FF330C4FFEA74D9C9842ACD14E"><enum>(4)</enum><text>by striking
<quote>1997</quote> in paragraph (3) and inserting <quote>2009</quote>.</text>
</paragraph></subsection><subsection id="id555416B6381A45BE8447FAE00A161E3E"><enum>(f)</enum><header>Effective
date</header><text>The amendments made by this section shall apply to estates
of decedents dying, generation-skipping transfers, and gifts made, after
December 31, 2009.</text>
</subsection><subsection id="id7F286F40DB6B480AAA64ED1F39744CA7"><enum>(g)</enum><header>Additional
modifications to estate tax</header>
<paragraph id="IDACB0F3457B4144E881A8921E38F0820D"><enum>(1)</enum><header>In
general</header><text>The following provisions of the Economic Growth and Tax
Relief Reconciliation Act of 2001, and the amendments made by such provisions,
are hereby repealed:</text>
<subparagraph id="idAE8C73E2E96C48A8B50441FEC6FE21D6"><enum>(A)</enum><text>Subtitles A and E
of title V.</text>
</subparagraph><subparagraph id="idAFB3454B72604F2C95920AD0E6ED3BCE"><enum>(B)</enum><text>Subsection (d),
and so much of subsection (f)(3) as relates to subsection (d), of section
511.</text>
</subparagraph><subparagraph id="id2EEA207DE2594B6C8A5DEB80FA274C80"><enum>(C)</enum><text>Paragraph (2) of
subsection (b), and paragraph (2) of subsection (e), of section 521.</text>
</subparagraph><continuation-text continuation-text-level="paragraph">The Internal
Revenue Code of 1986 shall be applied as if such provisions and amendments had
never been enacted.</continuation-text></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID0D88FCA8613949829C190542A57B6F38"><enum>(2)</enum><header>Sunset not to
apply to title <enum-in-header>V</enum-in-header> of
egtrra</header><text>Section 901 of the Economic Growth and Tax Relief
Reconciliation Act of 2001 shall not apply to title V of such Act.</text>
</paragraph><paragraph id="IDF2E31C4A75024173A41C3D64E7690927"><enum>(3)</enum><header>Repeal of
deadwood</header>
<subparagraph id="ID228887244129458198068E67B4F4A3AD"><enum>(A)</enum><text>Sections 2011,
2057, and 2604 are hereby repealed.</text>
</subparagraph><subparagraph id="ID484A543DCE2449F884CFA47990B354DE"><enum>(B)</enum><text>The table of
sections for part II of subchapter A of chapter 11 is amended by striking the
item relating to section 2011.</text>
</subparagraph><subparagraph id="IDfdc37b0a0bda48b7a89f3d13703e0778"><enum>(C)</enum><text>The table of
sections for part IV of subchapter A of chapter 11 is amended by striking the
item relating to section 2057.</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID25639599FD724F398D7DBECC733497E1"><enum>(D)</enum><text>The table of
sections for subchapter A of chapter 13 is amended by striking the item
relating to section 2604.</text>
</subparagraph></paragraph></subsection></section><section id="H9EE3A9AC72A44C629E269BA7C4E70266"><enum>302.</enum><header>Unified credit
increased by unused unified credit of deceased spouse</header>
<subsection id="HAEFCE2837DAD4600BA51014EF5847DEC"><enum>(a)</enum><header>In
general</header><text>Section 2010(c), as amended by section 301(b), is amended
by striking paragraph (2) and inserting the following new paragraphs:</text>
<quoted-block id="H720F388BF5A54D2388008700D6073C7C" style="OLC">
<paragraph id="HA2D7843962C047BDBD9024327BCA8D48"><enum>(2)</enum><header>Applicable
exclusion amount</header><text>For purposes of this subsection, the applicable
exclusion amount is the sum of—</text>
<subparagraph id="H34699E0D659D4FD690C5E9BE4B38F41E"><enum>(A)</enum><text>the basic
exclusion amount, and</text>
</subparagraph><subparagraph id="H946F335B9869482685CCB5002C3D8FBC"><enum>(B)</enum><text>in the case of a
surviving spouse, the aggregate deceased spousal unused exclusion
amount.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="HE3E1119D9C8E493FBA78031E71A35304"><enum>(3)</enum><header>Basic exclusion
amount</header>
<subparagraph id="HCD1364FD8C3C4411BA5636A8AA59A99E"><enum>(A)</enum><header>In
general</header><text>For purposes of this subsection, the basic exclusion
amount is $3,500,000.</text>
</subparagraph><subparagraph commented="no" id="id58D352FC74CB4F26AB4556EB46D6958D"><enum>(B)</enum><header>Inflation
adjustment</header><text>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—</text>
<clause commented="no" id="id1FD92B3650E4487189E4EFAD7214A55D"><enum>(i)</enum><text>such dollar
amount, multiplied by</text>
</clause><clause commented="no" id="idE436808BE9CB441AB3FFC018834F1804"><enum>(ii)</enum><text>the
cost-of-living adjustment determined under section 1(f)(3) for such calendar
year by substituting <quote>calendar year 2009</quote> for <quote>calendar year
1992</quote> in subparagraph (B) thereof.</text>
</clause><continuation-text commented="no" continuation-text-level="subparagraph">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.</continuation-text></subparagraph></paragraph><paragraph id="H943753DF9B9E4490AC302BC602000048"><enum>(4)</enum><header>Aggregate
deceased spousal unused exclusion amount</header><text>For purposes of this
subsection, the term <term>aggregate deceased spousal unused exclusion
amount</term> means the lesser of—</text>
<subparagraph id="HE8DAE05FF69B432C91A975027873EF11"><enum>(A)</enum><text>the basic
exclusion amount, or</text>
</subparagraph><subparagraph id="H03E0E805FA67418E879390E69244A163"><enum>(B)</enum><text>the sum of the
deceased spousal unused exclusion amounts computed with respect to each
deceased spouse of the surviving spouse.</text>
</subparagraph></paragraph><paragraph id="H221FD3760693413FAC9B1BF9C51D51EB"><enum>(5)</enum><header>Deceased spousal
unused exclusion amount</header><text>For purposes of this subsection, the term
<term>deceased spousal unused exclusion amount</term> means, with respect to
the surviving spouse of any deceased spouse dying after December 31, 2009, the
excess (if any) of—</text>
<subparagraph id="HF859E4ACCFEF455E9D54848F762E3217"><enum>(A)</enum><text>the basic
exclusion amount of the deceased spouse, over</text>
</subparagraph><subparagraph id="HEE45E24A95F44CB093AD571A2D8269"><enum>(B)</enum><text>the amount with
respect to which the tentative tax is determined under section 2001(b)(1) on
the estate of such deceased spouse.</text>
</subparagraph></paragraph><paragraph id="HF736F5B8D2314FD28B008CA4082243DA"><enum>(6)</enum><header>Special
rules</header>
<subparagraph id="H827DB1844CCE4C5882A1A3188D83BAAB"><enum>(A)</enum><header>Election
required</header><text>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.</text>
</subparagraph><subparagraph id="H096109197E9647B7AD1B10BF0639CD00"><enum>(B)</enum><header>Examination of
prior returns after expiration of period of limitations with respect to
deceased spousal unused exclusion amount</header><text>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.</text>
</subparagraph></paragraph><paragraph id="H4D51A5BA9B9B42A3AD6828EFD12975AB"><enum>(7)</enum><header>Regulations</header><text>The
Secretary shall prescribe such regulations as may be necessary or appropriate
to carry out this
subsection.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection id="H25B385B58FDD496FB51DD3F9A66241EB"><enum>(b)</enum><header>Conforming
amendments</header>
<paragraph id="H4C3643B8087E458690714B62E7736040"><enum>(1)</enum><text>Paragraph (1) of
section 2505(a), as amended by section 301(a), is amended to read as
follows:</text>
<quoted-block id="H2D75C53D41E74CDC9DCDBE12A1DC849" style="OLC">
<paragraph id="HEB767A7A671043D688D8469C88948193"><enum>(1)</enum><text>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</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph><paragraph id="H066475B357ED45FC8B1EB2966593F3CF"><enum>(2)</enum><text>Section 2631(c) is
amended by striking <quote>the applicable exclusion amount</quote> and
inserting <quote>the basic exclusion amount</quote>.</text>
</paragraph><paragraph id="HFE37CB509142462FA2CAAB4CA15BB46"><enum>(3)</enum><text>Section 6018(a)(1)
is amended by striking <quote>applicable exclusion amount</quote> and inserting
<quote>basic exclusion amount</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="H1B712EC271D54A7D837799E7528D25DA"><enum>(c)</enum><header>Effective
Date</header><text>The amendments made by this section shall apply to estates
of decedents dying, generation-skipping transfers, and gifts made, after
December 31, 2009.</text>
</subsection></section>