I 
111TH CONGRESS 
1ST SESSION H. R. 4174 
To amend the Internal Revenue Code of 1986 to provide relief with respect 
to estate and gift taxes, small businesses, and government contractors. 
IN THE HOUSE OF REPRESENTATIVES 
DECEMBER 2, 2009 
Mr. NYE 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 provide 
relief with respect to estate and gift taxes, small busi-
nesses, and government contractors. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Tax Relief for Business Growth and Sustainability Act 
of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
Sec. 1. Short title; table of contents. 
TITLE I—ESTATE AND GIFT TAX REFORM 
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Sec. 101. Repeal of carryover basis; increased exclusion amount; maximum 35 
percent rate. 
Sec. 102. Increase in deduction for family-owned businesses. 
Sec. 103. Exclusion from gross estate of value of principal residence. 
TITLE II—TREATMENT OF SMALL BUSINESS STOCK 
Sec. 201. Full exclusion from gross income of gain from qualified small busi-
ness stock. 
Sec. 202. Repeal of alternative minimum tax treatment of qualified small busi-
ness stock gain as item of tax preference. 
TITLE III—RELIEF FOR GOVERNMENT CONTRACTORS 
Sec. 301. Repeal of withholding tax on government contractors. 
TITLE I—ESTATE AND GIFT TAX 
REFORM 
SEC. 101. REPEAL OF CARRYOVER BASIS; INCREASED EX-
CLUSION AMOUNT; MAXIMUM 35 PERCENT 
RATE. 
(a) EGTRRA SUNSET NOT TO APPLY.—Section 901 
of the Economic Growth and Tax Relief Reconciliation Act 
of 2001 shall not apply to title V of such Act (other than 
subtitles A and E, and sections 511(d) and 521(b)(2), 
thereof). 
(b) $5,000,000 APPLICABLE EXCLUSION AMOUNT.— 
Subsection (c) of section 2010 of the Internal Revenue 
Code of 1986 is amended by striking all that follows ‘‘the 
applicable exclusion amount’’ and inserting ‘‘. For pur-
poses of the preceding sentence, the applicable exclusion 
amount is $5,000,000.’’. 
(c) MAXIMUM ESTATE AND GIFT TAX RATE 35 PER-
CENT.—Paragraph (1) of section 2001(c) of such Code is 
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amended by striking the last 7 items in the table and in-
serting the following new item: 
‘‘Over $500,000 ...................................
$155,800, plus 35 percent of the ex-
cess 
of 
such 
amount 
over 
$500,000.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2010. 
SEC. 102. INCREASE IN DEDUCTION FOR FAMILY-OWNED 
BUSINESSES. 
(a) IN GENERAL.— 
(1) INCREASE.—Paragraph (2) of section 
2057(a) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$675,000’’ and inserting 
‘‘$5,000,000’’. 
(2) ALLOWED
IN
ADDITION
TO
APPLICABLE 
CREDIT AMOUNT.—Subsection (a) of section 2057 of 
such Code is amended by striking paragraph (3). 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2010. 
SEC. 103. EXCLUSION FROM GROSS ESTATE OF VALUE OF 
PRINCIPAL RESIDENCE. 
(a) IN GENERAL.—Subchapter A of chapter 11 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
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‘‘SEC. 2059. PRINCIPAL RESIDENCE. 
‘‘(a) IN GENERAL.—For purposes of the tax imposed 
by section 2001, in the case of a decedent who was (at 
the date of the decedent’s death) a citizen or resident of 
the United States, the value of the taxable estate shall 
be determined by deducting from the value of the gross 
estate the adjusted value of any residence if— 
‘‘(1) such residence is included in determining 
the value of the gross estate, 
‘‘(2) such residence is located in the United 
States, and 
‘‘(3) during the 8-year period ending on the 
date of the decedent’s death, there have been periods 
aggregating 5 years during which such residence was 
owned by the decedent or a member of the dece-
dent’s family and used by the decedent or such a 
member as their principal residence (within the 
meaning of section 121). 
‘‘(b) LIMITATION.—The deduction allowed by this 
section shall not exceed $2,000,000. 
‘‘(c) ADJUSTED VALUE.—For purposes of this sec-
tion, the adjusted value of property is the value of such 
property for purposes of this chapter, reduced by amounts 
allowable as a deduction in respect to such property under 
paragraph (4) of section 2053(a).’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subchapter A of chapter 11 of such Code is amended 
by adding at the end the following new item: 
‘‘Sec. 2059. Principal residence.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2010. 
TITLE II—TREATMENT OF 
SMALL BUSINESS STOCK 
SEC. 201. FULL EXCLUSION FROM GROSS INCOME OF GAIN 
FROM QUALIFIED SMALL BUSINESS STOCK. 
(a) IN GENERAL.—Paragraph (1) of section 1202(a) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘50 percent of’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 202. REPEAL OF ALTERNATIVE MINIMUM TAX TREAT-
MENT 
OF 
QUALIFIED 
SMALL 
BUSINESS 
STOCK GAIN AS ITEM OF TAX PREFERENCE. 
(a) IN GENERAL.—Subsection (a) of section 57 of the 
Internal Revenue Code of 1986 is amended by striking 
paragraph (7). 
(b) CONFORMING AMENDMENT.—Subclause (II) of 
section 53(d)(1)(B)(ii) of such Code is amended by strik-
ing ‘‘, (5), and (7)’’ and inserting ‘‘and (5)’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
TITLE III—RELIEF FOR 
GOVERNMENT CONTRACTORS 
SEC. 301. REPEAL OF WITHHOLDING TAX ON GOVERNMENT 
CONTRACTORS. 
Section 3402 of the Internal Revenue Code of 1986 
is amended by striking subsection (t). 
Æ 
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