I
104TH CONGRESS
1ST SESSION
H. R. 2190
To amend the Internal Revenue Code of 1986 to allow a family-owned
business exclusion from the gross estate subject to estate tax, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 3, 1995
Mr. MCCRERY (for himself, Ms. DUNN of Washington, Mr. BREWSTER, Mr.
HERGER, Mr. PAYNE of Virginia, Mr. BUNNING of Kentucky, Mr. HAN-
COCK, Mr. CHRISTENSEN, Mr. LAUGHLIN, Mr. TAUZIN, Mrs. MEYERS of
Kansas, Mr. CRAMER, Mr. ROBERTS, Mr. CONDIT, Mr. TAYLOR of North
Carolina, Mr. HALL of Texas, Mr. BLUTE, Mr. BAKER of Louisiana, Mr.
BAESLER, Mr. WELLER, Mr. PARKER, Mr. HASTINGS of Washington, Mr.
HAYES, Mr. KNOLLENBERG, Mr. BROWDER, Mr. LEWIS of California,
Ms. DANNER, Mr. HOSTETTLER, Mrs. LINCOLN, Mr. SOUDER, Mr.
HUTCHINSON, Mr. JOHNSON of South Dakota, Mr. PETE GEREN of
Texas, Mr. EWING, Mr. CANADY of Florida, Mr. BARRETT of Nebraska,
Mr. LONGLEY, Mr. PETERSON of Minnesota, Mrs. SMITH of Washington,
Mr. HOLDEN, Mr. LUCAS, Mr. TANNER, Mr. NETHERCUTT, Mr.
LAHOOD, Mr. COOLEY, Mr. METCALF, Mr. ALLARD, Mr. ROSE, Mr.
DICKEY, Mr. DEAL of Georgia, Mr. CHAMBLISS, Mr. WATTS of Okla-
homa, Mr. MONTGOMERY, Mr. STENHOLM, Mr. HUNTER, Mr. LARGENT,
Mr. ENSIGN, Mr. COBURN, Mr. COMBEST, Mr. DICKS, Mr. BILBRAY, Mr.
POMBO, Mr. CRAPO, Mr. DOOLEY, Mr. OXLEY, Mr. BALLENGER, Mr.
BARCIA of Michigan, Mr. LIVINGSTON, Mr. PORTMAN, Mr. BARTON of
Texas, Mr. NUSSLE, Mr. CALLAHAN, Mr. EVERETT, Mr. KINGSTON, Mr.
CALVERT, Mr. COLLINS of Georgia, Mr. KASICH, Mr. CHAPMAN, Mr.
DOOLITTLE, Mr. FAZIO of California, Mr. SCHAEFER, Mr. TATE, and Mr.
GOODLATTE) 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 allow a
family-owned business exclusion from the gross estate
subject to estate tax, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Family Business Pro-
tection Act of 1995’’.
SEC. 2. FAMILY-OWNED BUSINESS EXCLUSION.
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 (relating to
gross estate) is amended by inserting after section 2033
the following new section:
‘‘SEC. 2033A. FAMILY-OWNED BUSINESS EXCLUSION.
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, the value of the gross
estate shall not include the lesser of—
‘‘(1) the adjusted value of the qualified family-
owned business interests of the decedent otherwise
includible in the estate, or
‘‘(2) the sum of—
‘‘(A) $1,500,000, plus
‘‘(B) 50 percent of the excess (if any) of
the adjusted value of such interests over
$1,500,000.
‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This
section shall apply to an estate if—
‘‘(1) the decedent was (at the date of the dece-
dent’s death) a citizen or resident of the United
States,
‘‘(2) the sum of—
‘‘(A) the adjusted value of the qualified
family-owned business interests which—
‘‘(i) are included in determining the
value of the gross estate (without regard to
this section), and
‘‘(ii) are acquired by a qualified heir
from, or passed to a qualified heir from,
the decedent (within the meaning of sec-
tion 2032A(e)(9)), plus
‘‘(B) the amount of the adjusted taxable
gifts of such interests from the decedent to
members of the decedent’s family taken into ac-
count under subsection 2001(b)(1)(B),
exceeds 50 percent of the adjusted gross estate, and
‘‘(3) during the 8-year period ending on the
date of the decedent’s death there have been periods
aggregating 5 years or more during which—
‘‘(A) such interests were owned by the de-
cedent or a member of the decedent’s family,
and