Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. PHASE-IN OF FULL ESTATE TAX DEDUCTION FOR FAMILY-OWNED
BUSINESS INTERESTS.

(a) Phase-In.--
(1) In general.--Paragraph (2) of section 2057(a) of the
Internal Revenue Code of 1986 (relating to family-owned
business interests) is amended to read as follows:
''(2) Maximum deduction.--
''(A) In general.--The deduction allowed by this
section shall not exceed the sum of--
''(i) the applicable deduction amount, plus
''(ii) in the case of a decedent described
in subparagraph (C), the applicable unused
spousal deduction amount.
''(B) Applicable deduction amount.--For purposes of
subparagraph (A)(i), the applicable deduction amount is
determined in accordance with the following table:

''In the case of estates of The applicable deduction amount
decedents dying after-- is--
December 31, 2000............................. $2,375,000
December 31, 2001............................. $4,375,000
December 31, 2002............................. $6,375,000
December 31, 2003............................. $8,375,000
December 31, 2004............................. $9,375,000.
''(C) Applicable unused spousal deduction amount.--
With respect to a decedent whose immediately
predeceased spouse died after December 31, 2000, and
the estate of such immediately predeceased spouse met
the requirements of subsection (b)(1), the applicable
unused spousal deduction amount for such decedent is
equal to the excess of--
''(i) the applicable deduction amount
allowable under this section to the estate of
such immediately predeceased spouse, over
''(ii) the sum of--
''(I) the applicable deduction
amount allowed under this section to
the estate of such immediately
predeceased spouse, plus
''(II) the amount of any increase
in such estate's unified credit under
paragraph (3)(B) which was allowed to
such estate.''.
(2) Conforming amendments.--Section 2057(a)(3)(B) of such
Code (relating to coordination with unified credit) is
amended--
(A) by striking ''$675,000'' both places it appears
and inserting ''the applicable deduction amount'', and
(B) by striking ''$675,000'' in the heading and
inserting ''applicable deduction amount''.
(3) Effective date.--The amendments made by this subsection
shall apply to estates of decedents dying after December 31,
2000.
(b) Removal of Dollar Limitation.--
(1) In general.--Section 2057(a) of the Internal Revenue
Code of 1986 (relating to deduction for family-owned business
interests), as amended by subsection (a), is amended--
(A) by striking paragraphs (2), (3), and (4), and
(B) by striking ''General Rule.--'' and all that
follows through ''For purposes'' and inserting
''Allowance of Deduction.--For purposes''.
(2) Effective date.--The amendments made by this subsection
shall apply to estates of decedents dying after December 31,
2005.

SEC. 2. INCREASE IN AMOUNT OF UNIFIED CREDIT AGAINST ESTATE AND GIFT
TAXES.

(a) In General.--Subsection (c) of section 2010 of the Internal
Revenue Code of 1986 (relating to applicable credit amount) is amended
to read as follows:
''(c) Applicable Credit Amount.--For purposes of this section--
''(1) In general.--The applicable credit amount is the
amount of the tentative tax which would be determined under the
rate schedule set forth in section 2001(c) if the amount with
respect to which such tentative tax is to be computed were
equal to the sum of--
''(A) the applicable exclusion amount, plus
''(B) in the case of a decedent described in
paragraph (3), the applicable unused spousal exclusion
amount.
''(2) Applicable exclusion amount.--For purposes of
paragraph (1)(A), the applicable exclusion amount is determined
in accordance with the following table:

''In the case of estates of decedents
The applicable
dying, and gifts made, during:
exclusion amount is:
2001 and 2002...................... $1,000,000
2003 and 2004...................... $1,125,000
2005............................... $1,500,000
2006 or thereafter................. $2,000,000.
''(3) Applicable unused spousal exclusion amount.--With
respect to a decedent whose immediately predeceased spouse died
after December 31, 2000, the applicable unused spousal
exclusion amount for such decedent is equal to the excess of--
''(A) the applicable exclusion amount allowable
under this section to the estate of such immediately
predeceased spouse, over
''(B) the applicable exclusion amount allowed under
this section to the estate of such immediately
predeceased spouse.''.
(b) Effective Date.--The amendment made by this section shall apply
to the estates of decedents dying, and gifts made, after December 31,
2000.
Student:
Amends the Internal Revenue Code to phase-in an increase in the maximum deduction allowed for purposes of the family-owned business estate rule to $9.375 million beginning January 1, 2005. Phases-in an increase in the unified credit against estate and gift taxes to $2 million by 2006.