An Act to amend the Internal Revenue Code of 1939 to provide a credit against the estate tax for Federal estate taxes paid on certain prior transfers
PL 84-417 (H.R.7054), enacted 02/20/1956

26 
PUBLIC LAW 416-FEB. 20, 195^ 
[70 STAT. 
Public Law 416 
CHAPTER 65 
February 20, 1956 
^^ 
A C T 
—[H. R. 6857]— rji^ authorize the Administrator of the General Services Administration to convc^y 
certain land to the city of Milwaukee, AVisconsin. 
Be it enacted hy the Senate and Houm of Representatives 
of the 
co^e^lnc'e.*'^^' United States of America in Congress asse?nhled, That the Administra-
tor of the General Services Administration is authorized and directed 
to convey by quitclaim deed a parcel of land containing approximately 
forty one-hundredths acre, which has been declared surplus by the 
United States Coast Guard, to the city of Milwaukee, a municipal 
subdivision of the State of Wisconsin: Provided^ That the city of 
Milwaukee remove and dispose of the buildings located on the said 
parcel of land without cost to the United States Government. 
SEC. 2. The legal description of the land to be conveyed mider this 
Act is as follows: 
(1) Beginning at United States Government monument number 307 
on the north pier of the harbor entrance; running thence easterly 
along the extension of a line passing through United States Govern-
ment monuments 305 and 307 on said north pier 12.00 feet to a point; 
thence north 2 degrees 43 minutes 21 seconds west 115.00 feet to a 
point; thence south 87 degrees 1(5 minutes 39 seconds west 110.00 feet 
to a point; thence south 2 degrees -13 minutes 21 seconds east 115.00 
feet to a point on the line passing through the United States Govern-
ment monuments numbers 305 and 307; thence north 87 degrees 16 
minutes 39 seconds east along said line between monuments 98.00 feet, 
to the point of beginning, being a parcel of land in the north half 
fractional section 33, township 7 north, range 22 east, in the third 
ward of the city of Milwaukee, and containing about 0.29 of an acre; 
and 
(2) Beginning at a point on the line passing through the United 
States Government monuments numbers 305 and 307 and distant 98.00 
feet westerly from the United States Government monument numbered 
307; thence north 2 degrees 43 minutes 21 seconds west 32.70 feet to 
a point; thence south 87 degrees 16 minutes 39 seconds west 150.02 
feet to a point; thence south 00 degrees 45 minutes 1 second east 32.72 
feet to a point on the line passing through the United States Govern-
ment monuments numbers 305 and 307; thence easterly along said 
line 151.11 feet to the point of beginning, being a parcel of land in 
the north half fractional section 33, township 7 north, range 22 east, 
in the third ward of the city of Milwaukee, and containing about 0.11 
of an acre. 
Approved February 20, 1956. 
Public Law 417 
CHAPTER 66 
February 20, 1956 
[H. R. 7054] 
TQ amend the Internal Revenue Code of 1939 to provide a credit against the 
estate tax for Federal estate taxes paid on certain prior transfers. 
Be it enacted hy the Senate and House of Representatives 
of the 
^^^^^ 
United States of America in Congress asseinhled^ That subpart I of 
s's'si^at. 120; 68A part I I of Subchapter A of chapter 3 of the Internal Revenue Code 
^*26 use 2001 et of 1939 (relating to computation of estate tax) is hereby amended 
ItT'et^e^e^^*^ ^^' ^^ adding at the end thereof the following new section: 
"SEC. 814. CREDIT FOR TAX ON CERTAIN PRIOR TRANSFERS. 
"(a) GENERAL RULE.—If the executor so elects, the tax imposed by 
sections 810 and 935 in the case of a decedent (but only if the decedent 
Estate taxes. 
Credit. 
70 S T A T . ] 
PUBLIC LAW 4 1 7 - F E B . 20, 1956 
27 
was a citizen or resident of the United States at the time of his death) 
dying after December 31, 1951, shall be credited with all or a part of 
the amount of the Federal estate tax paid with respect to the transfer 
of property (including property passing as a result of the exercise 
or nonexercise of a power of appointment) to the decedent by or from 
a person (herein designated as a 'transferor') who was the spouse of 
the decedent at the time of such person's death and who died within 
two years before the decedent's death. The credit shall be the amount 
determined under subsections (b) and (c). 
"(b) COMPUTATION OF CREDIT.—Subject to the limitation prescribed 
in subsection (c), the credit provided by this section shall be an amount 
which bears the same ratio to the estate tax paid (adjusted as indi-
cated hereinafter) with respect to the estate of the transferor as tho 
value of the property transferred bears to the net estate of the trans-
feror (determined for purposes of the tax imposed by section 935) 
decreased by any death taxes paid with respect to such estate and 
increased by the exemption provided for by section 935 (c) in deter-
mining the net estate of the transferor for purposes of the estate tax. 
For purposes of the preceding sentence, the estate tax paid shall be 
the Federal estate tax paid increased by any credits allowed against 
such estate tax under sections 813 (a) and 936 (b) on account of gift 
tax, and for any credits allowed against such estate tax under this 
section on account of prior transfei's where the transferor acquired 
property from a person Avho died within two years before the death 
of the decedent. 
"' (c) LIMITATION ON CREDIT.— 
"'(l) I N GENERAL,—The credit provided in this section shall 
not exceed the amount by which— 
'"(A) the estate tax imposed by sections 810 and 935 (after 
deducting the credits for State death taxes, gift tax, and 
foreign death taxes provided for in sections 810, 813, and 
936) computed without regard to this section, exceeds 
"(B) such tax computed by excluding from the decedent's 
gross estate the value of sucli property transferred and, if 
applicable, by making the adjustment hereinafter indicated. 
If any deduction is otherwise allowable under section 812 (d) 
(relating to charitable deduction) then, for the purpose of the 
computation indicated in subparagraph (B), the amount of such 
deduction shall be reduced by that part of such deduction which 
the value of such property transferred bears to the decedent's 
entire gross estate reduced by the deductions allowed under sec-
tion 812 (b) (relating to deduction for expenses, losses, etc.). For 
purposes of this section, the value of such property transferred 
shall be the value as provided for in subsection (d) of this section. 
"(2) Two O
R MORE TRANSFERORS.—If the credit provided in this 
section relates to property received from two or more transferors, 
the limitation provided in paragraph (1) of this subsection shall 
be computed by aggregating the value of the property so trans-
ferred to the decedent. The aggregate limitation so determined 
shall be apportioned in accordance with the value of the property 
transferred to the decedent by each transferor. 
"(d) VALUATION OF PROPERTY TRANSFERRED.—The value of prop-
erty transferred to the decedent shall be the value used for the purpose 
of determining the Federal estate tax liability of the estate of the 
transferor but— 
"(1) there shall be taken into account the effect of the tax im-
posed by sections 810 and 935, or any estate, succession, legacy, 
or inheritance tax, on the net value to the decedent of such prop-
erty; 
28 
PUBLIC LAW 418-FEB. 20, 1966 
[70 ST A T , 
Restriction. 
"(2) where such property is encumbered in any manner, or 
where the decedent incurs any obligation imposed by the trans-
feror with respect to such property, such encumbrance or obli-
gation shall be taken into account in the same manner as if the 
amount of a gift to the decedent of such property was being 
determined; and 
"(3) if the decedent was the spouse of the transferor at the 
time of the transferor's death, the net value of the property trans-
ferred to the decedent shall be reduced by the amount allowed 
under section 812 (e) (relating to marital deductions) as a de-
duction from the gross estate of the transferor. 
"(e) PROPERTY DEFINED.—For purposes of this section, the term 
•property' includes any beneficial interest in property, including a 
general power of appointment (as defined in section 811 (f)). 
"(f) 
DENIAL OF DEDUCTION FOR PROPERTY PREVIOUSLY TAXED.—If 
the executor elects the credit provided by this section, the deduction 
provided by section 812 (c) shall not be allowed." 
SEC. 2. No interest shall be allowed or paid on any overpayment 
resulting from the amendment made by the first section of this Act. 
Approved February 20, 1956. 
February 20, 1956 
[H. R. 7fS6] 
Public Law 418 
CHAPTER 67 
AN ACT 
To provide for the conveyance of certain land of the United States to tlie Board 
of County Commissioners of Lee County, Florida. 
Lee County, Fla. 
Conveyance. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled^ That the Adminis-
trator of General Services is authorized and directed to convey to the 
J3oard of County Commissioners of Lee County, Florida, all the right, 
title, and interest of the United States in and to a tract of land in 
Government lot numbered 2, in section 9, township 46 south, range 23 
east, in Lee County, Florida, more particularly described as follows: 
Being a strip of land 350 feet in width, lying at the extreme north-
ward part of the aforesaid Government lot numbered 2 and extending 
eastwardl.y and westwardly between parallel lines entirely across said 
Government lot numbered 2, from the waters of Caloosahatchee River 
on the westward side of said Government lot numbered 2 to an 
unnamed bay on tlie eastward side thereof. The northward boundary 
line of said strip of land is also the northward boundary of the 
aforesaid government lot numbered 2. 
Approved February 20, 1956. 
February 25, 1956 
[S. 180] 
Public Law 419 
CHAPTER 71 
AN ACT 
To authorize the Secretary of the Interior to construct, operate, and maintain 
the Washita River Basin reclamation project, Oklahoma. 
B 
Okla 
Be it enacted hy the Senate and House of Representatives 
of the 
S
'
s
Y
n
*
*
^ ro/Vc*' United States of America in Congress assembled^ That the Secretary 
n pro ec , ^^ ^^^^ Interior is authorized to construct, operate, and maintain the 
Washita River Basin reclamation project, Oklahoma, in accordance 
with the Federal reclamation laws (Act of June 17, 1902, and Acts 
amendatory thereof or supplementary thereto), except so far as those 
laws are inconsistent with this Act, for the principal purposes of stor-
32 Stat. 388. 
43 u s e 371 note.