I 
112TH CONGRESS 
2D SESSION 
H. R. 16 
To provide estate, gift, and generation-skipping transfer tax relief. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2012 
Mr. LEVIN (for himself, Ms. PELOSI, Mr. HOYER, Mr. CLYBURN, Mr. RAN-
GEL, Mr. LEWIS of Georgia, Mr. NEAL, Mr. LARSON of Connecticut, Mr. 
CROWLEY, Mr. BLUMENAUER, Mr. PASCRELL, Mr. VAN HOLLEN, and 
Mrs. CAPPS) introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on the 
Budget, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To provide estate, gift, and generation-skipping transfer tax 
relief. 
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 ‘‘Sensible Estate Tax 
Relief Act of 2012’’. 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS
SEC. 2. ESTATE, GIFT, AND GENERATION-SKIPPING TRANS-
FER TAX RELIEF. 
(a) TEMPORARY EXTENSION.—Section 901(a)(2) of 
the Economic Growth and Tax Relief Reconciliation Act 
of 2001 is amended by striking ‘‘December 31, 2012’’ and 
inserting ‘‘December 31, 2013’’. 
(b) MODIFICATIONS TO ESTATE TAX.— 
(1) EXCLUSION
AMOUNT.—Paragraph (3) of 
section 2010(c) of the Internal Revenue Code of 
1986 is amended to read as follows: 
‘‘(3) BASIC
EXCLUSION
AMOUNT.—For pur-
poses of this section, the basic exclusion amount is 
$3,500,000.’’. 
(2) MAXIMUM ESTATE TAX RATE.—The table in 
subsection (c) of section 2001 of such Code is 
amended by striking ‘‘Over $500,000’’ and all that 
follows and inserting the following: 
Over 
$500,000 
but 
not 
over 
$750,000.
$155,800, plus 37 percent of the ex-
cess 
of 
such 
amount 
over 
$500,000. 
Over 
$750,000 
but 
not 
over 
$1,000,000.
$248,300, plus 39 percent of the ex-
cess 
of 
such 
amount 
over 
$750,000. 
Over $1,000,000 but not over 
$1,250,000.
$345,800, plus 41 percent of the ex-
cess 
of 
such 
amount 
over 
$1,000,000. 
Over $1,250,000 but not over 
$1,500,000.
$448,300, plus 43 percent of the ex-
cess 
of 
such 
amount 
over 
$1,250,000. 
Over $1,500,000 ............................
$555,800, plus 45 percent of the ex-
cess 
of 
such 
amount 
over 
$1,500,000.’’. 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6211
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS
(c) MODIFICATIONS OF ESTATE AND GIFT TAXES TO 
REFLECT DIFFERENCES IN CREDIT RESULTING FROM 
DIFFERENT TAX RATES AND EXCLUSION AMOUNTS.— 
(1) CHANGING
TAX
RATES.—Notwithstanding 
section 304 of the Tax Relief, Unemployment Insur-
ance Reauthorization, and Job Creation Act of 
2010, section 901 of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 shall not apply to 
the amendments made by section 302(d) of the Tax 
Relief, Unemployment Insurance Reauthorization, 
and Job Creation Act of 2010. 
(2) DECREASING EXCLUSIONS.— 
(A) ESTATE
TAX
ADJUSTMENT.—Section 
2001 of the Internal Revenue Code of 1986 is 
amended by adding at the end the following 
new subsection: 
‘‘(h) ADJUSTMENT TO REFLECT CHANGES IN EX-
CLUSION AMOUNT.— 
‘‘(1) IN GENERAL.—If, with respect to any gift 
to which subsection (b)(2) applies, the applicable ex-
clusion amount in effect at the time of the dece-
dent’s death is less than such amount in effect at 
the time such gift is made by the decedent, the 
amount of tax computed under subsection (b) shall 
be reduced by the amount of tax which would have 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS
been payable under chapter 12 at the time of the 
gift if the applicable exclusion amount in effect at 
such time had been the applicable exclusion amount 
in effect at the time of the decedent’s death and the 
modifications described in subsection (g) had been 
applicable at the time of such gifts. 
‘‘(2) LIMITATION.—The aggregate amount of 
gifts made in any calendar year to which the reduc-
tion under paragraph (1) applies shall not exceed 
the excess of— 
‘‘(A) the applicable exclusion amount in ef-
fect for such calendar year, over 
‘‘(B) the applicable exclusion amount in ef-
fect at the time of the decedent’s death. 
‘‘(3) APPLICABLE
EXCLUSION
AMOUNT.—The 
term ‘applicable exclusion amount’ means, with re-
spect to any period, the amount determined under 
section 2010(c) for such period, except that in the 
case of any period for which such amount includes 
the deceased spousal unused exclusion amount (as 
defined in section 2010(c)(4)), such term shall mean 
the basic exclusion amount (as defined under section 
2010(c)(3), as in effect for such period).’’. 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6201
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS
(B) GIFT
TAX
ADJUSTMENT.—Section 
2502 of such Code is amended by adding at the 
end the following new subsection: 
‘‘(d) ADJUSTMENT TO REFLECT CHANGES IN EX-
CLUSION AMOUNT.— 
‘‘(1) IN GENERAL.—If the taxpayer made a tax-
able gift in an applicable preceding calendar period, 
the amount of tax computed under subsection (a) 
shall be reduced by the amount of tax which would 
have been payable under chapter 12 for such appli-
cable preceding calendar period if the applicable ex-
clusion amount in effect for such preceding calendar 
period had been the applicable exclusion amount in 
effect for the calendar year for which the tax is 
being computed and the modifications described in 
subsection (g) had been applicable for such pre-
ceding calendar period. 
‘‘(2) LIMITATION.—The aggregate amount of 
gifts made in any applicable preceding calendar pe-
riod to which the reduction under paragraph (1) ap-
plies shall not exceed the excess of— 
‘‘(A) the applicable exclusion amount for 
such preceding calendar period, over 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00005
Fmt 6652
Sfmt 6201
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS
(2) EXTENSION.—The amendment made by 
subsection (a) shall take effect as if included in the 
enactment of the Economic Growth and Tax Relief 
Reconciliation Act of 2001. 
(e) APPLICATION
OF EGTRRA SUNSET.—Section 
901 of the Economic Growth and Tax Relief Reconcili-
ation Act shall apply to the amendments made by sub-
section (b). 
SEC. 3. TREATMENT FOR PAYGO PURPOSES. 
The budgetary effects of this Act shall not be entered 
on either PAYGO scorecard maintained pursuant to sec-
tion 4(d) of the Statutory Pay-As-You-Go Act of 2010. 
Æ 
VerDate Mar 15 2010 
23:33 Aug 01, 2012
Jkt 019200
PO 00000
Frm 00007
Fmt 6652
Sfmt 6301
E:\BILLS\H16.IH
H16
TKELLEY on DSK3SPTVN1PROD with BILLS