I 

111TH CONGRESS 

1ST SESSION H. R. 96 

To amend the Internal Revenue Code of 1986 to increase the maximum 

reduction in estate tax value for farmland and other special use property, 

to restore and increase the estate tax deduction for family-owned business 

interests, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 6, 2009 

Mr. CONAWAY 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 increase 

the maximum reduction in estate tax value for farmland 

and other special use property, to restore and increase 

the estate tax deduction for family-owned business interests, 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 ‘‘Save Family-Owned 

5 Farms and Small Businesses Act of 2009’’. 


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•HR 96 IH

1 SEC. 2. INCREASE IN MAXIMUM REDUCTION IN ESTATE TAX 

2 VALUE FOR FARMLAND AND OTHER SPECIAL 

3 USE PROPERTY UNDER 2032A. 

4 (a) IN GENERAL.—Subsection (a) of section 2032A 

5 of the Internal Revenue Code of 1986 (relating to valu6 ation of certain farm, etc., real property) is amended— 

7 (1) by striking ‘‘$750,000’’ each place it ap8 pears and inserting ‘‘$1,850,000’’, 

9 (2) by striking ‘‘after 1998’’ in paragraph (3) 

10 and inserting ‘‘after 2010’’, and 

11 (3) by striking ‘‘1997’’ in paragraph (3)(B) and 

12 inserting ‘‘2009’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to estates of decedents dying after 

15 December 31, 2009. 

16 SEC. 3. RESTORATION OF, AND INCREASE IN, DEDUCTION 

17 FOR FAMILY-OWNED BUSINESS INTERESTS. 

18 (a) RESTORATION.—Subsection (j) of section 2057 of 

19 the Internal Revenue Code of 1986 (relating to termi20 nation) is amended to read as follows: 

21 ‘‘(j) APPLICATION OF SECTION.—This section— 

22 ‘‘(1) shall not apply to estates of decedents 

23 dying after December 31, 2003, and before January 

24 1, 2010, but 

25 ‘‘(2) shall apply to estates of decedents dying 

26 after December 31, 2009.’’. 


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•HR 96 IH

1 (b) INCREASE.— 

2 (1) IN GENERAL.—Subsection (a) of section 

3 2057 of such Code is amended— 

4 (A) by striking ‘‘$675,000’’ in paragraph 

5 (2) and inserting ‘‘$2,000,000’’, and 

6 (B) by striking paragraph (3). 

7 (2) COST-OF-LIVING ADJUSTMENT.—Subsection 

8 (a) of section 2057 of such Code is amended by add9 ing at the end the following new paragraph: 

10 ‘‘(3) COST-OF-LIVING ADJUSTMENT.—In the 

11 case of any decedent dying in a calendar year after 

12 2010, the $2,000,000 amount in paragraph (2) shall 

13 be increased by an amount equal to— 

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

15 ‘‘(B) the cost-of-living adjustment deter16 mined under section 1(f)(3) for such calendar 

17 year by substituting ‘calendar year 2009’ for 

18 ‘calendar year 1992’ in subparagraph (B) 

19 thereof. 

20 If any amount as adjusted under the preceding sen21 tence is not a multiple of $10,000, such amount 

22 shall be rounded to the nearest multiple of 

23 $10,000.’’. 


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•HR 96 IH

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

2 this section shall apply to estates of decedents dying after 

3 December 31, 2009. 

Æ 


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