[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 16 Introduced in House (IH)]
112th CONGRESS
2d Session
H. R. 16
To provide estate, gift, and generation-skipping transfer tax relief.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 30, 2012
Mr. Levin (for himself, Ms. Pelosi, Mr. Hoyer, Mr. Clyburn, Mr. Rangel,
Mr. Lewis of Georgia, Mr. Neal, Mr. Larson of Connecticut, Mr. Crowley,
Mr. Blumenauer, Mr. Pascrell, Mr. Van Hollen, and Mrs. Capps)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on the Budget, for a
period to be subsequently determined by the Speaker, in each case for
consideration of such provisions as fall within the jurisdiction of the
committee concerned
_______________________________________________________________________
A BILL
To provide estate, gift, and generation-skipping transfer tax relief.
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 ``Sensible Estate Tax Relief Act of
2012''.
SEC. 2. ESTATE, GIFT, AND GENERATION-SKIPPING TRANSFER TAX RELIEF.
(a) Temporary Extension.--Section 901(a)(2) of the Economic Growth
and Tax Relief Reconciliation Act of 2001 is amended by striking
``December 31, 2012'' and inserting ``December 31, 2013''.
(b) Modifications to Estate Tax.--
(1) Exclusion amount.--Paragraph (3) of section 2010(c) of
the Internal Revenue Code of 1986 is amended to read as
follows:
``(3) Basic exclusion amount.--For purposes of this
section, the basic exclusion amount is $3,500,000.''.
(2) Maximum estate tax rate.--The table in subsection (c)
of section 2001 of such Code is amended by striking ``Over
$500,000'' and all that follows and inserting the following:
Over $500,000 but not over
$750,000.
$155,800, plus 37 percent of
the excess of such
amount over $500,000.
Over $750,000 but not over
$1,000,000.
$248,300, plus 39 percent of
the excess of such
amount over $750,000.
Over $1,000,000 but not over
$1,250,000.
$345,800, plus 41 percent of
the excess of such
amount over $1,000,000.
Over $1,250,000 but not over
$1,500,000.
$448,300, plus 43 percent of
the excess of such
amount over $1,250,000.
Over $1,500,000................
$555,800, plus 45 percent of
the excess of such
amount over
$1,500,000.''.
(c) Modifications of Estate and Gift Taxes To Reflect Differences
in Credit Resulting From Different Tax Rates and Exclusion Amounts.--
(1) Changing tax rates.--Notwithstanding section 304 of the
Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010, section 901 of the Economic Growth and
Tax Relief Reconciliation Act of 2001 shall not apply to the
amendments made by section 302(d) of the Tax Relief,
Unemployment Insurance Reauthorization, and Job Creation Act of
2010.
(2) Decreasing exclusions.--
(A) Estate tax adjustment.--Section 2001 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new subsection:
``(h) Adjustment To Reflect Changes in Exclusion Amount.--
``(1) In general.--If, with respect to any gift to which
subsection (b)(2) applies, the applicable exclusion amount in
effect at the time of the decedent's death is less than such
amount in effect at the time such gift is made by the decedent,
the amount of tax computed under subsection (b) shall be
reduced by the amount of tax which would have been payable
under chapter 12 at the time of the gift if the applicable
exclusion amount in effect at such time had been the applicable
exclusion amount in effect at the time of the decedent's death
and the modifications described in subsection (g) had been
applicable at the time of such gifts.
``(2) Limitation.--The aggregate amount of gifts made in
any calendar year to which the reduction under paragraph (1)
applies shall not exceed the excess of--
``(A) the applicable exclusion amount in effect for
such calendar year, over
``(B) the applicable exclusion amount in effect at
the time of the decedent's death.
``(3) Applicable exclusion amount.--The term `applicable
exclusion amount' means, with respect to any period, the amount
determined under section 2010(c) for such period, except that
in the case of any period for which such amount includes the
deceased spousal unused exclusion amount (as defined in section
2010(c)(4)), such term shall mean the basic exclusion amount
(as defined under section 2010(c)(3), as in effect for such
period).''.
(B) Gift tax adjustment.--Section 2502 of such Code
is amended by adding at the end the following new
subsection:
``(d) Adjustment To Reflect Changes in Exclusion Amount.--
``(1) In general.--If the taxpayer made a taxable gift in
an applicable preceding calendar period, the amount of tax
computed under subsection (a) shall be reduced by the amount of
tax which would have been payable under chapter 12 for such
applicable preceding calendar period if the applicable
exclusion amount in effect for such preceding calendar period
had been the applicable exclusion amount in effect for the
calendar year for which the tax is being computed and the
modifications described in subsection (g) had been applicable
for such preceding calendar period.
``(2) Limitation.--The aggregate amount of gifts made in
any applicable preceding calendar period to which the reduction
under paragraph (1) applies shall not exceed the excess of--
``(A) the applicable exclusion amount for such
preceding calendar period, over
``(B) the applicable exclusion amount for the
calendar year for which the tax is being computed.
``(3) Applicable preceding calendar year period.--The term
`applicable preceding calendar year period' means any preceding
calendar year period in which the applicable exclusion amount
exceeded the applicable exclusion amount for the calendar year
for which the tax is being computed.
``(4) Applicable exclusion amount.--The term `applicable
exclusion amount' means, with respect to any period, the amount
determined under section 2010(c) for such period, except that
in the case of any period for which such amount includes the
deceased spousal unused exclusion amount (as defined in section
2010(c)(4)), such term shall mean the basic exclusion amount
(as defined under section 2010(c)(3), as in effect for such
period).''.
(d) Effective Date.--
(1) In general.--Except as otherwise provided in this
subsection, the amendments made by this section shall apply to
estates of decedents dying, and generation-skipping transfers
and gifts made, after December 31, 2012.
(2) Extension.--The amendment made by subsection (a) shall
take effect as if included in the enactment of the Economic
Growth and Tax Relief Reconciliation Act of 2001.
(e) Application of EGTRRA Sunset.--Section 901 of the Economic
Growth and Tax Relief Reconciliation Act shall apply to the amendments
made by subsection (b).
SEC. 3. TREATMENT FOR PAYGO PURPOSES.
The budgetary effects of this Act shall not be entered on either
PAYGO scorecard maintained pursuant to section 4(d) of the Statutory
Pay-As-You-Go Act of 2010.
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