[House Report 111-682]
[From the U.S. Government Publishing Office]


111th Congress  }                                            {   Report
  2d Session    }             HOUSE OF REPRESENTATIVES       {  111-682
=======================================================================
 
   PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE HOUSE 
AMENDMENT TO THE SENATE AMENDMENT TO THE BILL (H.R. 4853) TO AMEND THE 
  INTERNAL REVENUE CODE OF 1986 TO EXTEND THE FUNDING AND EXPENDITURE 
  AUTHORITY OF THE AIRPORT AND AIRWAY TRUST FUND, TO AMEND TITLE 49, 
     UNITED STATES CODE, TO EXTEND AUTHORIZATIONS FOR THE AIRPORT 
              IMPROVEMENT PROGRAM, AND FOR OTHER PURPOSES 

                                _______
                                

 December 15, 2010.--Referred to the House Calendar and ordered to be 
                                printed.

                                _______
                                

              Ms. Slaughter, from the Committee on Rules, 
                        submitted the following

                              R E P O R T

                      [To accompany H. Res. 1766]

    The Committee on Rules, having had under consideration 
House Resolution 1766, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of the Senate 
amendment to the House amendment to the Senate amendment to 
H.R. 4853, the Tax Relief, Unemployment Insurance 
Reauthorization, and Job Creation Act of 2010. The resolution 
provides three hours of debate on the topics addressed by the 
motions specified in sections 2 and 3 of the resolution, 
equally divided and controlled by the chair and ranking 
minority member of the Committee on Ways and Means.
    The resolution makes in order a motion offered by the chair 
of the Committee on Ways and Means that the House concur in the 
Senate amendment to the House amendment to the Senate amendment 
to H.R. 4853 with the amendment printed in this report. The 
resolution waives all points of order against consideration of 
the motion except those arising under clause 10 of rule XXI.
    If the motion described in section 2 of the resolution 
fails of adoption, the resolution causes to be pending a motion 
to concur in the Senate amendment to the House amendment to the 
Senate amendment to H.R. 4853.
    Finally, until completion of proceedings enabled by the 
first three sections of the resolution, the Chair may decline 
to entertain any intervening motion, resolution, question, or 
notice; the Chair may postpone such proceedings to such time as 
may be designated by the Speaker; and each amendment and motion 
considered pursuant to the resolution shall be considered as 
read.

                         EXPLANATION OF WAIVERS

    Although the rule waives all points of order against 
consideration of the motion (except those arising under clause 
10 of rule XXI), the Committee is not aware of any points of 
order against the motion. The waiver of all points of order 
against the motion is prophylactic.

                            COMMITTEE VOTES

    The results of each record vote on an amendment or motion 
to report, together with the names of those voting for and 
against, are printed below:

Rules Committee record vote No. 516

    Date: December 15, 2010.
    Measure: Senate amendment to the House amendment to the 
Senate amendment to H.R. 4853.
    Motion by: Mr. Dreier.
    Summary of motion: To make in order and provide the 
necessary waivers for all amendments submitted to the Rules 
Committee.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Matsui--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Foxx--
Yea; Slaughter--Nay.

Rules Committee record vote No. 517

    Date: December 15, 2010.
    Measure: Senate amendment to the House amendment to the 
Senate amendment to H.R. 4853.
    Motion by: Dr. Foxx.
    Summary of motion: To make in order and provide any 
necessary waivers for an amendment by Rep. Pence (IN), #1, 
which would permanently extend the tax rates established in 
2001 and 2003, permanently repeal the estate tax, maintain the 
current tax level on capital gains and dividends income, and 
provide permanent tax relief from the Alternative Minimum Tax 
by raising the AMT exemption.
    Results: Defeated 2-7.
    Vote by Members: McGovern--Nay; Matsui--Nay; Arcuri--Nay; 
Perlmutter--Nay; Pingree--Nay; Polis--Nay; Dreier--Yea; Foxx--
Yea; Slaughter--Nay.

                       SUMMARY OF HOUSE AMENDMENT

    Pomeroy (ND): Two-year extension of 2009 estate tax law. 
The amendment would strike Title III of the Senate amendment to 
H.R. 4583 and amend the bill to provide two years of estate tax 
relief at 2009 levels. In calendar years 2011 and 2012, the 
estate tax exemption amount would be $3.5 million ($7 million 
total for a married couple) and the maximum tax rate on estates 
would be 45%. Additionally, the amendment would provide estates 
from decedents in 2010 with the ability to elect to be treated 
under the 2009 levels or to be treated under current law for 
tax purposes. This election will allow estates to receive a 
step up in basis on inherited property rather than the 2010 
carryover basis rules. The exemption level and rate are 
consistent with the estate tax proposal included in the 
President's FY2010 and FY2011 Budgets. Under the Senate 
amendment to H.R. 4583, the bill would provide two years of 
estate tax relief with a $5 million estate tax exemption ($10 
million total for a married couple) and a maximum rate of 35%. 
This amendment would save $23 billion, and would affect a mere 
6,600 estates in 2011. These 6,600 estates would receive an 
average additional tax cut of more than $1.5 million under the 
Senate bill.

                        TEXT OF HOUSE AMENDMENT

    In the matter proposed to be inserted by the Senate 
Amendment to the House Amendment to the Senate Amendment,
  Strike title III and insert the following:

                 TITLE III--TEMPORARY ESTATE TAX RELIEF


SEC. 301. REINSTATEMENT OF ESTATE TAX; REPEAL OF CARRYOVER BASIS.

  (a) In General.--Each provision of law amended by subtitle A 
or E of title V of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 is amended to read as such provision 
would read if such subtitle had never been enacted.
  (b) Conforming Amendment.--On and after January 1, 2011, 
paragraph (1) of section 2505(a) of the Internal Revenue Code 
of 1986 is amended to read as such paragraph would read if 
section 521(b)(2) of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 had never been enacted.
  (c) Special Election With Respect to Estates of Decedents 
Dying in 2010.--Notwithstanding subsection (a), in the case of 
an estate of a decedent dying after December 31, 2009, and 
before January 1, 2011, the executor (within the meaning of 
section 2203 of the Internal Revenue Code of 1986) may elect to 
apply such Code as though the amendments made by subsection (a) 
do not apply with respect to chapter 11 of such Code and with 
respect to property acquired or passing from such decedent 
(within the meaning of section 1014(b) of such Code).  Such 
election shall be made at such time and in such manner as the 
Secretary of the Treasury or the Secretary's delegate shall 
provide. Such an election once made shall be revocable only 
with the consent of the Secretary of the Treasury or the 
Secretary's delegate. For purposes of section 2652(a)(1) of 
such Code, the determination of whether any property is subject 
to the tax imposed by such chapter 11 shall be made without 
regard to any election made under this subsection.
  (d) Extension of Time for Performing Certain Acts.--
          (1) Estate tax.--In the case of the estate of a 
        decedent dying after December 31, 2009, and before the 
        date of the enactment of this Act, the due date for--
                  (A) filing any return under section 6018 of 
                the Internal Revenue Code of 1986 (including 
                any election required to be made on such a 
                return) as such section is in effect after the 
                date of the enactment of this Act without 
                regard to any election under subsection (c),
                  (B) making any payment of tax under chapter 
                11 of such Code, and
                  (C) making any disclaimer described in 
                section 2518(b) of such Code of an interest in 
                property passing by reason of the death of such 
                decedent,
        shall not be earlier than the date which is 9 months 
        after the date of the enactment of this Act.
          (2) Generation-skipping tax.--In the case of any 
        generation-skipping transfer made after December 31, 
        2009, and before the date of the enactment of this Act, 
        the due date for filing any return under section 2662 
        of the Internal Revenue Code of 1986 (including any 
        election required to be made on such a return) shall 
        not be earlier than the date which is 9 months after 
        the date of the enactment of this Act.
  (e) Effective Date.--Except as otherwise provided in this 
section, the amendments made by this section shall apply to 
estates of decedents dying, and transfers made, after December 
31, 2009.

SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIPPING 
                    TRANSFER TAXES.

  (a) Modifications to Estate Tax.--
          (1) $3,500,000 applicable exclusion amount.--
        Subsection (c) of section 2010 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 
                $3,500,000.
                  ``(B) Inflation adjustment.--In the case of 
                any decedent dying in a calendar year after 
                2011, 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 2010' 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.''.
          (2) Maximum estate tax rate equal to 45 percent.--
        Subsection (c) of section 2001 is amended--
                  (A) by striking ``Over $1,500,000'' and all 
                that follows in the table contained in 
                paragraph (1) and inserting the following:


``Over $1,500,000............................  $555,800 plus 45 percent of the excess of such amount over
                                                $1,500,000.'',


                  (B) by striking ``(1) In general.--'', and
                  (C) by striking paragraph (2).
  (b) Modifications of Gift Tax Rate.--
          (1) In general.--On and after January 1, 2011, 
        subsection (a) of section 2502 is amended to read as 
        such subsection would read if section 511(d) of the 
        Economic Growth and Tax Relief Reconciliation Act of 
        2001 had never been enacted.
          (2) Applicable exclusion amount for gift tax.--
                  (A) Inflation adjustment.--Section 2505 is 
                amended by adding at the end the following new 
                subsection:
  ``(d) Inflation Adjustment.--In the case of any calendar year 
after 2011, the dollar amount in subsection (a)(1) shall be 
increased by an amount equal to--
          ``(1) such dollar amount, multiplied by
          ``(2) the cost-of-living adjustment determined under 
        section 1(f)(3) for such calendar year by substituting 
        `calendar year 2010' 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.''.
                  (B) Effective date.--The amendment made by 
                this paragraph shall apply to calendar years 
                beginning after 2011.
  (c) Modification of Generation-skipping Transfer Tax.--In the 
case of any generation-skipping transfer made after December 
31, 2009, and before January 1, 2011, the applicable rate 
determined under section 2641(a) of the Internal Revenue Code 
of 1986 shall be zero.
  (d) Modifications of Estate and Gift Taxes to Reflect 
Differences in Credit Resulting From Different Tax Rates.--
          (1) Estate tax.--
                  (A) In general.--Section 2001(b)(2) 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 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).''.
          (2) Gift tax.--Section 2505(a) 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) Conforming Amendment.--Section 2511 is amended by 
striking subsection (c).
  (f) Effective Date.--Except as otherwise provided in this 
section, 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. APPLICATION OF EGTRRA SUNSET TO THIS TITLE.

  Section 901 of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 shall apply to the amendments made 
by this title.

                                  
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