I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Sensible Estate Tax 

5 Relief Act of 2012’’. 


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1 SEC. 2. ESTATE, GIFT, AND GENERATION-SKIPPING TRANS2 FER TAX RELIEF. 

3 (a) TEMPORARY EXTENSION.—Section 901(a)(2) of 

4 the Economic Growth and Tax Relief Reconciliation Act 

5 of 2001 is amended by striking ‘‘December 31, 2012’’ and 

6 inserting ‘‘December 31, 2013’’. 

7 (b) MODIFICATIONS TO ESTATE TAX.— 

8 (1) EXCLUSION AMOUNT.—Paragraph (3) of 

9 section 2010(c) of the Internal Revenue Code of 

10 1986 is amended to read as follows: 

11 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur12 poses of this section, the basic exclusion amount is 

13 $3,500,000.’’. 

14 (2) MAXIMUM ESTATE TAX RATE.—The table in 

15 subsection (c) of section 2001 of such Code is 

16 amended by striking ‘‘Over $500,000’’ and all that 

17 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.’’. 


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1 (c) MODIFICATIONS OF ESTATE AND GIFT TAXES TO

2 REFLECT DIFFERENCES IN CREDIT RESULTING FROM

3 DIFFERENT TAX RATES AND EXCLUSION AMOUNTS.— 

4 (1) CHANGING TAX RATES.—Notwithstanding 

5 section 304 of the Tax Relief, Unemployment Insur6 ance Reauthorization, and Job Creation Act of 

7 2010, section 901 of the Economic Growth and Tax 

8 Relief Reconciliation Act of 2001 shall not apply to 

9 the amendments made by section 302(d) of the Tax 

10 Relief, Unemployment Insurance Reauthorization, 

11 and Job Creation Act of 2010. 

12 (2) DECREASING EXCLUSIONS.— 

13 (A) ESTATE TAX ADJUSTMENT.—Section 

14 2001 of the Internal Revenue Code of 1986 is 

15 amended by adding at the end the following 

16 new subsection: 

17 ‘‘(h) ADJUSTMENT TO REFLECT CHANGES IN EX18 CLUSION AMOUNT.— 

19 ‘‘(1) IN GENERAL.—If, with respect to any gift 

20 to which subsection (b)(2) applies, the applicable ex21 clusion amount in effect at the time of the dece22 dent’s death is less than such amount in effect at 

23 the time such gift is made by the decedent, the 

24 amount of tax computed under subsection (b) shall 

25 be reduced by the amount of tax which would have 


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1 been payable under chapter 12 at the time of the 

2 gift if the applicable exclusion amount in effect at 

3 such time had been the applicable exclusion amount 

4 in effect at the time of the decedent’s death and the 

5 modifications described in subsection (g) had been 

6 applicable at the time of such gifts. 

7 ‘‘(2) LIMITATION.—The aggregate amount of 

8 gifts made in any calendar year to which the reduc9 tion under paragraph (1) applies shall not exceed 

10 the excess of— 

11 ‘‘(A) the applicable exclusion amount in ef12 fect for such calendar year, over 

13 ‘‘(B) the applicable exclusion amount in ef14 fect at the time of the decedent’s death. 

15 ‘‘(3) APPLICABLE EXCLUSION AMOUNT.—The 

16 term ‘applicable exclusion amount’ means, with re17 spect to any period, the amount determined under 

18 section 2010(c) for such period, except that in the 

19 case of any period for which such amount includes 

20 the deceased spousal unused exclusion amount (as 

21 defined in section 2010(c)(4)), such term shall mean 

22 the basic exclusion amount (as defined under section 

23 2010(c)(3), as in effect for such period).’’. 


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1 (B) GIFT TAX ADJUSTMENT.—Section 

2 2502 of such Code is amended by adding at the 

3 end the following new subsection: 

4 ‘‘(d) ADJUSTMENT TO REFLECT CHANGES IN EX5 CLUSION AMOUNT.— 

6 ‘‘(1) IN GENERAL.—If the taxpayer made a tax7 able gift in an applicable preceding calendar period, 

8 the amount of tax computed under subsection (a) 

9 shall be reduced by the amount of tax which would 

10 have been payable under chapter 12 for such appli11 cable preceding calendar period if the applicable ex12 clusion amount in effect for such preceding calendar 

13 period had been the applicable exclusion amount in 

14 effect for the calendar year for which the tax is 

15 being computed and the modifications described in 

16 subsection (g) had been applicable for such pre17 ceding calendar period. 

18 ‘‘(2) LIMITATION.—The aggregate amount of 

19 gifts made in any applicable preceding calendar pe20 riod to which the reduction under paragraph (1) ap21 plies shall not exceed the excess of— 

22 ‘‘(A) the applicable exclusion amount for 

23 such preceding calendar period, over 


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1 ‘‘(B) the applicable exclusion amount for 

2 the calendar year for which the tax is being 

3 computed. 

4 ‘‘(3) APPLICABLE PRECEDING CALENDAR YEAR

5 PERIOD.—The term ‘applicable preceding calendar 

6 year period’ means any preceding calendar year pe7 riod in which the applicable exclusion amount ex8 ceeded the applicable exclusion amount for the cal9 endar year for which the tax is being computed. 

10 ‘‘(4) APPLICABLE EXCLUSION AMOUNT.—The 

11 term ‘applicable exclusion amount’ means, with re12 spect to any period, the amount determined under 

13 section 2010(c) for such period, except that in the 

14 case of any period for which such amount includes 

15 the deceased spousal unused exclusion amount (as 

16 defined in section 2010(c)(4)), such term shall mean 

17 the basic exclusion amount (as defined under section 

18 2010(c)(3), as in effect for such period).’’. 

19 (d) EFFECTIVE DATE.— 

20 (1) IN GENERAL.—Except as otherwise pro21 vided in this subsection, the amendments made by 

22 this section shall apply to estates of decedents dying, 

23 and generation-skipping transfers and gifts made, 

24 after December 31, 2012. 


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1 (2) EXTENSION.—The amendment made by 

2 subsection (a) shall take effect as if included in the 

3 enactment of the Economic Growth and Tax Relief 

4 Reconciliation Act of 2001. 

5 (e) APPLICATION OF EGTRRA SUNSET.—Section 

6 901 of the Economic Growth and Tax Relief Reconcili7 ation Act shall apply to the amendments made by sub8 section (b). 

9 SEC. 3. TREATMENT FOR PAYGO PURPOSES. 

10 The budgetary effects of this Act shall not be entered 

11 on either PAYGO scorecard maintained pursuant to sec12 tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 

Æ 


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