2001, and the amendments made by such provisions, are 
hereby repealed: 
(1) Subtitles A and E of title V. 
(2) Subsection (d), and so much of subsection 
(f)(3) as relates to subsection (d), of section 511. 
(3) Paragraph (2) of subsection (b), and para-
graph (2) of subsection (e), of section 521. 
The Internal Revenue Code of 1986 shall be applied as 
if such provisions and amendments had never been en-
acted. 
(b) SUNSET NOT TO APPLY.— 
(1) Subsection (a) of section 901 of the Eco-
nomic Growth and Tax Relief Reconciliation Act of 
2001 is amended by striking ‘‘this Act’’ and all that 
follows and inserting ‘‘this Act (other than title V) 
shall not apply to taxable, plan, or limitation years 
beginning after December 31, 2010.’’. 
(2) Subsection (b) of such section 901 is 
amended by striking ‘‘, estates, gifts, and transfers’’. 
SEC. 3. UNIFIED CREDIT AGAINST THE ESTATE TAX. 
(a) IN GENERAL.—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 exclusion amount’’ and inserting ‘‘. For pur-
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poses of the preceding sentence, the applicable exclusion 
amount is $2,000,000.’’. 
(b) INFLATION ADJUSTMENT.—Subsection (c) of sec-
tion 2010 of such Code, as amended by subsection (a), 
is amended— 
(1) by striking ‘‘For purposes of this section,’’ 
and inserting the following: 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion,’’, and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any decedent dying in a calendar year after 2008, 
the $2,000,000 amount in paragraph (1) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for such calendar 
year, determined by substituting ‘2007’ for 
‘1992’ in subparagraph (B) thereof. 
If any increase determined under the preceding sen-
tence is not a multiple of $10,000, such increase 
shall be rounded to the nearest multiple of 
$10,000.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2008. 
SEC. 4. RATES OF TAX. 
(a) IN GENERAL.—The table in paragraph (1) of sec-
tion 2001(c) of the Internal Revenue Code of 1986 (relat-
ing to rate schedule) is amended by striking the last 3 
rows and inserting the following: 
Over $1,500,000 but not over 
$5,000,000.
$555,800, plus 45 percent of the ex-
cess 
of 
such 
amount 
over 
$1,500,000. 
Over $5,000,000 but not over 
$10,000,000.
$2,130,800, plus 50 percent of the 
excess 
of 
such 
amount 
over 
$5,000,000. 
Over $10,000,000 ..........................
$4,630,800, plus 55 percent of the 
excess 
of 
such 
amount 
over 
$10,000,000. 
(b) ADJUSTMENT FOR INFLATION.—Paragraph (2) 
of section 2001(c) of such Code is amended to read as 
follows: 
‘‘(2) INFLATION ADJUSTMENT.—In the case of 
any decedent dying in a calendar year after 2008— 
‘‘(A) each minimum and maximum dollar 
amount for each rate bracket in the table in 
paragraph (1) shall be increased by an amount 
equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for such 
calendar year, determined by substituting 
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‘2007’ for ‘1992’ in subparagraph (B) 
thereof, and 
‘‘(B) each of the amounts setting forth the 
tax under such table shall be adjusted to the 
extent necessary to reflect the adjustments in 
the rate brackets made by subparagraph (A). 
If any increase determined under subparagraph 
(A) is not a multiple of $10,000, such increase 
shall be rounded to the nearest multiple of 
$10,000.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to estates of decedents dying, 
and gifts made, after December 31, 2008. 
SEC. 5. RESTORATION OF CREDIT FOR STATE DEATH TAX. 
(a) IN GENERAL.—Section 2011 of the Internal Rev-
enue Code of 1986 (relating to credit for State death 
taxes) is amended by striking subsection (f). 
(b) REPEAL
OF DEDUCTION
FOR STATE DEATH 
TAXES.— 
(1) IN GENERAL.—Section 2058 of such Code 
(relating to State death taxes) is amended by adding 
at the end the following: 
‘‘(c) TERMINATION.—This section shall not apply to 
the estates of decedents dying after December 31, 2008.’’. 
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(2) 
CONFORMING
AMENDMENT.—Section 
2106(a)(4) of such Code is amended by adding at 
the end the following new sentence: ‘‘This paragraph 
shall not apply to the estates of decedents dying 
after December 31, 2008.’’. 
(c) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to estates of decedents dying, 
and gifts made, after December 31, 2008. 
SEC. 6. RESTORATION OF UNIFIED CREDIT AGAINST GIFT 
TAX. 
(a) IN GENERAL.—Paragraph (1) of section 2505(a) 
of the Internal Revenue Code of 1986 (relating to general 
rule for unified credit against gift tax) is amended by 
striking ‘‘(determined as if the applicable exclusion 
amount were $1,000,000)’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, gen-
eration-skipping transfers, and gifts made, after Decem-
ber 31, 2008. 
SEC. 7. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED 
CREDIT OF DECEASED SPOUSE. 
(a) IN GENERAL.—Section 2010 of the Internal Rev-
enue Code of 1986, as amended by section 2, is amend-
ed— 
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(1) by striking the last sentence of paragraph 
(1), 
(2) by striking paragraph (2), and 
(3) by inserting after paragraph (1) the fol-
lowing new paragraph: 
‘‘(2) APPLICABLE
EXCLUSION
AMOUNT.—For 
purposes of paragraph (1)— 
‘‘(A) IN GENERAL.—The applicable exclu-
sion amount is the sum of— 
‘‘(i) the basic exclusion amount, and 
‘‘(ii) in the case of a surviving spouse, 
the aggregate deceased spousal unused ex-
clusion amount. 
‘‘(B) BASIC EXCLUSION AMOUNT.— 
‘‘(i) IN
GENERAL.—For purposes of 
subparagraph (A), the basic exclusion 
amount is $2,000,000. 
‘‘(ii) INFLATION
ADJUSTMENT.—In 
the case of any decedent dying in a cal-
endar year after 2008, the $2,000,000 
amount in clause (i) shall be increased by 
an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
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‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2007’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
If any amount as adjusted under the pre-
ceding sentence is not a multiple of 
$100,000, such amount shall be rounded 
to the nearest multiple of $100,000. 
‘‘(C) AGGREGATE DECEASED SPOUSAL UN-
USED EXCLUSION AMOUNT.—For purposes of 
this subsection— 
‘‘(i) AGGREGATE DECEASED SPOUSAL 
UNUSED EXCLUSION AMOUNT.—The term 
‘aggregate deceased spousal unused exclu-
sion amount’ means the lesser of— 
‘‘(I) the basic exclusion amount, 
or 
‘‘(II) the sum of the deceased 
spousal unused exclusion amounts of 
the surviving spouse. 
‘‘(ii) DECEASED
SPOUSAL
UNUSED 
EXCLUSION
AMOUNT.—For purposes of 
subsection (A), the term ‘deceased spousal 
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unused exclusion amount’ means, with re-
spect to the surviving spouse of any de-
ceased spouse dying after December 31, 
2008, the excess (if any) of— 
‘‘(I) 
the 
applicable 
exclusion 
amount of the deceased spouse, over 
‘‘(II) the amount with respect to 
which the tentative tax is determined 
under section 2001(b)(1) on the es-
tate of such deceased spouse. 
‘‘(iii) SPECIAL RULES.— 
‘‘(I) ELECTION
REQUIRED.—A 
deceased spousal unused exclusion 
amount may not be taken into ac-
count by a surviving spouse under this 
paragraph unless the executor of the 
estate of the deceased spouse files an 
estate tax return on which such 
amount is computed and makes an 
election on such return that such 
amount may be so taken into account. 
Such election, once made, shall be ir-
revocable. No election may be made 
under this clause if such return is 
filed after the time prescribed by law 
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(including extensions) for filing such 
return. 
‘‘(II) EXAMINATION
OF
PRIOR 
RETURNS AFTER EXPIRATION OF PE-
RIOD OF LIMITATIONS WITH RESPECT 
TO DECEASED SPOUSAL UNUSED EX-
CLUSION
AMOUNT.—Notwithstanding 
any period of limitation in section 
6501, after the time has expired 
under section 6501 within which a tax 
may be assessed under chapter 11 or 
12 with respect to a deceased spousal 
unused exclusion amount, the Sec-
retary may examine a return of the 
deceased spouse to make determina-
tions with respect to such amount for 
purposes of carrying out this sub-
section. 
‘‘(D) REGULATIONS.—The Secretary shall 
prescribe such regulations as may be necessary 
or appropriate to carry out this subsection.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (1) of section 2505(a) of such 
Code, as amended by section 5, is amended to read 
as follows: 
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‘‘(1) the applicable credit amount under section 
2010(c) which would apply if the donor died as of 
the end of the calendar year, reduced by’’. 
(2) Section 2631(c) of such Code is amended by 
striking ‘‘the applicable exclusion amount’’ and in-
serting ‘‘the basic exclusion amount’’. 
(3) Section 6018(a)(1) of such Code is amended 
by striking ‘‘applicable exclusion amount’’ and in-
serting ‘‘basic exclusion amount’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, gen-
eration-skipping transfers, and gifts made, after Decem-
ber 31, 2008. 
Æ 
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