I 

118TH CONGRESS 

1ST SESSION H. R. 6498 

To amend the Internal Revenue Code of 1986 to impose a minimum tax 

on certain wealthy taxpayers that takes into account unrealized gains. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 29, 2023 

Mr. COHEN (for himself, Ms. SCHAKOWSKY, Ms. TLAIB, Mr. GARCI ́A of Illinois, Ms. KELLY of Illinois, Mr. MCGOVERN, Ms. NORTON, Mr. DAVIS

of Illinois, Mrs. WATSON COLEMAN, Ms. DELAURO, Ms. BUSH, Ms. 

TOKUDA, Ms. BARRAGA ́N, Mr. BOYLE of Pennsylvania, Ms. MCCOLLUM, 

Mr. RASKIN, Mr. GOMEZ, Ms. OCASIO-CORTEZ, Mr. NADLER, Ms. PORTER, Ms. CHU, Mr. POCAN, Mr. PASCRELL, Ms. WILD, Mr. GARAMENDI, 

Mr. SCHIFF, Mr. FOSTER, Ms. BUDZINSKI, Ms. DEAN of Pennsylvania, 

Mr. DESAULNIER, Mr. MULLIN, Mr. CASAR, Mr. GOLDMAN of New York, 

Ms. OMAR, Mr. LANDSMAN, Mr. MOULTON, Ms. SCANLON, Mrs. NAPOLITANO, Ms. JACKSON LEE, Ms. CLARKE of New York, Mr. LARSON of 

Connecticut, Ms. WILLIAMS of Georgia, Mr. HUFFMAN, Ms. HOYLE of 

Oregon, Mr. NORCROSS, Mr. CLEAVER, Ms. SA ́NCHEZ, Ms. WATERS, Mr. 

CARSON, Mr. TAKANO, Mr. EVANS, Mr. CARTER of Louisiana, Mr. GRIJALVA, Mrs. TRAHAN, Mr. TRONE, Ms. KAPTUR, Ms. LEE of California, 

Mr. LIEU, Ms. TITUS, Mr. FROST, and Mr. KEATING) 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 impose 

a minimum tax on certain wealthy taxpayers that takes 

into account unrealized gains. 

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


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Billionaire Minimum 

3 Income Tax Act’’. 

4 SEC. 2. MINIMUM TAX ON CERTAIN WEALTHY TAXPAYERS. 

5 (a) IN GENERAL.—Subtitle A of the Internal Rev6 enue Code of 1986 is amended by inserting after chapter 

7 4 the following new chapter: 

8 ‘‘CHAPTER 5—MINIMUM TAX ON CERTAIN 

9 WEALTHY TAXPAYERS 

‘‘Sec. 1481. Minimum tax on certain wealthy taxpayers. 

‘‘Sec. 1482. Certain otherwise exempt transfers by certain wealthy taxpayers 

treated as taxable. 

10 ‘‘SEC. 1481. MINIMUM TAX ON CERTAIN WEALTHY TAX11 PAYERS. 

12 ‘‘(a) IN GENERAL.—In the case of an applicable tax13 payer, there is hereby imposed (in addition to any other 

14 tax imposed by this subtitle) for each taxable year a tax 

15 equal to the excess (if any) of— 

16 ‘‘(1) 25 percent of the sum of— 

17 ‘‘(A) the taxpayer’s taxable income for 

18 such taxable year, plus 

19 ‘‘(B) the taxpayer’s net unrealized gain for 

20 such taxable year, over 

21 ‘‘(2) the sum of— 

22 ‘‘(A) the taxpayer’s minimum tax account 

23 balance for such taxable year, plus 


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1 ‘‘(B) the taxpayer’s regular tax liability (as 

2 defined in section 26(b)) for such taxable year. 

3 ‘‘(b) LIMITATION ON MINIMUM TAX.—The tax im4 posed under subsection (a) with respect to any applicable 

5 taxpayer (other than an applicable taxpayer described in 

6 subsection (c)(1)(B)) for any taxable year shall not exceed 

7 40 percent of the excess described in subsection (c)(1)(A) 

8 with respect to such taxpayer for such taxable year. 

9 ‘‘(c) APPLICABLE TAXPAYER.—For purposes of this 

10 section— 

11 ‘‘(1) IN GENERAL.—The term ‘applicable tax12 payer’ means— 

13 ‘‘(A) any individual for any taxable year if 

14 the taxpayer’s net worth for such taxable year 

15 exceeds $100,000,000 (half such amount in the 

16 case of a married individual filing a separate re17 turn), and 

18 ‘‘(B) any trust or estate treated as an ap19 plicable taxpayer under subsection (g). 

20 ‘‘(2) NET WORTH.—The term ‘net worth’ 

21 means, with respect to any taxpayer for any taxable 

22 year, the excess (if any), determined as of the close 

23 of such taxable year, of— 

24 ‘‘(A) the estimated value of all assets of 

25 the taxpayer and all trust attributed assets of 


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1 the taxpayer, as determined under regulations 

2 provided by the Secretary, over 

3 ‘‘(B) all debts (and such other liabilities as 

4 the Secretary may provide) of the taxpayer and 

5 all trust attributed debts of the taxpayer. 

6 ‘‘(3) TRUST ATTRIBUTED ASSETS.—The term 

7 ‘trust attributed assets’ means, with respect to any 

8 taxpayer— 

9 ‘‘(A) any asset of a trust which such tax10 payer is treated as owning under subpart E of 

11 part I of subchapter J of chapter 1, and 

12 ‘‘(B) any asset of a trust (other than a 

13 trust which a person other than the taxpayer is 

14 treated as owning under such subpart) that is 

15 distributable to the taxpayer or from which in16 come is distributable to the taxpayer in whole 

17 or in part, whether or not the taxpayer’s dis18 tribution rights are subject to a contingency, 

19 unless that contingency is the death of another 

20 trust beneficiary. 

21 ‘‘(4) TRUST ATTRIBUTED DEBTS.—The term 

22 ‘trust attributed debts’ means, with respect to any 

23 taxpayer— 


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1 ‘‘(A) any debt (and such other liabilities as 

2 the Secretary may provide) of a trust described 

3 in paragraph (3)(A), and 

4 ‘‘(B) any debt (and such other liabilities as 

5 the Secretary may provide) with respect to an 

6 asset described in paragraph (3)(B) if the hold7 ers of such debt have a right to repayment 

8 which is senior to the distribution rights of the 

9 taxpayer. 

10 ‘‘(5) GRATUITOUS TRANSFERS.— 

11 ‘‘(A) IN GENERAL.—In the case of any 

12 asset which was transferred by the taxpayer 

13 during the 5-year period ending with the close 

14 of the taxable year for which the taxpayer’s net 

15 worth is determined (and which is not otherwise 

16 taken into account in determining such net 

17 worth), such taxpayer’s net worth (as deter18 mined for purposes of this section) shall be— 

19 ‘‘(i) increased by the value of such 

20 transferred asset at the time of transfer, 

21 ‘‘(ii) decreased (but not in excess of 

22 the amount of the increase under clause 

23 (i)) by the amount paid in consideration 

24 for such asset by the transferee, 


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1 ‘‘(iii) in the case of any decrease 

2 under clause (ii), increased to the extent of 

3 any liability of the transferee to the trans4 feror or related party (as defined under 

5 section 267(b)) of the transferor, incurred 

6 in connection with the transfer of such 

7 asset, to the extent that the right to collect 

8 such liability is not already reflected in the 

9 net wealth of the transferor, and 

10 ‘‘(iv) increased by the value of any 

11 such transferred asset transferred with a 

12 purpose that was in substantial part to 

13 avoid tax, to the extent not already in14 cluded as an increase under clause (i) or 

15 (iii). 

16 ‘‘(B) EXCEPTIONS.—Subparagraph (A) 

17 shall not apply with respect to any transfer of 

18 an asset to— 

19 ‘‘(i) an organization described in sec20 tion 170(c), 

21 ‘‘(ii) a spouse or former spouse if sec22 tion 1041 applies to such transfer, or 

23 ‘‘(iii) a spouse if both spouses are ap24 plicable taxpayers at the time of such 

25 transfer. 


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1 ‘‘(C) SPECIAL RULE REGARDING TRANS2 FER TO AVOID TAX.—For purposes of subpara3 graph (A)(iv), if one or more transfers of assets 

4 would (but for this sentence) reduce the tax im5 posed under this section and the taxpayer re6 tains a substantial degree of control over such 

7 assets, the purpose of such transfers shall be 

8 treated as avoidance of tax unless the taxpayer 

9 shows otherwise by clear and convincing evi10 dence. 

11 ‘‘(d) MINIMUM TAX ACCOUNT BALANCE.—For pur12 poses of this section, the term ‘minimum tax account bal13 ance’ means, with respect to any taxpayer for any taxable 

14 year, the excess (if any) of— 

15 ‘‘(1) the aggregate amount of tax imposed 

16 under this section with respect to the taxpayer for 

17 all prior taxable years, over 

18 ‘‘(2) the sum of— 

19 ‘‘(A) the aggregate credits allowed under 

20 sections 25F and 36C with respect to the tax21 payer for all prior taxable years, and 

22 ‘‘(B) the aggregate reductions described in 

23 subsection (h)(6) with respect to the taxpayer 

24 for all prior taxable years. 

25 ‘‘(e) NET UNREALIZED GAIN.— 


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1 ‘‘(1) IN GENERAL.—For purposes of this sec2 tion, the term ‘net unrealized gain’ means, with re3 spect to any taxpayer for any taxable year, the ex4 cess (if any) of— 

5 ‘‘(A) the aggregate gains which would be 

6 recognized if such taxpayer sold each asset held 

7 at the close of such taxable year (including any 

8 asset described in subsection (c)(3)(A)) for such 

9 asset’s estimated value at such time, over 

10 ‘‘(B) the aggregate losses which would be 

11 so recognized. 

12 ‘‘(2) ESTIMATED VALUE.—For purposes of this 

13 section— 

14 ‘‘(A) IN GENERAL.—Except as otherwise 

15 provided in this subsection, the term ‘estimated 

16 value’ means fair market value determined in 

17 such manner as the Secretary may provide. 

18 ‘‘(B) NON-READILY TRADABLE ASSETS.— 

19 ‘‘(i) DEFAULT METHOD.—In the ab20 sence of regulations or other guidance 

21 under clause (iii) or (iv) (and only in such 

22 absence), the estimated value of a non23 readily tradable asset shall be determined 

24 by beginning with the greatest (determined 

25 after adjustment under clause (ii)) of— 


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1 ‘‘(I) the original basis amount, 

2 ‘‘(II) the adjusted cost basis 

3 amount, or 

4 ‘‘(III) the most recent fair mar5 ket valuation amount. 

6 ‘‘(ii) ADJUSTMENT FOR DEEMED AP7 PRECIATION.—Each amount described in 

8 subclauses (I), (II), and (III) of clause (i) 

9 shall be separately increased by a rate of 

10 appreciation equal to the sum of— 

11 ‘‘(I) the annual rate of interest 

12 determined by the Secretary to be 

13 equivalent to the average of the 5-year 

14 constant maturity Treasury yields, as 

15 published by the Board of Governors 

16 of the Federal Reserve System, for 

17 the 5-year period ending on Sep18 tember 30 of the calendar year ending 

19 before the date with respect to which 

20 the estimated value is determined, 

21 plus 

22 ‘‘(II) 2 percentage points, 

23 for the period beginning on the date with 

24 respect to which such amount relates and 


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1 ending on the date with respect to which 

2 the estimated value is determined. 

3 ‘‘(iii) REGULATIONS.—In the case of 

4 any non-readily tradable asset, the esti5 mated value of such asset shall be deter6 mined by such method as the Secretary 

7 may prescribe in regulations or other guid8 ance. Such method may require a single 

9 valuation method with respect to any such 

10 asset or may provide one or more options 

11 for valuing any such asset and may (but is 

12 not required to) include one or more of the 

13 following: 

14 ‘‘(I) Required formulaic valu15 ations based on any of the original 

16 basis amount (grossed up by a for17 mula), other adjusted cost basis 

18 amounts (potentially adjusted by a 

19 formula), most recent fair market 

20 valuation amount (grossed up by a 

21 formula), or formulaic multiple of 

22 book value or other financial state23 ment valuation. 

24 ‘‘(II) Any valuation method uti25 lized with respect to illiquid taxpayers 


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1 under subsection (f), including any 

2 method under the special valuation re3 gime and the rule that a valuation 

4 may be challenged by the taxpayer 

5 only upon a showing of clear and con6 vincing error. 

7 ‘‘(iv) CERTAIN REQUIRED APPLICA8 TIONS OF ILLIQUID TAXPAYER RULES.— 

9 The Secretary may issue regulations or 

10 other guidance which require certain tax11 payers which hold one or more non-readily 

12 tradable assets to apply one or more of the 

13 rules applicable to illiquid taxpayers under 

14 paragraph (4) and subsection (h) (without 

15 regard to whether the taxpayer makes the 

16 election described in paragraph (4) or any 

17 election under subsection (h)) with respect 

18 to all or any portion of such assets. The 

19 Secretary may require calculation and pay20 ment of estimated annual taxes on such as21 sets to the extent that the Secretary deter22 mines that doing so would best advance 

23 the goal of minimizing gaming by tax24 payers. 


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1 ‘‘(v) RECAPTURE OF DEPRECIATION

2 AND AMORTIZATION PERMITTED.—Nothing 

3 in this subsection shall be construed to 

4 prevent the determination of gains and 

5 losses for purposes of this subsection with 

6 respect to any asset on the basis of the ad7 justed basis of such asset (after taking into 

8 account any reductions in such basis for 

9 depreciation or amortization). 

10 ‘‘(3) NON-READILY TRADABLE ASSET.—For 

11 purposes of this section, the term ‘non-readily 

12 tradable asset’ means any asset which is part of any 

13 class of assets with respect to which the Secretary 

14 has determined that mandatory annual valuations 

15 are inappropriate for purposes of this section. 

16 ‘‘(4) ILLIQUID TAXPAYERS.— 

17 ‘‘(A) IN GENERAL.—In the case of an il18 liquid taxpayer which makes the election de19 scribed in subparagraph (B)— 

20 ‘‘(i) the net unrealized gain of such 

21 taxpayer shall be determined by only tak22 ing into account the unrealized gains (and 

23 losses) on assets other than non-readily 

24 tradable assets, and 


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1 ‘‘(ii) such taxpayer shall be subject to 

2 the requirements of subsection (f) with re3 spect to all non-readily tradable assets held 

4 by the taxpayer. 

5 ‘‘(B) ILLIQUID TAXPAYER.—For purposes 

6 of this subsection, the term ‘illiquid taxpayer’ 

7 means any taxpayer for any taxable year if the 

8 estimated value of all assets other than non9 readily tradable assets of the taxpayer as of the 

10 close of such taxable year does not exceed 20 

11 percent of the taxpayer’s net worth for such 

12 taxable year. 

13 ‘‘(C) ELECTION.—Any election made 

14 under this paragraph shall be made at such 

15 time and in such manner as the Secretary may 

16 provide and, once made with respect to any 

17 asset, may be revoked only with the consent of 

18 the Secretary (and subject to such requirements 

19 as the Secretary may provide to ensure proper 

20 taxation of gains and losses with respect to 

21 such assets). If the Secretary determines that it 

22 is consistent with the purposes of this section, 

23 the Secretary may permit an illiquid taxpayer 

24 to elect to apply this paragraph (and subsection 

25 (f)) with respect to such portion of non-readily 


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1 tradable assets of the taxpayer as the Secretary 

2 determines is consistent with such purposes. 

3 ‘‘(f) SPECIAL LIMITED DEFERRAL OPTION AC4 COUNTS.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall issue 

6 regulations or other guidance under which, in the 

7 case of any taxpayer subject to the requirements of 

8 this subsection (including by reason of subsection 

9 (e)(2)(B)(iv) or (e)(4) or paragraph (2)(K) of this 

10 subsection), the taxpayer’s tax liability under this 

11 section, and the timing of any such liability, with re12 spect to any non-readily tradable assets held by such 

13 taxpayer are determined on the basis of the Special 

14 Limited Deferral Option account rules prescribed by 

15 the Secretary under this subsection. 

16 ‘‘(2) SPECIAL LIMITED DEFERRAL OPTION AC17 COUNT RULES.—The Special Limited Deferral Op18 tion account rules prescribed by the Secretary under 

19 this subsection shall, except as otherwise provided by 

20 the Secretary, be consistent with the following: 

21 ‘‘(A) Any taxpayer subject to this sub22 section shall be treated as having an Special 

23 Limited Deferral Option account (hereafter in 

24 this subsection referred to as an ‘SLDO ac25 count’) which consists of the non-readily 


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1 tradable assets held by such taxpayer (or, as 

2 the case may be, to the portion of such assets 

3 described in subsection (e)(2)(B)(iv) or 

4 (e)(4)(C)) (hereafter in this subsection referred 

5 to as the ‘SLDO assets’). 

6 ‘‘(B) Except as provided in subparagraph 

7 (K)— 

8 ‘‘(i) in the case of the first year in 

9 which a taxpayer becomes subject to this 

10 subsection and so has assets in the SLDO 

11 account, the notional interest percentage of 

12 the SLDO account shall be 25 percent (0 

13 percent in the case of a taxpayer which 

14 elects to recognize all unrealized gains of 

15 all assets in the SLDO account upon initi16 ation of the SLDO account), and 

17 ‘‘(ii) at the end of the first year in 

18 which a taxpayer becomes subject to this 

19 subsection and so has assets in the SLDO 

20 account and at the end of each subsequent 

21 year during which the taxpayer continues 

22 to be subject to this subsection and have 

23 assets in the SLDO account, the notional 

24 interest percentage of the SLDO account 


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1 shall be increased annually by an amount 

2 equal to the product of— 

3 ‘‘(I) the deemed rate of return 

4 multiplied by 25 percent, multiplied 

5 by 

6 ‘‘(II) 1 minus the notional inter7 est percentage immediately prior to 

8 the increase. 

9 ‘‘(C) The deemed rate of return for pur10 poses of subparagraph (B)(ii)(I) shall be the es11 timated investment rate of return for the entire 

12 economy as determined by the Secretary, or if 

13 the Secretary provides that the notional interest 

14 percentage should be determined separately 

15 with respect to any class of assets, such other 

16 rate of return as the Secretary determines ap17 propriate for such asset class. 

18 ‘‘(D) Any sale, or other transfer, of any 

19 SLDO asset shall be treated as a distribution 

20 from the SLDO account, except that the Sec21 retary shall provide rules for treating transfers 

22 made in the ordinary course of a trade or busi23 ness and exchanges of non-readily tradable as24 sets as other than distributions. 


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1 ‘‘(E) Except as otherwise provided by the 

2 Secretary, an increase in debt shall be treated 

3 as a distribution from the SLDO account and 

4 any subsequent decrease in debt shall be taken 

5 into account as a reduction in distributions 

6 from the SLDO account or as a credit against 

7 tax (as the Secretary determines appropriate). 

8 ‘‘(F) Any distribution from the SLDO ac9 count shall result in an increase in the taxable 

10 income of the taxpayer equal to the product of 

11 the estimated value of the distribution multi12 plied by the notional interest percentage at the 

13 time of the distribution. 

14 ‘‘(G) A taxpayer may elect to pay liabilities 

15 under this subsection in advance and proper 

16 credit shall be provided for any such liabilities 

17 so paid in advance upon resolution of the 

18 SLDO account. 

19 ‘‘(H) The Secretary shall establish a spe20 cial valuation regime for purposes of deter21 mining the estimated value of any distribution 

22 of a non-tradable asset from a SLDO account. 

23 Such special valuation regime shall ensure valu24 ation accuracy, minimize the potential for 

25 under-valuation, and minimize the potential for 


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1 taxpayer gaming. Such regime may include the 

2 use of appraisers employed by the Secretary, 

3 formulaic valuations, or any other method de4 signed to ensure valuation accuracy and mini5 mize the potential for gaming. Any estimated 

6 value determined under such special valuation 

7 regime may be challenged by the taxpayer only 

8 upon a showing of clear and convincing error. 

9 In place of the standard due process safe10 guards, a taxpayer may opt to reject such spe11 cial valuations (under rules and procedures to 

12 be determined by the Secretary) and instead 

13 maintain the non-tradable asset within a SLDO 

14 account. 

15 ‘‘(I) If a taxpayer is subject to the require16 ments of this subsection with respect to any as17 sets, such taxpayer shall remain subject to the 

18 requirements of this subsection (without regard 

19 to whether or not such taxpayer ceases to be an 

20 applicable taxpayer) until the SLDO account is 

21 resolved and all liabilities with respect to such 

22 SLDO account have been paid. For purposes of 

23 this subsection, an SLDO account shall be 

24 treated as resolved upon the death of the tax25 payer, the distribution of all assets of the 


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1 SLDO account, a determination by the Sec2 retary that further treatment as a SLDO ac3 count is inconsistent with the purposes of this 

4 section, or a determination by the Secretary de5 scribed in subparagraph (J). 

6 ‘‘(J) If the Secretary determines, upon ap7 plication by the taxpayer, that the resolution of 

8 a SLDO account is not inconsistent with the 

9 purposes of this section— 

10 ‘‘(i) all remaining assets of such 

11 SLDO account shall be treated as distrib12 uted, and 

13 ‘‘(ii) such SLDO account shall be 

14 treated as resolved. 

15 ‘‘(K) Upon the resolution of the SLDO ac16 count, there shall be imposed on the taxpayer a 

17 tax (or a refund of taxes previously paid may 

18 be awarded) as determined by the Secretary by 

19 applying a retrospective formula determined by 

20 the Secretary to eliminate the entire tax advan21 tage of deferral. Such tax shall be determined 

22 in a manner to take into account prior distribu23 tions from the SLDO account and any tax pre24 viously imposed thereon and any liability under 


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1 this subsection which is paid in advance under 

2 subparagraph (G). 

3 ‘‘(L) If, upon the death of a taxpayer, an 

4 heir of SLDO assets elects to initiate a carry5 over SLDO account for such inherited assets— 

6 ‘‘(i) such assets shall not be taken 

7 into account under subparagraph (J) upon 

8 the resolution of the decedent’s SLDO ac9 count, 

10 ‘‘(ii) such heir’s carry-over SLDO ac11 count shall begin with a notional interest 

12 percentage equal to that of the decedent’s 

13 SLDO account at the time of death, and 

14 ‘‘(iii) such carry-over SLDO account 

15 shall be maintained separately from any 

16 SLDO account otherwise maintained by 

17 such heir. 

18 ‘‘(g) TREATMENT OF TRUSTS AND ESTATES AS AP19 PLICABLE TAXPAYERS.—For purposes of this chapter— 

20 ‘‘(1) IN GENERAL.—Any trust (other than a 

21 trust the assets of which are treated as owned by 

22 another taxpayer under subpart E of part I of sub23 chapter J of chapter 1) or applicable estate shall be 

24 treated as an applicable taxpayer for purposes of 

25 this chapter if any assets of the trust are trust atVerDate Sep 11 2014 22:12 Dec 06, 2023 Jkt 049200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498

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1 tributed assets with respect to any applicable tax2 payer. 

3 ‘‘(2) APPLICABLE ESTATE.—An estate is an ap4 plicable estate if the decedent was an applicable tax5 payer for any taxable year ending during the 5-year 

6 period ending on the date of the decedent’s death, 

7 except that such estate shall not be treated as an 

8 applicable taxpayer for any taxable year beginning 

9 before the third taxable year following the date of 

10 the decedent’s death. 

11 ‘‘(3) TRUSTS ACQUIRING UNITED STATES

12 BENEFICIARIES.— 

13 ‘‘(A) IN GENERAL.—If paragraph (1) ap14 plies to a trust for a transferor or beneficiary’s 

15 taxable year, and paragraph (1) would have ap16 plied to the trust for any of the preceding 10 

17 taxable years (other than years prior to the ef18 fective date of this section) but for the fact that 

19 in such year or years there was no United 

20 States beneficiary for any portion of the trust, 

21 then the transferor shall be treated as having 

22 income for the taxable year equal to— 

23 ‘‘(i) the aggregate increases in the tax 

24 imposed under this title for each such prior 

25 taxable year (beginning after the date of 


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1 the enactment of this chapter) which would 

2 have occurred if paragraph (1) had applied 

3 to such trust for such year, plus 

4 ‘‘(ii) interest on such increase deter5 mined with respect to each such taxable 

6 year determined at the underpayment rate. 

7 ‘‘(B) NO LIVING TRANSFEROR.—In the 

8 event that subparagraph (A) would apply, but 

9 for the fact that there is no living transferor, 

10 then each beneficiary of such trust, other than 

11 a contingent beneficiary, shall be treated as 

12 having income for the taxable year equal to— 

13 ‘‘(i) the aggregate increases in the tax 

14 imposed under this title for each such prior 

15 taxable year (beginning after the date of 

16 the enactment of this chapter) which would 

17 have occurred if paragraph (1) had applied 

18 to such trust, but only to the extent of 

19 such increases in tax which would have oc20 curred with respect to such portion of trust 

21 assets as are distributable to the bene22 ficiary, or such portion of trust income as 

23 is distributable to the beneficiary (whether 

24 or not such assets or income are so distrib25 uted), plus 


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1 ‘‘(ii) interest on such increase deter2 mined with respect to each such taxable 

3 year determined at the underpayment rate. 

4 ‘‘(C) CONTINGENT BENEFICIARIES.—In 

5 the event that no tax is imposed on a bene6 ficiary under subparagraph (B) because such 

7 beneficiary is contingent, then in the first tax8 able year in which such beneficiary is no longer 

9 contingent, such beneficiary shall be treated as 

10 having income for the taxable year equal to the 

11 amount that would have been imposed under 

12 subparagraph (B), plus interest on such in13 crease determined with respect to each such 

14 taxable year determined at the underpayment 

15 rate, but in no case will such tax and interest 

16 be imposed with respect to any portion of trust 

17 assets or income previously subject to tax under 

18 this section. 

19 ‘‘(D) CONTINGENT.—For purposes of this 

20 paragraph, a beneficiary’s interest in a trust 

21 shall be treated as contingent if (and only if) 

22 such interest depends on the outcome of uncer23 tain future events (other than the discretion of 

24 the trustee to determine the timing of the dis25 tribution of income). 


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1 ‘‘(h) ELECTION TO PAY LIABILITY IN INSTALL2 MENTS.— 

3 ‘‘(1) IN GENERAL.—A taxpayer may elect to 

4 pay the tax imposed under subsection (a) or (g) for 

5 any taxable year in 5 equal annual installments (in 

6 the case of the taxpayer’s first taxable year begin7 ning in 2023, 9 equal annual installments). 

8 ‘‘(2) DATE FOR PAYMENT OF INSTALLMENTS.— 

9 If an election is made under paragraph (1), the first 

10 installment shall be paid on or before the due date 

11 (determined without regard to any extension of time 

12 for filing the return) for the return of tax for the 

13 taxable year described in subsection (a) and each 

14 succeeding installment shall be paid on or before the 

15 due date (as so determined) for the return of tax for 

16 the taxable year following the taxable year with re17 spect to which the preceding installment was made. 

18 ‘‘(3) ACCELERATION OF PAYMENT.— 

19 ‘‘(A) IN GENERAL.—If there is an addition 

20 to tax for failure to timely pay any installment 

21 required under this subsection (other than by 

22 reason of a timely election made under para23 graph (5)), a bankruptcy of the taxpayer (in24 cluding in a title 11 or similar case), or any 

25 similar circumstance, then the unpaid portion 


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1 of all remaining installments shall be due on 

2 the date of such event (or in the case of a title 

3 11 or similar case, the day before the petition 

4 is filed). 

5 ‘‘(B) PAYMENT WITHIN 6 MONTHS.—In 

6 the case of the payment of any installment re7 quired under this subsection during the 6- 

8 month period beginning on the due date of such 

9 installment, subparagraph (A) shall not apply 

10 and rules similar to the rules of section 

11 6166(g)(3)(B) shall apply. 

12 ‘‘(4) PRORATION OF DEFICIENCY TO INSTALL13 MENTS.—If an election is made under paragraph (1) 

14 to pay tax imposed under subsection (a) in install15 ments and a deficiency has been assessed with re16 spect to such tax, the deficiency shall be prorated to 

17 the installments payable under paragraph (1). The 

18 part of the deficiency so prorated to any installment 

19 the date for payment of which has not arrived shall 

20 be collected at the same time as, and as a part of, 

21 such installment. The part of the deficiency so pro22 rated to any installment the date for payment of 

23 which has arrived shall be paid upon notice and de24 mand from the Secretary. This subsection shall not 

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1 tional disregard of rules and regulations, or to fraud 

2 with intent to evade tax. 

3 ‘‘(5) ELECTION.—Any election under paragraph 

4 (1) shall be made at such time and in such manner 

5 as the Secretary shall provide. 

6 ‘‘(6) REDUCTION OF INSTALLMENT PAYMENTS

7 TO EXTENT MINIMUM ACCOUNT BALANCE IS IN EX8 CESS OF EXPECTED RECOGNIZED GAIN.—If the min9 imum account balance of the taxpayer for any tax10 able year (reduced by the amount of any credit al11 lowed under section 25F for such taxable year) ex12 ceeds 25 percent of the taxpayer’s net unrealized 

13 gain for such taxable year, such excess shall be ap14 plied to reduce the amount of any installment pay15 ments of the taxpayer the date for payment of which 

16 has not yet arrived (without regard to the taxable 

17 year to which such installment payment relates). 

18 Any reduction under the preceding sentence shall be 

19 applied to installment payments on a last-due, first20 reduced basis. 

21 ‘‘(i) INFORMATION REPORTING.—The Secretary 

22 shall, not later than 1 year after the date of the enactment 

23 of this section, issue regulations— 

24 ‘‘(1) requiring such persons as the Secretary 

25 determines appropriate to file a return with the SecVerDate Sep 11 2014 22:12 Dec 06, 2023 Jkt 049200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H6498.IH H6498

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1 retary which include such information as the Sec2 retary determines necessary to carry out this sec3 tion, including the provision of applicable financial 

4 statements (within the meaning of section 451(b)), 

5 other financial or accounting statements, insurance 

6 valuations, or similar documents, and 

7 ‘‘(2) requiring persons required to file returns 

8 under paragraph (1) to furnish statements to such 

9 other persons as the Secretary determines appro10 priate which contain all or a portion of the informa11 tion contained in such return. 

12 ‘‘(j) REGULATIONS.—The Secretary shall issue such 

13 regulations or other guidance as may be necessary or ap14 propriate to carry out the purposes this section and sec15 tions 25F and 36C, including regulations or other guid16 ance to— 

17 ‘‘(1) require reporting of basis and estimated 

18 value of assets, aggregated by asset class or other19 wise, held by the applicable taxpayer, and liabilities 

20 of the applicable taxpayer, as of the close of the tax21 able year, in such manner as the Secretary may pro22 vide, 

23 ‘‘(2) discourage applicable taxpayers from inap24 propriately converting assets into assets which are 

25 non-readily tradable assets, 


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1 ‘‘(3) treat assets held directly or indirectly by 

2 the applicable taxpayer as held by the applicable tax3 payer, 

4 ‘‘(4) in such circumstances as the Secretary de5 termines there is a reasonable risk of an intent to 

6 avoid tax, treat assets owned or controlled by per7 sons related to the applicable taxpayer as owned by 

8 the applicable taxpayer, 

9 ‘‘(5) provide for the application of such sections 

10 with respect to married individuals, including rules 

11 with respect to— 

12 ‘‘(A) individuals whose marital or joint re13 turn filing status changes, and 

14 ‘‘(B) the transfer of an individual’s min15 imum tax account balance to the individual’s 

16 spouse or otherwise upon the death of such in17 dividual, 

18 ‘‘(6) provide that the tax imposed under this 

19 section shall not be taken into account in deter20 mining the amount of any required payment of esti21 mated tax or in satisfying the safe harbor to avoid 

22 a penalty for the underpayment of estimated tax, 

23 and 

24 ‘‘(7) if the Secretary determines appropriate to 

25 carry out the purposes of this section, provide for 


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1 the separate application of such sections with re2 spect to different classes of assets. 

3 ‘‘(k) STANDARDS FOR MAKING CERTAIN DETER4 MINATIONS.—For purposes of making any determination 

5 described in subsection (e)(2)(A), (e)(2)(B)(iii), (e)(3), 

6 (f)(2)(C), or (f)(2)(D), the Secretary shall balance the 

7 goals of ensuring valuation accuracy, minimizing the po8 tential for taxpayer gaming, and avoiding unduly excessive 

9 compliance and administrative costs. 

10 ‘‘SEC. 1482. CERTAIN OTHERWISE EXEMPT TRANSFERS BY 

11 CERTAIN WEALTHY TAXPAYERS TREATED AS 

12 TAXABLE. 

13 ‘‘(a) IN GENERAL.—Notwithstanding any other pro14 vision of this title, in the case of any specified transfer 

15 by a covered taxpayer, gain shall be recognized by such 

16 covered taxpayer in an amount equal to the excess (if any) 

17 of the estimated value (as defined in section 1481(e)(2)) 

18 of the property transferred over the adjusted basis of such 

19 property. 

20 ‘‘(b) SPECIFIED TRANSFER.—For purposes of this 

21 section, the term ‘specified transfer’ means any gift, chari22 table contribution, bequest, or other transfer upon death. 

23 ‘‘(c) COVERED TAXPAYER.—For purposes of this sec24 tion, the term ‘covered taxpayer’ means, with respect to 

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1 payer for such taxable year or was an applicable taxpayer 

2 for any of the 10 taxable years immediately preceding such 

3 taxable year. 

4 ‘‘(d) REGULATIONS.—The Secretary shall issue such 

5 regulations or other guidance as may be necessary or ap6 propriate to carry out the purposes of this section, includ7 ing regulations or other guidance that provide for excep8 tions with respect to— 

9 ‘‘(1) transfers which are de minimis or which 

10 otherwise do not pose a risk of circumventing the 

11 purposes of this chapter, and 

12 ‘‘(2) taxpayers which do not pose such a risk.’’. 

13 (b) CREDIT AGAINST TAXES ON RECOGNIZED

14 GAINS.—Subpart A of part IV of subchapter A of chapter 

15 1 of the Internal Revenue Code of 1986 is amended by 

16 inserting after section 25E the following new section: 

17 ‘‘SEC. 25F. MINIMUM TAX ON CERTAIN WEALTHY TAX18 PAYERS CREDITED AGAINST RECOGNIZED 

19 GAINS. 

20 ‘‘In the case of an individual (including any estate 

21 or trust), there shall be allowed as a credit against the 

22 tax imposed by this chapter for the taxable year an 

23 amount equal to the lesser of— 

24 ‘‘(1) the taxpayer’s minimum tax account bal25 ance (as defined in section 1481) for such taxable 


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1 year determined, in the case of any tax imposed 

2 under section 1481 with respect to which an election 

3 is made under such section to pay such tax in in4 stallments, by only taking into account so much of 

5 such tax as has been paid as of the close of such 

6 taxable year, and 

7 ‘‘(2) the excess (if any) of— 

8 ‘‘(A) the taxpayer’s regular tax (as defined 

9 in section 26(b)) for such taxable year, over 

10 ‘‘(B) the amount which would be deter11 mined under subparagraph (A) if the taxpayer 

12 did not recognize any gain or loss for such tax13 able year.’’. 

14 (c) REFUND OF EXCESS MINIMUM TAX ON CERTAIN

15 WEALTHY TAXPAYERS.—Subpart C of part IV of sub16 chapter A of chapter 1 of the Internal Revenue Code of 

17 1986 is amended by inserting after section 36B the fol18 lowing new section: 

19 ‘‘SEC. 36C. CREDIT FOR EXCESS MINIMUM TAX ON CERTAIN 

20 WEALTHY TAXPAYERS. 

21 ‘‘In the case of an individual (including any estate 

22 or trust), there shall be allowed as a credit against the 

23 tax imposed by this subtitle for any taxable year an 

24 amount equal to the excess (if any) of— 


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1 ‘‘(1) the amount described in section 25F(1) for 

2 such taxable year, over 

3 ‘‘(2) the sum of— 

4 ‘‘(A) 25 percent of the taxpayer’s net unre5 alized gain (as defined in section 1481) for such 

6 taxable year, 

7 ‘‘(B) the aggregate credits allowed under 

8 section 25F for such taxable year and all prior 

9 taxable years, and 

10 ‘‘(C) the aggregate reductions determined 

11 under section 1481(h)(6) for such taxable year 

12 and all prior taxable years.’’. 

13 (d) PENALTIES FOR FAILURE TO REPORT.— 

14 (1) RETURNS.—Section 6724(d)(1)(D) of the 

15 Internal Revenue Code of 1986 is amended by in16 serting ‘‘1481(i)(1) or’’ before ‘‘6055’’. 

17 (2) STATEMENTS.—Section 6724(d)(2) of such 

18 Code is amended— 

19 (A) in subparagraph (II), by striking ‘‘or’’ 

20 at the end, 

21 (B) in the first subparagraph (JJ), by 

22 striking the period at the end and inserting a 

23 comma, 

24 (C) in the second subparagraph (JJ)— 


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1 (i) by redesignating such subpara2 graph as subparagraph (KK), and 

3 (ii) by striking the period at the end 

4 and inserting ‘‘, or’’, and 

5 (D) by adding at the end the following new 

6 subparagraph: 

7 ‘‘(LL) section 1481(i)(2) (relating to state8 ments relating to minimum tax on certain 

9 wealthy taxpayers).’’. 

10 (e) CONFORMING AMENDMENTS.— 

11 (1) Section 6211(b)(4)(A) of the Internal Rev12 enue Code of 1986 is amended by inserting ‘‘36C,’’ 

13 after ‘‘36B,’’. 

14 (2) Paragraph (2) of section 1324(b) of title 

15 31, United States Code, is amended by inserting 

16 ‘‘36C,’’ after ‘‘36B,’’. 

17 (3) The table of chapters for subtitle A of the 

18 Internal Revenue Code of 1986 is amended by in19 serting after the item relating to chapter 4 the fol20 lowing new item: 

‘‘CHAPTER 5. MINIMUM TAX ON CERTAIN WEALTHY TAXPAYERS.’’. 

21 (4) The table of sections for subpart A of part 

22 IV of subchapter A of chapter 1 of the Internal Rev23 enue Code of 1986 is amended by inserting after the 

24 item relating to section 25E the following new item: 


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‘‘Sec. 25F. Minimum tax on certain wealthy taxpayers credited against recognized gains.’’. 

1 (5) The table of sections for subpart C of part 

2 IV of subchapter A of chapter 1 of the Internal Rev3 enue Code of 1986 is amended by inserting after the 

4 item relating to section 36B the following new item: 

‘‘Sec. 36C. Credit for excess minimum tax on certain wealthy taxpayers.’’. 

5 (f) SENSE OF CONGRESS REGARDING STATE RESI6 DENCY RULES.—It is the sense of Congress that the tax7 ation by the several States of extreme wealth is in the pub8 lic interest and that silence on the part of Congress shall 

9 not be construed to impose any barrier to the use of rea10 sonable residency rules, including such rules that appor11 tion a tax on deemed sales or extreme wealth over no more 

12 than five years, by the several States or the District of 

13 Columbia. 

14 (g) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 the date of the enactment of this Act. 

Æ 


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