I 

111TH CONGRESS 

1ST SESSION H. R. 4154 

To amend the Internal Revenue Code of 1986 to repeal the new carryover 

basis rules in order to prevent tax increases and the imposition of 

compliance burdens on many more estates than would benefit from repeal, to retain the estate tax with a $3,500,000 exemption, and for 

other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 19, 2009 

Mr. POMEROY 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 new carryover basis rules in order to prevent tax 

increases and the imposition of compliance burdens on 

many more estates than would benefit from repeal, to 

retain the estate tax with a $3,500,000 exemption, and 

for other purposes. 

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 ‘‘Permanent Estate Tax 

5 Relief for Families, Farmers, and Small Businesses Act 

6 of 2009’’. 


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

3 (a) IN GENERAL.—Subtitles A and E of title V of 

4 the Economic Growth and Tax Relief Reconciliation Act 

5 of 2001, and the amendments made by such subtitles, are 

6 hereby repealed; and the Internal Revenue Code of 1986 

7 shall be applied as if such subtitles, and amendments, had 

8 never been enacted. 

9 (b) SUNSET NOT TO APPLY.—Section 901 of the 

10 Economic Growth and Tax Relief Reconciliation Act of 

11 2001 shall not apply to title V of such Act. 

12 (c) CONFORMING AMENDMENTS.— 

13 (1) Sections 511(d) and 521(b)(2) of the Eco14 nomic Growth and Tax Relief Reconciliation Act of 

15 2001, and the amendments made by such sections, 

16 are hereby repealed; and the Internal Revenue Code 

17 of 1986 shall be applied as if such sections, and 

18 amendments, had never been enacted. 

19 (2) Subsection (c) of section 2511 of the Inter20 nal Revenue Code of 1986 is hereby repealed. 

21 SEC. 3. MODIFICATIONS TO ESTATE AND GIFT TAXES. 

22 (a) $3,500,000 APPLICABLE EXCLUSION AMOUNT.— 

23 Subsection (c) of section 2010 of the Internal Revenue 

24 Code of 1986 (relating to applicable credit amount) is 

25 amended by striking all that follows ‘‘the applicable exclu26 sion amount’’ and inserting ‘‘. For purposes of the preVerDate Nov 24 2008 02:41 Nov 21, 2009 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H4154.IH H4154

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1 ceding sentence, the applicable exclusion amount is 

2 $3,500,000.’’. 

3 (b) FREEZE MAXIMUM ESTATE AND GIFT TAX

4 RATES AT 45 PERCENT.—Subsection (c) of section 2001 

5 of such Code is amended— 

6 (1) by striking paragraph (2), 

7 (2) by striking so much of paragraph (1) as 

8 precedes the table contained therein, and 

9 (3) by striking the last 2 items in the table and 

10 inserting the following new item: 

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

$1,500,000.’’. 

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

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

13 gifts made, after December 31, 2009. 

Æ 


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