I 
111TH CONGRESS 
1ST SESSION H. R. 4015 
To amend the Internal Revenue Code of 1986 to extend certain estate tax 
provisions and restore and increase the estate tax deduction for certain 
family-owned business interests. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 4, 2009 
Mr. MCNERNEY (for himself and Mr. PERRIELLO) 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 extend 
certain estate tax provisions and restore and increase 
the estate tax deduction for certain family-owned busi-
ness interests. 
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 ‘‘Family Farm and 
Small Business Tax Relief Act of 2009’’. 
SEC. 2. EXTENSION OF 2009 ESTATE AND GIFT TAX LEVELS. 
(a) EGTRRA SUNSET NOT TO APPLY.—Section 901 
of the Economic Growth and Tax Relief Reconciliation Act 
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of 2001 shall not apply to title V of such Act (other than 
subtitles A and E, and sections 511(d) and 521(b)(2), 
thereof). 
(b) $3,500,000 APPLICABLE EXCLUSION AMOUNT.— 
(1) IN
GENERAL.—Subsection (c) of section 
2010 of the Internal Revenue Code of 1986 is 
amended by striking all that follows ‘‘the applicable 
exclusion amount’’ and inserting ‘‘. For purposes of 
the preceding sentence, the applicable exclusion 
amount is $3,500,000.’’. 
(2) INFLATION ADJUSTMENT.—Section 2010 of 
such Code is amended by redesignating subsection 
(d) as subsection (e) and by inserting after sub-
section (c) the following new subsection: 
‘‘(d) COST-OF-LIVING ADJUSTMENT.—In the case of 
any decedent dying in a calendar year after 2011, the 
$3,500,000 amount in subsection (c) shall be increased by 
an amount equal to— 
‘‘(1) such amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for such calendar year by sub-
stituting ‘calendar year 2010’ for ‘calendar year 
1992’ in subparagraph (B) thereof. 
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If any amount as adjusted under the preceding sentence 
is not a multiple of $10,000, such amount shall be round-
ed to the nearest multiple of $10,000.’’. 
(c) 45 PERCENT MAXIMUM RATE.—The table in 
paragraph (1) of section 2001(c) of such Code is amended 
by striking the last 3 items 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.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying, and 
gifts made, after December 31, 2010. 
SEC. 3. RESTORATION OF, AND INCREASE IN, DEDUCTION 
FOR FAMILY-OWNED BUSINESS INTERESTS. 
(a) RESTORATION.—Subsection (j) of section 2057 
(relating to termination) is amended to read as follows: 
‘‘(j) APPLICATION OF SECTION.—This section— 
‘‘(1) shall not apply to estates of decedents 
dying after December 31, 2003, and before January 
1, 2011, but 
‘‘(2) shall apply to estates of decedents dying 
after December 31, 2010.’’. 
(b) INCREASE.— 
(1) IN
GENERAL.—Subsection (a) of section 
2057 is amended— 
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(A) by striking ‘‘$675,000’’ in paragraph 
(2) and inserting ‘‘$8,000,000’’, and 
(B) by striking paragraph (3). 
(2) COST-OF-LIVING ADJUSTMENT.—Subsection 
(a) of section 2057 is amended by adding at the end 
the following new paragraph: 
‘‘(3) COST-OF-LIVING
ADJUSTMENT.—In the 
case of any decedent dying in a calendar year after 
2011, the $8,000,000 amount in paragraph (2) shall 
be increased 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 by substituting ‘calendar year 2010’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as adjusted under the preceding sen-
tence is not a multiple of $10,000, such amount 
shall be rounded to the nearest multiple of 
$10,000.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to estates of decedents dying after 
December 31, 2010. 
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SEC. 4. EXCLUSION FROM GROSS ESTATE FOR CERTAIN 
FARMLAND SO LONG AS FARMLAND USE 
CONTINUES. 
(a) IN GENERAL.—Part III of subchapter A of chap-
ter 11 of the Internal Revenue Code of 1986 (relating to 
gross estate) is amended by inserting after section 2033 
the following new section: 
‘‘SEC. 2033A. EXCLUSION OF CERTAIN FARMLAND SO LONG 
AS USE AS FARMLAND CONTINUES. 
‘‘(a) IN GENERAL.—In the case of an estate of a de-
cedent to which this section applies, if the executor makes 
the election described in subsection (f), the value of the 
gross estate shall not include the adjusted value of quali-
fied farmland included in the estate. 
‘‘(b) ESTATES TO WHICH SECTION APPLIES.—This 
section shall apply to an estate if— 
‘‘(1) the decedent was (at the date of the dece-
dent’s death) a citizen or resident of the United 
States, and 
‘‘(2) during the 8-year period ending on the 
date of the decedent’s death there have been periods 
aggregating 5 years or more during which— 
‘‘(A) the qualified farmland was owned by 
the decedent or a member of the decedent’s 
family, and 
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‘‘(B) there was material participation 
(within the meaning of section 2032A(e)(6)) by 
the decedent or a member of the decedent’s 
family in the operation of such farmland, except 
that ‘material participation’ shall also include 
any rental of real estate and related property 
between the estate of the decedent or any suc-
cessor thereto and any tenant so long as the 
tenant uses the real estate and related property 
to produce agricultural or horticultural com-
modities, including but not limited to livestock, 
bees, poultry, orchards and woodlands, timber 
and fur-bearing animals and wildlife on such 
farmland. 
Rules similar to the rules of paragraphs (4) and (5) 
of section 2032A(b) shall apply for purposes of sub-
paragraph (B). 
‘‘(c) DEFINITIONS AND SPECIAL RULE.—For pur-
poses of this section— 
‘‘(1) QUALIFIED FARMLAND.—The term ‘quali-
fied farmland’ means any real property or other 
property related to the farm operation— 
‘‘(A) which is located in the United States, 
‘‘(B) which is used as a farm for farming 
purposes, and 
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‘‘(C) which was acquired from or passed 
from the decedent to a qualified heir of the de-
cedent and which, on the date of the decedent’s 
death, was being so used by the decedent or a 
member of the decedent’s family. 
‘‘(2) MEMBER
OF
FAMILY.—A member of a 
family, with respect to any individual, means— 
‘‘(A) a member of the family (as defined 
by section 2031A(e)(2)), and 
‘‘(B) includes— 
‘‘(i) a lineal descendant of any spouse 
described in subparagraph (D) of section 
2032A(e)(2), 
‘‘(ii) a lineal descendant of a sibling of 
a parent of such individual, 
‘‘(iii) a spouse of any lineal descend-
ant described in clause (ii), and 
‘‘(iv) a lineal descendant of a spouses 
described in clause (iii). 
‘‘(3) ADJUSTED
VALUE.—The term ‘adjusted 
value’ means the value of farmland for purposes of 
this chapter (determined without regard to this sec-
tion), reduced by the amount deductible under para-
graph (3) or (4) of section 2053(a). 
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