I 

111TH CONGRESS 

1ST SESSION H. R. 3905 

To amend the Internal Revenue Code of 1986 to repeal the 1-year termination 

of the estate tax, to increase the estate and gift tax unified credit, 

and to coordinate a reduction in the maximum rate of tax with a 

phaseout of the deduction for State death taxes. 

IN THE HOUSE OF REPRESENTATIVES 

OCTOBER 22, 2009 

Ms. BERKLEY (for herself, Mr. BRADY of Texas, Mr. DAVIS of Alabama, and 

Mr. NUNES) introduced the following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to repeal 

the 1-year termination of the estate tax, to increase 

the estate and gift tax unified credit, and to coordinate 

a reduction in the maximum rate of tax with a phaseout 

of the deduction for State death taxes. 

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 ‘‘Estate Tax Relief Act 

5 of 2009’’. 


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1 SEC. 2. RESTORATION OF ESTATE TAX; REPEAL OF CARRY2 OVER BASIS. 

3 (a) IN GENERAL.—The following provisions of the 

4 Economic Growth and Tax Relief Reconciliation Act of 

5 2001, and the amendments made by such provisions, are 

6 hereby repealed: 

7 (1) Subtitles A and E of title V. 

8 (2) Subsection (d), and so much of subsection 

9 (f)(3) as relates to subsection (d), of section 511. 

10 (3) Paragraph (2) of subsection (b), and para11 graph (2) of subsection (e), of section 521. 

12 The Internal Revenue Code of 1986 shall be applied as 

13 if such provisions and amendments had never been en14 acted. 

15 (b) SUNSET NOT TO APPLY.— 

16 (1) Subsection (a) of section 901 of the Eco17 nomic Growth and Tax Relief Reconciliation Act of 

18 2001 is amended by striking ‘‘this Act’’ and all that 

19 follows and inserting ‘‘this Act (other than title V) 

20 shall not apply to taxable, plan, or limitation years 

21 beginning after December 31, 2010.’’. 

22 (2) Subsection (b) of such section 901 is 

23 amended by striking ‘‘, estates, gifts, and transfers’’. 


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1 SEC. 3. INCREASE IN UNIFIED CREDIT AGAINST THE ES2 TATE TAX. 

3 (a) IN GENERAL.—The table in subsection (c) of sec4 tion 2010 of the Internal Revenue Code of 1986 (relating 

5 to applicable credit amount) is amended to read as follows: 

‘‘In the case of estates of The applicable 

decedents dying during: exclusion amount is: 

2009 .................................................................................. $3,500,000

2010 .................................................................................. $3,650,000

2011 .................................................................................. $3,800,000

2012 .................................................................................. $3,950,000

2013 .................................................................................. $4,100,000

2014 .................................................................................. $4,250,000

2015 .................................................................................. $4,400,000

2016 .................................................................................. $4,550,000

2017 .................................................................................. $4,700,000

2018 .................................................................................. $4,850,000

2019 or thereafter ............................................................. $5,000,000.’’. 

6 (b) INFLATION ADJUSTMENT.—Subsection (c) of sec7 tion 2010 of such Code, as amended by subsection (a), 

8 is amended— 

9 (1) by striking ‘‘For purposes of this section,’’ 

10 and inserting the following: 

11 ‘‘(1) IN GENERAL.—For purposes of this sec12 tion,’’, and 

13 (2) by adding at the end the following new 

14 paragraph: 

15 ‘‘(2) INFLATION ADJUSTMENT.—In the case of 

16 any decedent dying in a calendar year after 2019, 

17 the $5,000,000 amount in paragraph (1) shall be in18 creased by an amount equal to— 

19 ‘‘(A) such dollar amount, multiplied by 


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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for such calendar 

3 year, determined by substituting ‘2018’ for 

4 ‘1992’ in subparagraph (B) thereof. 

5 If any increase determined under the preceding sen6 tence is not a multiple of $10,000, such increase 

7 shall be rounded to the nearest multiple of 

8 $10,000.’’. 

9 (c) EFFECTIVE DATE.—The amendments made by 

10 this section shall apply to estates of decedents dying, and 

11 gifts made, after December 31, 2008. 

12 SEC. 4. COORDINATED REDUCTION IN MAXIMUM RATE OF 

13 TAX WITH TERMINATION OF DEDUCTION FOR 

14 STATE DEATH TAXES. 

15 (a) PHASEIN OF REDUCTION IN MAXIMUM RATE.— 

16 (1) IN GENERAL.—The table in subparagraph 

17 (B) of section 2001(c)(2) of the Internal Revenue 

18 Code of 1986 (relating to maximum rate) is amend19 ed to read as follows: 

‘‘In calendar year: The maximum rate is: 

2009 .................................................................................. 45 percent

2010 .................................................................................. 44 percent

2011 .................................................................................. 43 percent

2012 .................................................................................. 42 percent

2013 .................................................................................. 41 percent

2014 .................................................................................. 40 percent

2015 .................................................................................. 39 percent

2016 .................................................................................. 38 percent

2017 .................................................................................. 37 percent

2018 .................................................................................. 36 percent

2019 or thereafter ............................................................. 35 percent.’’. 


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1 (2) CONFORMING AND TECHNICAL AMEND2 MENTS.— 

3 (A) Section 2001(c)(2)(A) of such Code is 

4 amended by striking ‘‘after 2002 and before 

5 2010’’ and inserting ‘‘after 2008’’. 

6 (B) Section 2001(c)(2)(A)(ii) of such Code 

7 is amended by striking ‘‘subparagraph (A)’’ and 

8 inserting ‘‘clause (i)’’. 

9 (b) PHASEOUT OF DEDUCTION FOR STATE DEATH

10 TAXES.—Section 2058 of the Internal Revenue Code of 

11 1986 (relating to deduction for State death taxes) is 

12 amended by adding at the end the following: 

13 ‘‘(c) PHASEOUT.— 

14 ‘‘(1) IN GENERAL.—In the case of estates of 

15 decedents dying in a calendar year beginning after 

16 December 31, 2008, the deduction under subsection 

17 (a) shall be equal to the applicable percentage of the 

18 amount which would (but for this subsection) be the 

19 amount of such deduction. 

20 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes 

21 of paragraph (1), the applicable percentage shall be 

22 determined in accordance with the following table: 

‘‘In the case of taxes paid in calendar year: The applicable percentage 

is: 

2009 .................................................................................. 100 percent

2010 .................................................................................. 90 percent

2011 .................................................................................. 80 percent

2012 .................................................................................. 70 percent

2013 .................................................................................. 60 percent


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‘‘In the case of taxes paid in calendar year: The applicable percentage 

is: 

2014 .................................................................................. 50 percent

2015 .................................................................................. 40 percent

2016 .................................................................................. 30 percent

2017 .................................................................................. 20 percent

2018 .................................................................................. 10 percent

2019 or thereafter ............................................................. 0 percent.’’. 

1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to estates of decedents dying, and 

3 gifts made, after December 31, 2008. 

Æ 


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