I 

109TH CONGRESS 

1ST SESSION H. R. 1574 

To amend the Internal Revenue Code of 1986 and the Economic Growth 

and Tax Relief Reconciliation Act of 2001 to restore the estate tax 

and repeal the carryover basis rule and to increase the estate tax unified 

credit to an exclusion equivalent of $3,500,000. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 12, 2005 

Mr. MOORE of Kansas (for himself and Mr. CASE) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 and the Economic Growth and Tax Relief Reconciliation Act of 2001 

to restore the estate tax and repeal the carryover basis 

rule and to increase the estate tax unified credit to 

an exclusion equivalent of $3,500,000. 

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

3 SECTION 1. RESTORATION OF ESTATE TAX; REPEAL OF 

4 CARRYOVER BASIS. 

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

6 the Economic Growth and Tax Relief Reconciliation Act 

7 of 2001, and the amendments made by such subtitles, are 
2 

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1 hereby repealed; and the Internal Revenue Code of 1986 

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

3 never been enacted. 

4 (b) SUNSET NOT TO APPLY.— 

5 (1) Subsection (a) of section 901 of the Eco6 nomic Growth and Tax Relief Reconciliation Act of 

7 2001 is amended by striking ‘‘this Act’’ and all that 

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

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

10 beginning after December 31, 2010.’’. 

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

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

13 (c) CONFORMING AMENDMENTS.—Subsections (d) 

14 and (e) of section 511 of the Economic Growth and Tax 

15 Relief Reconciliation Act of 2001, and the amendments 

16 made by such subsections, are hereby repealed; and the 

17 Internal Revenue Code of 1986 shall be applied as if such 

18 subsections, and amendments, had never been enacted. 

19 SEC. 2. INCREASE IN THE UNIFIED CREDIT AGAINST THE 

20 ESTATE TAX. 

21 (a) IN GENERAL.—Subsection (c) of section 2010 of 

22 the Internal Revenue Code of 1986 (relating to applicable 

23 credit amount) is amended by striking all that follows ‘‘the 

24 applicable exclusion amount’’ and inserting ‘‘. For pur-
3 

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1 poses of the preceding sentence, the applicable exclusion 

2 amount is $3,500,000.’’. 

3 (b) INFLATION ADJUSTMENT.—Section 2010 of such 

4 Code is amended by redesignating subsection (d) as sub5 section (e) and by inserting after subsection (c) the fol6 lowing new subsection: 

7 ‘‘(d) INFLATION ADJUSTMENT.—In the case of any 

8 decedent dying in a calendar year after 2006, the dollar 

9 amount in subsection (c) shall be increased by an amount 

10 equal to— 

11 ‘‘(1) such dollar amount, multiplied by 

12 ‘‘(2) the cost-of-living adjustment determined 

13 under section 1(f)(3) for such calendar year, deter14 mined by substituting ‘2005’ for ‘1992’ in subpara15 graph (B) thereof. 

16 If any increase determined under the preceding sentence 

17 is not a multiple of $10,000, such increase shall be round18 ed to the nearest multiple of $10,000.’’. 

19 (c) CONFORMING AMENDMENT.—Section 6018(a)(1) 

20 of such Code is amended by striking ‘‘section 2010(c)’’ 

21 and inserting ‘‘section 2010’’. 

22 (d) EFFECTIVE DATE.—The amendments made this 

23 section shall apply to estates of decedents dying, and gifts 

24 made, after December 31, 2005. 

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