I
104TH CONGRESS
1ST SESSION
H. R. 1401
To establish for certain employees of international organizations an estate
tax credit equivalent to the limited marital deduction.
IN THE HOUSE OF REPRESENTATIVES
APRIL 5, 1995
Mr. HOUGHTON (for himself and Mr. GIBBONS) introduced the following bill;
which was referred to the Committee on Ways and Means
A BILL
To establish for certain employees of international organiza-
tions an estate tax credit equivalent to the limited mari-
tal deduction.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CREDIT EQUIVALENT TO LIMITED MARITAL DE-
DUCTION IN CASE OF CERTAIN EMPLOYEES
OF INTERNATIONAL ORGANIZATIONS.
(a) IN GENERAL.—Subchapter C of chapter 11 of the
Internal Revenue Code of 1986 is amended by adding at
the end the following new section:
‘‘SEC. 2210. CREDIT EQUIVALENT TO LIMITED MARITAL DE-
DUCTION IN CASE OF CERTAIN EMPLOYEES
OF INTERNATIONAL ORGANIZATIONS.
‘‘(a) GENERAL RULE.—In the case of a decedent to
whom this section applies, the tax determined under sec-
tion 2001(b) or 2101(b) (whichever is applicable) shall be
reduced by the applicable marital transfer credit deter-
mined under subsection (c).
‘‘(b) DECEDENTS TO WHOM SECTION APPLIES.—
This section shall apply to a decedent if—
‘‘(1) as of the date of the decedent’s death—
‘‘(A) both the decedent and the surviving
spouse of the decedent were not citizens of the
United States and not lawful permanent resi-
dents of the United States, and
‘‘(B) either the decedent or the surviving
spouse of the decedent was a qualified inter-
national organization employee, and
‘‘(2) the executor of the decedent’s estate
waives the benefits of section 2056(d)(2).
‘‘(c) APPLICABLE MARITAL TRANSFER CREDIT.—
‘‘(1) 
ESTATES
TAXABLE
UNDER
SECTION
2001.—
‘‘(A) IN GENERAL.—If the estate of the
decedent is taxable under section 2001, the ap-
plicable marital transfer credit is the excess
of—
‘‘(i) a tentative tax computed under
section 2001(c) on the sum of the marital
transfer amount plus $600,000, over
‘‘(ii) a tentative tax computed under
section 2001(c) on $600,000.
If the amount of the adjusted taxable gifts of
the decedent exceeds $600,000, the amount of
such gifts shall be substituted for ‘$600,000’ in
clauses (i) and (ii).
‘‘(B) LIMITATION ON MARITAL TRANSFER
AMOUNT.—The amount of the marital transfer
amount taken into account under subparagraph
(A) shall not exceed the lesser of—
‘‘(i) $600,000, or
‘‘(ii) the excess of the sum referred to
in section 2001(b)(1) over $600,000.
‘‘(2) 
ESTATES
TAXABLE
UNDER
SECTION
2101.—If the estate of the decedent is taxable under
section 2101, the applicable marital transfer credit
shall be determined under the principles of para-
graph (1) with the following modifications—
‘‘(A) the $600,000 amount set forth in
subparagraph (B)(i) shall be reduced by the de-
duction equivalent of the unified credit, and
‘‘(B) the deduction equivalent of the uni-
fied credit shall be substituted for ‘$600,000’
each place it appears in paragraph (1) other
than subparagraph (B)(i).
‘‘(d) SPOUSE BECOMES CITIZEN.—This section shall
not apply in any case in which paragraph (1) of section
2056(d) does not apply by reason of paragraph (4) of such
section.
‘‘(e) OTHER DEFINITIONS.—For purposes of this
section—
‘‘(1) QUALIFIED
INTERNATIONAL
ORGANIZA-
TION EMPLOYEE.—The term ‘qualified international
organization employee’ means any full-time employee
of an international organization whose principal
place of employment with such organization is in the
United States.
‘‘(2) MARITAL TRANSFER AMOUNT.—The term
‘marital transfer amount’ means the amount which
would have been allowable as a deduction under sec-
tion 2056 or 2106(a)(3) (whichever is applicable) if
section 2056 were applied without regard to sub-
section (d) thereof.
‘‘(3) ADJUSTED
TAXABLE
GIFTS.—The term
‘adjusted taxable gifts’ has the same meaning as
when used in section 2001 or 2101, whichever is ap-
plicable.
‘‘(4) DEDUCTION
EQUIVALENT
OF
UNIFIED
CREDIT.—The term ‘deduction equivalent of unified
credit’ means, with respect to any estate taxable
under section 2101, the amount on which the ten-
tative tax determined under section 2001(c) would
equal the unified credit allowed under section
2102(c).’’
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter C of chapter 11 of such Code is amended
by adding at the end the following new item:
‘‘Sec. 2210. Credit equivalent to limited marital deduction in case
of certain employees of international organiza-
tions.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to the estates of decedents dying
after the date of the enactment of this Act.
Æ