HR 4154 RDS 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
DIVISION 
A—PERMANENT 
ES-
TATE TAX RELIEF FOR FAMI-
LIES, FARMERS, AND SMALL 
BUSINESSES ACT OF 2009 
SECTION 1. SHORT TITLE; TABEL OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Permanent Estate Tax Relief for Families, Farmers, and 
Small Businesses Act of 2009’’. 
(b) TABLE OF CONTENTS.—The table of contents for 
this Act is as follows: 
DIVISION A—PERMANENT ESTATE TAX RELIEF FOR FAMILIES, 
FARMERS, AND SMALL BUSINESSES ACT OF 2009 
Sec. 1. Short title; tabel of contents. 
Sec. 2. Retention of estate tax; repeal of carryover basis. 
Sec. 3. Modifications to estate and gift taxes. 
DIVISION B—STATUTORY PAY-AS-YOU-GO ACT OF 2009 
Sec. 101. Short Title. 
Sec. 102. Purpose. 
Sec. 103. Definitions. 
Sec. 104. PAYGO estimates and PAYGO scorecards. 
Sec. 105. Annual report and sequestration order. 
Sec. 106. Calculating a sequestration. 
Sec. 107. Current policy adjustment to the CBO estimates. 
Sec. 108. Application of BBEDCA. 
Sec. 109. Technical corrections. 
Sec. 110. Conforming amendments. 
Sec. 111. Exempt programs and activities. 
SEC. 2. RETENTION OF ESTATE TAX; REPEAL OF CARRY-
OVER BASIS. 
(a) IN GENERAL.—Subtitles A and E of title V of 
the Economic Growth and Tax Relief Reconciliation Act 
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of 2001, and the amendments made by such subtitles, are 
hereby repealed; and the Internal Revenue Code of 1986 
shall be applied as if such subtitles, and amendments, had 
never been enacted. 
(b) 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. 
(c) CONFORMING AMENDMENTS.— 
(1) Sections 511(d) and 521(b)(2) of the Eco-
nomic Growth and Tax Relief Reconciliation Act of 
2001, and the amendments made by such sections, 
are hereby repealed; and the Internal Revenue Code 
of 1986 shall be applied as if such sections, and 
amendments, had never been enacted. 
(2) Subsection (c) of section 2511 of the Inter-
nal Revenue Code of 1986 is hereby repealed. 
SEC. 3. MODIFICATIONS TO ESTATE AND GIFT TAXES. 
(a) $3,500,000 APPLICABLE EXCLUSION AMOUNT.— 
Subsection (c) of section 2010 of the Internal Revenue 
Code of 1986 (relating to applicable credit amount) is 
amended by striking all that follows ‘‘the applicable exclu-
sion amount’’ and inserting ‘‘. For purposes of the pre-
ceding sentence, the applicable exclusion amount is 
$3,500,000.’’. 
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(b) FREEZE MAXIMUM ESTATE
AND GIFT TAX 
RATES AT 45 PERCENT.—Subsection (c) of section 2001 
of such Code is amended— 
(1) by striking paragraph (2); 
(2) by striking so much of paragraph (1) as 
precedes the table contained therein; and 
(3) by striking the last 2 items in the table and 
inserting the following new item: 
‘‘Over $1,500,000 ................................
$555,800, plus 45 percent of the ex-
cess 
of 
such 
amount 
over 
$1,500,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2009. 
DIVISION B—STATUTORY PAY- 
AS-YOU-GO ACT OF 2009 
SEC. 101. SHORT TITLE. 
This division may be cited as the ‘‘Statutory Pay-As- 
You-Go Act of 2009’’. 
SEC. 102. PURPOSE. 
The purpose of this division is to reestablish a statu-
tory procedure to enforce a rule of budget neutrality on 
new revenue and direct spending legislation. 
SEC. 103. DEFINITIONS. 
As used in this division— 
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(1) The term ‘‘BBEDCA’’ means the Balanced 
Budget and Emergency Deficit Control Act of 1985. 
(2) The definitions set forth in section 3 of the 
Congressional Budget and Impoundment Control 
Act of 1974 and in section 250 of BBEDCA shall 
apply to this division, except to the extent that they 
are specifically modified as follows: 
(A) The term ‘‘outyear’’ means a fiscal 
year that occurs one or more years after the 
budget year. 
(B) In section 250(c)(8)(C), the reference 
to the food stamp program shall be deemed to 
be a reference to the Supplemental Nutrition 
Assistance Program. 
(3) The term ‘‘AMT’’ means the Alternative 
Minimum Tax for individuals under sections 55–59 
of the Internal Revenue Code of 1986, the term 
‘‘EGTRRA’’ means the Economic Growth and Tax 
Relief Reconciliation Act of 2001 (Public Law 107– 
16), and the term ‘‘JGTRRA’’ means the Jobs and 
Growth Tax Relief and Reconciliation Act of 2003 
(Public Law 108–27). 
(4)(A) The term ‘‘budgetary effects’’ means the 
amounts by which PAYGO legislation changes direct 
spending or revenues relative to the baseline and 
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shall be determined on the basis of estimates in-
cluded by reference in the PAYGO Act or prepared 
under section 104(d)(3), as applicable. Budgetary 
effects that increase direct spending or decrease rev-
enues are termed ‘‘costs’’ and budgetary effects that 
increase revenues or decrease direct spending are 
termed ‘‘savings’’. 
(B) For purposes of these definitions, off-budg-
et effects shall be counted as budgetary effects un-
less such changes flow directly from amendments to 
title II of the Social Security Act and related provi-
sions of the Internal Revenue Code of 1986 and debt 
service effects shall not be counted as budgetary ef-
fects. 
(C) Solely for purposes of recording entries on 
a PAYGO scorecard, provisions in appropriations 
Acts are also considered to be budgetary effects for 
purposes of this division if such provisions make out-
year modifications to substantive law, except that 
provisions for which the outlay effects net to zero 
over a period consisting of the current year, the 
budget year, and the 4 subsequent years shall not be 
considered budgetary effects. For purposes of this 
paragraph, the term, ‘‘modifications to substantive 
law’’ refers to changes to or restrictions on entitle-
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ment law or other mandatory spending contained in 
appropriations 
Acts, 
notwithstanding 
section 
250(c)(8) of BBEDCA. Provisions in appropriations 
Acts that are neither outyear modifications to sub-
stantive law nor changes in revenues have no budg-
etary effects for purposes of this division. 
(D) If a provision is designated as an emer-
gency requirement under this division and is also 
designated as an emergency requirement under the 
applicable rules of the House of Representatives, 
CBO shall not include the cost of such a provision 
in its estimate of the PAYGO legislation’s budgetary 
effects. 
(5) The term ‘‘debit’’ refers to the net total 
amount, when positive, by which costs recorded on 
the PAYGO scorecards for a fiscal year exceed sav-
ings recorded on those scorecards for that year. 
(6) The term ‘‘entitlement law’’ refers to a sec-
tion of law which provides entitlement authority. 
(7) The term ‘‘PAYGO legislation’’ or a 
‘‘PAYGO Act’’ refers to a bill or joint resolution 
that affects direct spending or revenue relative to 
the baseline. The budgetary effects of changes in 
revenues and outyear modifications to substantive 
law included in appropriation Acts as defined in 
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paragraph (4) shall be treated as if they were con-
tained in PAYGO legislation. 
(8) The term ‘‘timing shift’’ refers to a delay of 
the date on which direct spending would otherwise 
occur from the ninth outyear to the tenth outyear or 
an acceleration of the date on which revenues would 
otherwise occur from the tenth outyear to the ninth 
outyear. 
SEC. 104. PAYGO ESTIMATES AND PAYGO SCORECARDS. 
(a) PAYGO ESTIMATES.—(1) A PAYGO Act shall in-
clude by reference an estimate of its budgetary effects as 
determined under section 308(a)(3) of the Congressional 
Budget Act of 1974, if timely submitted for printing in 
the Congressional Record by the chairs of the Committees 
on the Budget of the House of Representatives and the 
Senate, as applicable, before the vote on the PAYGO legis-
lation. The Clerk of the House or the Secretary of the 
Senate, as applicable, shall also incorporate by reference 
such estimate printed in the relevant portion of the Con-
gressional Record under section 308(a)(3) of the Congres-
sional Budget Act of 1974 into the enrollment of a 
PAYGO Act. Budgetary effects that are not so included 
shall be determined under section 104(d)(3). 
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(2)(A) Section 308(a) of the Congressional Budget 
Act of 1974 is amended by adding at the end the following 
new paragraph: 
‘‘(3) CBO PAYGO ESTIMATES.—Before a vote in 
either House on a PAYGO Act that, if determined 
in the affirmative, would clear such Act for enroll-
ment, the chairs of the Committees on the Budget 
of the House and Senate, as applicable, shall request 
from the Director of the Congressional Budget Of-
fice an estimate of the budgetary effects of such Act 
under the Statutory Pay-As-You-Go Act of 2009. If 
such an estimate is timely provided, the chairs of the 
Committees on the Budget of the House of Rep-
resentatives and the Senate shall post such estimate 
on their respective committee websites and cause it 
to be printed in the Congressional Record under the 
heading ‘PAYGO ESTIMATE’. For purposes of this 
section, the Director of the Congressional Budget 
Office shall not count timing shifts in his estimates 
of the budgetary effects of PAYGO legislation (as 
defined in section 103 of the Statutory Pay-As-You- 
Go Act of 2009).’’. 
(B) The side heading of section 308(a) of the Con-
gressional Budget Act of 1974 is amended by striking 
‘‘REPORTS ON’’. 
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(b) Section 308 of the Congressional Budget Act of 
1974 is amended by adding at the end the following new 
subsection: 
‘‘(d) SCOREKEEPING GUIDELINES.—The Director of 
the Congressional Budget Office shall provide estimates 
under this section in accordance with the scorekeeping 
guidelines determined under section 252(d)(5) of the Bal-
anced Budget and Emergency Deficit Control Act of 1985. 
Upon agreement, the chairs of the Committees on the 
Budget of the House of Representatives and the Senate 
shall submit updates to such guidelines for printing in the 
Congressional Record.’’. 
(c) CURRENT POLICY ADJUSTMENTS FOR CERTAIN 
LEGISLATION.—For purposes of calculating budgetary ef-
fects under this division, CBO shall adjust its estimates 
as described below for any provision of legislation des-
ignated as meeting the criteria in subsection (b), (c), or 
(d) of section 107 and which the chairman of the Com-
mittee on the Budget of the House of Representatives or 
the Senate, as applicable, designates as meeting those cri-
teria. A single piece of legislation may contain provisions 
designated as meeting criteria in more than one of the 
subsections listed above. For appropriately designated pro-
visions, CBO shall exclude from its estimates for purposes 
of this division any costs of a provision to the extent that 
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those costs, when combined with all other excluded costs 
of any other previously designated provisions of enacted 
legislation under the same subsection of section 107, do 
not exceed the maximum applicable current policy adjust-
ment defined under the applicable subsection of section 
107 for the applicable 10-year period, using the most re-
cent baseline estimates supplied by the Congressional 
Budget Office consistent with section 257 of the Balanced 
Budget and Emergency Deficit Control Act of 1985 used 
in considering a concurrent resolution on the budget; or, 
after the beginning of a new calendar year and before con-
sideration of a concurrent resolution on the budget, using 
the most recent baseline estimates supplied by the Con-
gressional Budget Office consistent with section 257 of the 
Balanced Budget and Emergency Deficit Control Act of 
1985. CBO estimates of legislation containing a current 
policy designation under this subsection shall include a 
separate presentation of costs excluded from the calcula-
tion of budgetary effects for the legislation, as well as an 
updated total of all excluded costs of provisions within the 
same subsection of section 107. 
(d) OMB PAYGO SCORECARDS.— 
(1) IN
GENERAL.—OMB shall maintain and 
make publicly available a continuously updated docu-
ment containing two PAYGO scorecards displaying 
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the budgetary effects of PAYGO legislation as deter-
mined under section 308 of the Congressional Budg-
et Act of 1974, applying the look-back requirement 
in subsection (e) and the averaging requirement in 
subsection (f), and a separate addendum displaying 
the estimates of the costs of provisions designated in 
statute as emergency requirements. 
(2) ESTIMATES
IN
LEGISLATION.—Except as 
provided in paragraph (3), in making the calcula-
tions for the PAYGO scorecards, OMB shall use the 
budgetary effects included by reference in the appli-
cable legislation. 
(3) OMB ESTIMATES.—If legislation does not 
contain the estimate of budgetary effects under 
paragraph (2), then OMB shall score the budgetary 
effects of that legislation upon its enactment, based 
on the approaches to scorekeeping set forth in this 
division. 
(4) 5-YEAR
SCORECARD.—The first scorecard 
shall display the budgetary effects of PAYGO legis-
lation in each year over the 5-year period beginning 
in the budget year. 
(5) 10-YEAR SCORECARD.—The second score-
card shall display the budgetary effects of PAYGO 
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legislation in each year over the 10-year period be-
ginning in the budget year. 
(e) LOOK-BACK TO CAPTURE CURRENT-YEAR EF-
FECTS.—For purposes of this section, OMB shall treat the 
budgetary effects of PAYGO legislation enacted during a 
session of Congress that occur during the current year as 
though they occurred in the budget year. 
(f) AVERAGING USED
TO MEASURE COMPLIANCE 
OVER 5-YEAR AND 10-YEAR PERIODS.—OMB shall cumu-
late the budgetary effects of a PAYGO Act over the budg-
et year (which includes any look-back effects under sub-
section (e)) and— 
(1) for purposes of the 5-year scorecard re-
ferred to in subsection (d)(4), the four subsequent 
outyears, divide that cumulative total by five, and 
enter the quotient in the budget-year column and in 
each subsequent column of the 5-year PAYGO score-
card; and 
(2) for purposes of the 10-year scorecard re-
ferred to in subsection (d)(5), the nine subsequent 
outyears, divide that cumulative total by ten, and 
enter the quotient in the budget-year column and in 
each subsequent column of the 10-year PAYGO 
scorecard. 
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