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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2717 Introduced in Senate (IS)]

106th CONGRESS
  2d Session
                                S. 2717

 To amend the Internal Revenue Code of 1986 to gradually increase the 
       estate tax deduction for family-owned business interests.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             June 13, 2000

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
 To amend the Internal Revenue Code of 1986 to gradually increase the 
       estate tax deduction for family-owned business interests.

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

SECTION 1. GRADUAL INCREASE IN ESTATE TAX DEDUCTION FOR FAMILY-OWNED 
              BUSINESS INTERESTS.

    (a) Increase in Dollar Limitation.--
            (1) In general.--Section 2057(a)(2) of the Internal Revenue 
        Code of 1986 (relating to maximum deduction) is amended by 
        striking ``$675,000'' and inserting ``the applicable amount''.
            (2) Applicable amount.--Section 2057(a) of such Code is 
        amended by adding at the end the following:
            ``(4) Applicable amount.--For purposes of this subsection, 
        the applicable amount shall be determined under the following 
        table:

``In the case of estates of         The applicable amount is--
        decedents dying after--
    December 31, 2001.............................          $2,375,000 
    December 31, 2003.............................          $3,375,000 
    December 31, 2004.............................          $4,375,000 
    December 31, 2006.............................        $5,375,000.''
            (3) Conforming amendments.--Section 2057(a)(3)(B) of such 
        Code (relating to coordination with unified credit) is 
        amended--
                    (A) by striking ``$675,000'' both places it appears 
                and inserting ``the applicable amount'', and
                    (B) by striking ``$675,000'' in the heading and 
                inserting ``applicable amount''.
            (4) Effective date.--The amendments made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        2000.
    (b) Removal of Dollar Limitation.--
            (1) In general.--Section 2057(a) of the Internal Revenue 
        Code of 1986 (relating to deduction for family-owned business 
        interests), as amended by subsection (a), is amended--
                    (A) by striking paragraphs (2), (3), and (4), and
                    (B) by striking ``General Rule.--'' and all that 
                follows through ``For purposes'' and inserting 
                ``Allowance of Deduction.--For purposes''.
            (2) Effective date.--The amendments made by this subsection 
        shall apply to estates of decedents dying after December 31, 
        2007.
                                 <all>
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