Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: 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 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 subsection (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 substituting
'calendar year 2010' for 'calendar year 1992' in subparagraph
(B) thereof.
If any amount as adjusted under the preceding sentence is not a
multiple of $10,000, such amount shall be rounded 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 excess 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--
(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 determined
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 sentence 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.

SEC. 4. EXCLUSION FROM GROSS ESTATE FOR CERTAIN FARMLAND SO LONG AS
FARMLAND USE CONTINUES.

(a) In General.--Part III of subchapter A of chapter 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 decedent 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 qualified 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 decedent'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
''(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 successor thereto and any tenant so long as the
tenant uses the real estate and related property to
produce agricultural or horticultural commodities,
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 subparagraph (B).
''(c) Definitions and Special Rule.--For purposes of this section--
''(1) Qualified farmland.--The term 'qualified 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
''(C) which was acquired from or passed from the
decedent to a qualified heir of the decedent 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 descendant
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 section), reduced by the amount
deductible under paragraph (3) or (4) of section 2053(a).
''(4) Other terms.--Any other term used in this section
which is also used in section 2032A shall have the same meaning
given such term by section 2032A.
''(d) Tax Treatment of Dispositions and Failures To Use for Farming
Purposes.--
''(1) Imposition of recapture tax.--If, at any time after
the decedent's death--
''(A) the qualified heir disposes of any interest
in qualified farmland (other than by a disposition to a
member of his family), or
''(B) the qualified heir ceases to use the real
property which was acquired (or passed) from the
decedent as a farm for farming purposes,
then there is hereby imposed a recapture tax on such
disposition or cessation of use.
''(2) Amount of recapture tax.--
''(A) In general.--The amount of the tax imposed by
paragraph (1) shall be the excess of--
''(i) the tax which would have been imposed
by section 2001 on the estate of the decedent
but determined as if such estate included the
interest in qualified farmland described in
paragraph (1) which was so disposed of or
ceased to be so used, reduced by the credits
allowable against such tax, over
''(ii) the tax imposed by section 2001 on
the estate of the decedent, reduced by such
credits.
For purposes of this paragraph, the value of the interest in
qualified farmland specified in subparagraph (A) shall be the
adjusted value of such interest as of the date of the
disposition or cessation of such interest described in
paragraph (1).
''(B) $8,000,000 exclusion amount.--For purposes of
subparagraph (A), the adjusted value of such interest
shall be reduced by an amount equal to--
''(i) $8,000,000, reduced (but not below
zero) by
''(ii) an amount equal to the amount by
which the adjusted value of all other interests
in such qualified farmland has been reduced
previously by reason of this subparagraph.
''(3) Regulations.--The Secretary may prescribe such
regulations as may be necessary or appropriate to carry out
this subsection, including regulations requiring record keeping
and information reporting, except that the Secretary may not
impose a lien on the estate of the decedent or qualified
farmland for such purposes.
''(e) Application of Other Rules.--Rules similar to the rules of
subsections (e) (other than paragraph (13) thereof), (f), (g), (h), and
(i) of section 2032A shall apply for purposes of this section.
''(f) Election.--The election under this subsection shall be made
on or before the due date (including extensions) for filing the return
of tax imposed by section 2001 and shall be made on such return.''.
(b) Clerical Amendment.--The table of sections for part III of
subchapter A of chapter 11 of such Code is amended by inserting after
the item relating to section 2033 the following new item:

''Sec. 2033A. Exclusion of certain farmland so long as use as farmland
continues.''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying after the date of the enactment of
this Act.
Output:
Family Farm and Small Business Tax Relief Act of 2009 - Extends the estate and gift tax rates in effect in 2009 by eliminating the general terminating date (i.e., December 31, 2010) in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) applicable to such rates.

Amends the Internal Revenue Code to: (1) establish a permanent $3.5 million estate tax exclusion (adjusted for inflation) and a maximum estate and gift tax rate of 45% after 2010; (2) restore after 2010 the estate tax deduction for family-owned business interests and increase the amount of such deduction to $8 million (adjusted annually for inflation); and (3) exclude from the gross estate of a decedent the value of farmland used as a farm for farming purposes.