I 
111TH CONGRESS 
1ST SESSION H. R. 4154 
To amend the Internal Revenue Code of 1986 to repeal the new carryover 
basis rules in order to prevent tax increases and the imposition of 
compliance burdens on many more estates than would benefit from re-
peal, to retain the estate tax with a $3,500,000 exemption, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 19, 2009 
Mr. POMEROY 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 repeal 
the new carryover basis rules in order to prevent tax 
increases and the imposition of compliance burdens on 
many more estates than would benefit from repeal, to 
retain the estate tax with a $3,500,000 exemption, 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 ‘‘Permanent Estate Tax 
Relief for Families, Farmers, and Small Businesses Act 
of 2009’’. 
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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 
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hereby repealed; and the Internal Revenue Code of 1986 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are hereby repealed; and the Internal Revenue Code 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nal Revenue Code of 1986 is hereby repealed.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-
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ceding sentence, the applicable exclusion amount is 
$3,500,000.’’. 
(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. 
Æ 
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