In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
--------
Question: SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ''Emergency
Agricultural Response Act of 1998''.
(b) Table of Contents.--The table of contents of this Act is as
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Use of disaster reserve authority to provide disaster
assistance to certain producers.
Sec. 3. Increase in loan rates for marketing assistance loans for
certain crops.
Sec. 4. Extension of marketing assistance loans.
Sec. 5. Reinstatement of farmer-owned reserve program.
Sec. 6. Strategic food reserve of loan commodities.
Sec. 7. Improved delivery of Farm Service Agency services at local and
area level.
Sec. 8. Temporary conservation reserve to respond to disease
infestations.
Sec. 9. Special crop insurance rules for counties subject to disaster
declaration.
Sec. 10. Doubling of budget authority and appropriations for direct
loan, loan guarantee, and interest rate
reduction programs for fiscal year 1999.

SEC. 2. USE OF DISASTER RESERVE AUTHORITY TO PROVIDE DISASTER
ASSISTANCE TO CERTAIN PRODUCERS.

(a) Provision of Assistance.--Section 813(a) of the Agricultural
Act of 1970 (7 U.S.C. 1427a(a)) is amended by adding at the end the
following:
''The Secretary shall use funds appropriated for the purposes of
this section to make cash payments to agricultural producers to augment
crop insurance benefits for the purpose of alleviating distress caused
by multiple year crop losses.''
(b) Appropriations.--There is hereby appropriated, out of any money
in the Treasury not otherwise appropriated, $1,200,000,000 for the
reserve established under section 813 of the Agricultural Act of 1970
(7 U.S.C. 1427a).
(c) Designation of Emergency.--The amount appropriated under
subsection (b) shall be available only to the extent that the President
submits to Congress an official budget request for a specific dollar
amount that includes designation of the entire amount of the request as
an emergency requirement for the purposes of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 900 et seq.). The
entire amount of the funds is designated by Congress as an emergency
requirement under section 251(b)(2)(A) of the Balanced Budget and
Emergency Deficit Control Act of 1985 (2 U.S.C. 901(b)(2)(A)).

SEC. 3. INCREASE IN LOAN RATES FOR MARKETING ASSISTANCE LOANS FOR
CERTAIN CROPS.

(a) Wheat.--Subsection (a) of section 132 of the Agricultural
Market Transition Act (7 U.S.C. 7232) is amended by striking paragraph
(1) and inserting the following new paragraph:
''(1) Loan rate.--Subject to paragraph (2), the loan rate
for a marketing assistance loan under section 131 for wheat
shall be equal to the greater of--
''(A) 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of wheat, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; and
''(B) 85 percent of the simple average price
received by producers of wheat, as determined by the
Secretary, during the 1994 through 1998 marketing
years, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period.''.
(b) Feed Grains.--Subsection (b) of such section is amended by
striking paragraph (1) and inserting the following new paragraph:
''(1) Loan rate for corn.--Subject to paragraph (2), the
loan rate for a marketing assistance loan under section 131 for
corn shall be equal to the greater of--
''(A) 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of corn, excluding the
year in which the average price was the highest and the
year in which the average price was the lowest in the
period; and
''(B) 85 percent of the simple average price
received by producers of corn, as determined by the
Secretary, during the 1994 through 1998 marketing
years, excluding the year in which the average price
was the highest and the year in which the average price was the lowest
in the period.''.
(c) Upland Cotton.--Subsection (c)(2) of such section is amended by
striking ''or more than $0.5192 per pound''.
(d) Extra Long Staple Cotton.--Subsection (d) of such section is
amended to read as follows:
''(d) Extra Long Staple Cotton.--The loan rate for a marketing
assistance loan under section 131 for extra long staple cotton shall be
equal to the greater of--
''(1) 85 percent of the simple average price received by
producers of extra long staple cotton, as determined by the
Secretary, during 3 years of the 5-year period ending July 31
of the year preceding the year in which the crop is planted,
excluding the year in which the average price was the highest
and the year in which the average price was the lowest in the
period; and
''(2) 85 percent of the simple average price received by
producers of extra long staple cotton, as determined by the
Secretary, during the 1994 through 1998 marketing years,
excluding the year in which the average price was the highest
and the year in which the average price was the lowest in the
period.''.
(e) Rice.--Subsection (e) of such section is amended to read as
follows:
''(e) Rice.--The loan rate for a marketing assistance loan under
section 131 for rice shall be equal to the greater of--
''(1) 85 percent of the simple average price received by
producers of rice, as determined by the Secretary, during the
marketing years for the immediately preceding 5 crops of rice,
excluding the year in which the average price was the highest
and the year in which the average price was the lowest in the
period; and
''(2) 85 percent of the simple average price received by
producers of rice, as determined by the Secretary, during the
1994 through 1998 marketing years, excluding the year in which
the average price was the highest and the year in which the
average price was the lowest in the period; and
''(3) $6.50 per hundredweight.''.
(f) Oilseeds.--Subsection (f) of such section is amended by
striking paragraphs (1) and (2) and inserting the following new
paragraphs:
''(1) Soybeans.--The loan rate for a marketing assistance
loan under section 131 for soybeans shall be equal to the
greater of--
''(A) 85 percent of the simple average price
received by producers of soybeans, as determined by the
Secretary, during the marketing years for the
immediately preceding 5 crops of soybeans, excluding
the year in which the average price was the highest and
the year in which the average price was the lowest in
the period; and
''(B) 85 percent of the simple average price
received by producers of soybeans, as determined by the
Secretary, during the 1994 through 1998 marketing
years, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period.
''(2) Sunflower seed, canola, rapeseed, safflower, mustard
seed, and flaxseed.--The loan rate for a marketing assistance
loan under section 131 for sunflower seed, canola, rapeseed,
safflower, mustard seed, and flaxseed, individually, shall be
equal to the greater of--
''(A) 85 percent of the simple average price
received by producers of such oilseed, as determined by
the Secretary, during the marketing years for the
immediately preceding 5 crops of such oilseed,
excluding the year in which the average price was the
highest and the year in which the average price was the
lowest in the period; and
''(B) 85 percent of the simple average price
received by producers of such oilseed, as determined by
the Secretary, during the 1994 through 1998 marketing
years, excluding the year in which the average price
was the highest and the year in which the average price
was the lowest in the period.''.

SEC. 4. EXTENSION OF MARKETING ASSISTANCE LOANS.

Section 133 of the Agricultural Market Transition Act (7 U.S.C.
7233) is amended by striking subsection (c) and inserting the
following:
''(c) Extension.--The Secretary may extend the term of marketing
assistance loans made to producers under this subtitle for any loan
commodity for a 6-month period if the Secretary determines that the
extension will promote the orderly delivery of the loan commodity,
materially reduce program costs to the Government, or result in a
significant improvement in income for producers.''.

SEC. 5. REINSTATEMENT OF FARMER-OWNED RESERVE PROGRAM.

Section 171(b)(1) of the Agricultural Market Transition Act (7
U.S.C. 7301(b)(1)) is amended by striking subparagraph (E).

SEC. 6. STRATEGIC FOOD RESERVE OF LOAN COMMODITIES.

Subtitle C of the Agricultural Market Transition Act (7 U.S.C. 7231
et seq.) is amended by adding at the end the following new section:

''SEC. 138. STRATEGIC FOOD RESERVE.

''(a) Reserve Required.--The Secretary shall build a reserve stock
of a loan commodity whenever prices for that commodity fall below 75
percent of the loan rate for marketing assistance loans for that
commodity.
''(b) Methods of Acquisition.--Loan commodities for inclusion in
the reserve may be acquired--
''(1) through purchases--
''(A) from producers; or
''(B) in the market, if the Secretary determines
that the purchases will not unduly disrupt the market;
or
''(2) by designation by the Secretary of stocks of loan
commodities of the Commodity Credit Corporation.
''(c) Release of Eligible Commodities.--The Secretary may release
stocks of a loan commodity in the reserve only when there is such a
domestic shortage of the loan commodity that--
''(1) widespread concern exists about the supply of
affordable food for residents of the United States; and
''(2) prices for the commodity exceed 200 percent of the
loan rate for marketing assistance loans for the commodity.
''(d) Administration.--To the maximum extent practicable consistent
with the fulfillment of the purposes of this section and the effective
and efficient administration of this section, the Secretary shall use
the usual and customary channels, facilities, arrangements, and
practices of trade and commerce to release stocks of a loan commodity
maintained in the reserve. The Secretary shall administer the release
of stocks from the reserve so as to ensure that the prices received by
agricultural producers of that commodity are not depressed as a result
of the release.
''(e) Limitation on Total Quantity Acquired.--The Secretary may not
acquire for inclusion in the reserve more than 25 percent of the
average annual production of a loan commodity.
''(f) Management of Commodities.--The Secretary shall provide--
''(1) for the management of loan commodities in the
reserve, including the selection of storage locations; and
''(2) for the periodic rotation or replacement of stocks of
loan commodities in the reserve to avoid spoilage and
deterioration of the commodities.
''(g) Use of Commodity Credit Corporation.--The funds, facilities,
and authorities of the Commodity Credit Corporation shall be used by
the Secretary in carrying out this section, except that any restriction
applicable to the acquisition, storage, or disposition of commodities
owned or controlled by the Commodity Credit Corporation shall not
apply.''.

SEC. 7. IMPROVED DELIVERY OF FARM SERVICE AGENCY SERVICES AT LOCAL AND
AREA LEVEL.

(a) Transfer of Funds for Fiscal Year 1999.--To ensure the prompt
response of the Farm Service Agency during fiscal year 1999 to requests
submitted by producers, the Secretary of Agriculture may transfer to
the Farm Service Agency from other appropriations or funds available to
the agencies or corporations of the Department of Agriculture an amount
equal to not more than 25 percent of the operating budget for that
fiscal year of local and area offices of the Farm Service Agency.
Amounts transferred under this subsection may be used only for
activities at local and area offices of the Farm Service Agency.
(b) Subsequent Years.--The Secretary of Agriculture shall include
in the materials submitted to Congress in support of the budget request
for the Department of Agriculture for each fiscal year a certification
that the amount requested for the operation of local and area offices
of the Farm Service Agency will be sufficient to meet the expected
needs of agricultural producers for services.

SEC. 8. TEMPORARY CONSERVATION RESERVE TO RESPOND TO DISEASE
INFESTATIONS.

Subtitle D of title XII of the Food Security Act of 1985 (16 U.S.C.
3801 et seq.) is amended by inserting after section 1256 the following
new section:

''SEC. 1257. THREE-YEAR CONSERVATION RESERVE FOR DISEASED CROPLANDS.

''(a) Reserve Required.--Using the authority provided in subchapter
B, the Secretary shall formulate and carry out the enrollment of lands
described in subsection (b) in a conservation reserve program through
the use of contracts to assist owners and operators of such lands to
combat plant diseases that have devastated the lands.
''(b) Eligible Lands.--The Secretary shall include in the program
only those croplands that have been devastated by a plant disease for
which effective responses are reasonably anticipated within four years,
but are otherwise suitable for the production of crops or livestock.
''(c) Term of Contract.--A contract under this section shall have a
term of three years.''.

SEC. 9. SPECIAL CROP INSURANCE RULES FOR COUNTIES SUBJECT TO DISASTER
DECLARATION.

(a) Multi-Peril Crop Insurance.--For purposes of administering the
Federal Crop Insurance Act (7 U.S.C. 1501 et seq.) for producers
operating in a county described in subsection (c), the Secretary of
Agriculture may not--
(1) include the producer in any nonstandard classification
list on account of the inclusion of the county in a designated
disaster area; or
(2) determine, without the consent of the producer, the
actual production history of the producer using production
records of any crop year during which the county was included
in a designated disaster area.
(b) Exception.--Subsection (a) shall not apply to a disaster that
the Secretary of Agriculture determines is a reoccurring, frequent, and
well-known risk of farming in the locale, and the risks cannot
reasonably be expected to be controlled or eliminated by crop
protection efforts within a 7-year period.
(c) Covered Counties.--This section applies with respect to a
county that is included in whole or in part in a designated disaster
area.
(d) Designated Disaster Area Defined.--In this section, the term
''designated disaster area'' means an area--
(1) covered by a Presidential declaration of major disaster
issued under section 401 of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C. 5170) on account
of damaging weather or a related condition in the area; or
(2) determined to be a disaster area by the Secretary of
Agriculture under subpart A of part 1945 of title 7, Code of
Federal Regulations, on account of damaging weather or a
related condition in the area.
(e) Effective Date.--This section shall apply beginning with the
1999 crop year for each commodity that is grown in a covered county and
for which multi-peril crop insurance is generally available in the
United States.

SEC. 10. DOUBLING OF BUDGET AUTHORITY AND APPROPRIATIONS FOR DIRECT
LOAN, LOAN GUARANTEE, AND INTEREST RATE REDUCTION
PROGRAMS FOR FISCAL YEAR 1999.

(a) Budget Authority.--
(1) Direct loan and loan guarantee programs.--Section
346(b)(1)(D) of the Consolidated Farm and Rural Development Act
(7 U.S.C. 1994(b)(1)(D)) is amended by striking
''$3,325,000,000'', ''$585,000,000'', ''$85,000,000'',
''$500,000,000'', $2,740,000,000'', ''$690,000,000'', and
''$2,050,000,000'' and inserting ''$6,650,000'',
''$1,170,000,000'', ''$170,000,000'', ''$1,000,000,000'',
''$5,480,000,000'', ''$1,380,000,000'', and ''$4,100,000,000'',
respectively.
(2) Interest rate reduction program.--Section 351 of such
Act (7 U.S.C. 1999) is amended--
(A) in subsection (c), by striking ''4'' and
inserting ''8''; and
(B) in subsection (e)(2), by striking
''$490,000,000'' and inserting ''$980,000,000''.
(b) Appropriations.--Out of any money in the Treasury not otherwise
appropriated, there are appropriated for the fiscal year ending
September 30, 1999:
(1) For gross obligations for the principal amount of
direct and guaranteed loans as authorized by sections 308 and
309 of the Consolidated Farm and Rural Development Act, to be
available from funds in the Agricultural Credit Insurance Fund,
as follows:
(A) Farm ownership loans, $1,021,298,000, of which
$850,000,000 shall be for guaranteed loans.
(B) Operating loans, $3,576,756,000, of which
$1,985,812,000 shall be for unsubsidized guaranteed
loans and $470,000,000 shall be for subsidized
guaranteed loans.
(2) For the cost of direct and guaranteed loans, including
the cost of modifying loans as defined in section 502 of the
Congressional Budget Act of 1974, as follows:
(A) Farm ownership loans, $39,160,000, of which
$13,516,000 shall be for guaranteed loans.
(B) Operating loans, $140,674,000, of which
$23,036,000 shall be for unsubsidized guaranteed loans
and $41,078,000 shall be for subsidized guaranteed
loans.

Answer: Emergency Agricultural Response Act of 1998 - Amends the Agricultural Act of 1970 to authorize the use of disaster reserve authority to augment crop insurance benefits for producers affected by multiple year crop losses. Appropriates funds subject to presidential emergency budget designation.
(Sec. 3) Amends the Agricultural Market Transition Act to revise marketing assistance loan rates for: (1) wheat; (2) feed grains (corn); (3) upland cotton; (4) extra long staple cotton; (5) rice; and (6) oilseeds. Authorizes six-month loan extensions.
(Sec. 5) Repeals the temporary suspension of the farmer owned reserve program.
(Sec. 6) Directs the Secretary of Agriculture to build and manage a reserve stock of a loan commodity whenever such commodity's prices fall below 75 percent of its marketing assistance loan rate.
(Sec. 7) Authorizes the Secretary to transfer specified Department of Agriculture funds to the Farm Service Agency in order to improve local and area Agency services.
(Sec. 8) Amends the Food Security Act of 1985 to direct the Secretary to carry out a three-year conservation reserve for certain diseased croplands.
(Sec. 9) Sets forth specified crop insurance rules for disaster- designated counties.
(Sec. 10) Amends the Consolidated Farm and Rural Development Act to increase FY 1999 budget authority and appropriations for direct loan, loan guarantee, and interest rate reduction programs.

Question: SECTION 1. PERMANENT EXTENSION OF ESTATE TAX AS IN EFFECT IN 2009.

(a) Restoration of Unified Credit Against Gift Tax.--Paragraph (1)
of section 2505(a) (relating to general rule for unified credit against
gift tax), after the application of subsection (f), is amended by
striking ''(determined as if the applicable exclusion amount were
$1,000,000)''.
(b) Exclusion Equivalent of Unified Credit Equal to $3,500,000.--
Subsection (c) of section 2010 of the Internal Revenue Code of 1986
(relating to unified credit against estate tax) is amended to read as
follows:
''(c) Applicable Credit Amount.--
''(1) In general.--For purposes of this section, the
applicable credit amount is the amount of the tentative tax
which would be determined under section 2001(c) if the amount
with respect to which such tentative tax is to be computed were
equal to the applicable exclusion amount.
''(2) Applicable exclusion amount.--
''(A) In general.--For purposes of this subsection,
the applicable exclusion amount is $3,500,000.
''(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting 'calendar year
2009' 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) Maximum Estate Tax Rate Equal to 45 Percent.--
(1) In general.--Subsection (c) of section 2001 of the
Internal Revenue Code of 1986 (relating to imposition and rate
of tax) is amended--
(A) by striking ''but not over $2,000,000'' in the
table contained in paragraph (1),
(B) by striking the last 2 items in such table,
(C) by striking ''(1) in general.--'', and
(D) by striking paragraph (2).
(2) Conforming amendment.--Paragraphs (1) and (2) of
section 2102(b) of such Code are amended to read as follows:
''(1) In general.--A credit in an amount that would be
determined under section 2010 as the applicable credit amount
if the applicable exclusion amount were $60,000 shall be
allowed against the tax imposed by section 2101.
''(2) Residents of possessions of the united states.--In
the case of a decedent who is considered to be a 'nonresident
not a citizen of the United States' under section 2209, the
credit allowed under this subsection shall not be less than the
proportion of the amount that would be determined under section
2010 as the applicable credit amount if the applicable
exclusion amount were $175,000 which the value of that part of
the decedent's gross estate which at the time of the decedent's
death is situated in the United States bears to the value of
the decedent's entire gross estate, wherever situated.''.
(d) Modifications of Estate and Gift Taxes To Reflect Differences
in Unified Credit Resulting From Different Tax Rates.--
(1) Estate tax.--
(A) In general.--Section 2001(b)(2) of the Internal
Revenue Code of 1986 (relating to computation of tax)
is amended by striking ''if the provisions of
subsection (c) (as in effect at the decedent's death)''
and inserting ''if the modifications described in
subsection (g)''.
(B) Modifications.--Section 2001 of such Code is
amended by adding at the end the following new
subsection:
''(g) Modifications to Gift Tax Payable To Reflect Different Tax
Rates.--For purposes of applying subsection (b)(2) with respect to 1 or
more gifts, the rates of tax under subsection (c) in effect at the
decedent's death shall, in lieu of the rates of tax in effect at the
time of such gifts, be used both to compute--
''(1) the tax imposed by chapter 12 with respect to such
gifts, and
''(2) the credit allowed against such tax under section
2505, including in computing--
''(A) the applicable credit amount under section
2505(a)(1), and
''(B) the sum of the amounts allowed as a credit
for all preceding periods under section 2505(a)(2).
For purposes of paragraph (2)(A), the applicable credit amount
for any calendar year before 1998 is the amount which would be
determined under section 2010(c) if the applicable exclusion
amount were the dollar amount under section 6018(a)(1) for such
year.''.
(2) Gift tax.--Section 2505(a) of such Code (relating to
unified credit against gift tax) is amended by adding at the
end the following new flush sentence:
''For purposes of applying paragraph (2) for any calendar year, the
rates of tax in effect under section 2502(a)(2) for such calendar year
shall, in lieu of the rates of tax in effect for preceding calendar
periods, be used in determining the amounts allowable as a credit under
this section for all preceding calendar periods.''.
(e) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.
(f) Additional Modifications to Estate Tax.--
(1) In general.--The following provisions of the Economic
Growth and Tax Relief Reconciliation Act of 2001, and the
amendments made by such provisions, are hereby repealed:
(A) Subtitles A and E of title V.
(B) Subsection (d), and so much of subsection
(f)(3) as relates to subsection (d), of section 511.
(C) Paragraph (2) of subsection (b), and paragraph
(2) of subsection (e), of section 521.
The Internal Revenue Code of 1986 shall be applied as if such
provisions and amendments had never been enacted.
(2) Sunset not to apply.--
(A) Subsection (a) of section 901 of the Economic
Growth and Tax Relief Reconciliation Act of 2001 is
amended by striking ''this Act'' and all that follows
and inserting ''this Act (other than title V) shall not
apply to taxable, plan, or limitation years beginning
after December 31, 2010.''.
(B) Subsection (b) of such section 901 is amended
by striking '', estates, gifts, and transfers''.
(3) Repeal of deadwood.--
(A) Sections 2011, 2057, and 2604 of the Internal
Revenue Code of 1986 are hereby repealed.
(B) The table of sections for part II of subchapter
A of chapter 11 of such Code is amended by striking the
item relating to section 2011.
(C) The table of sections for part IV of subchapter
A of chapter 11 of such Code is amended by striking the
item relating to section 2057.
(D) The table of sections for subchapter A of
chapter 13 of such Code is amended by striking the item
relating to section 2604.

SEC. 2. UNIFIED CREDIT INCREASED BY UNUSED UNIFIED CREDIT OF DECEASED
SPOUSE.

(a) In General.--Section 2010(c) of the Internal Revenue Code of
1986, as amended by section 1(b), is amended by striking paragraph (2)
and inserting the following new paragraphs:
''(2) Applicable exclusion amount.--For purposes of this
subsection, the applicable exclusion amount is the sum of--
''(A) the basic exclusion amount, and
''(B) in the case of a surviving spouse, the
aggregate deceased spousal unused exclusion amount.
''(3) Basic exclusion amount.--
''(A) In general.--For purposes of this subsection,
the basic exclusion amount is $3,500,000.
''(B) Inflation adjustment.--In the case of any
decedent dying in a calendar year after 2010, the
dollar amount in subparagraph (A) shall be increased by
an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section 1(f)(3) for such
calendar year by substituting 'calendar year
2009' 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.
''(4) Aggregate deceased spousal unused exclusion amount.--
For purposes of this subsection, the term 'aggregate deceased
spousal unused exclusion amount' means the lesser of--
''(A) the basic exclusion amount, or
''(B) the sum of the deceased spousal unused
exclusion amounts computed with respect to each
deceased spouse of the surviving spouse.
''(5) Deceased spousal unused exclusion amount.--For
purposes of this subsection, the term 'deceased spousal unused
exclusion amount' means, with respect to the surviving spouse
of any deceased spouse dying after December 31, 2009, the
excess (if any) of--
''(A) the basic exclusion amount of the deceased
spouse, over
''(B) the amount with respect to which the
tentative tax is determined under section 2001(b)(1) on
the estate of such deceased spouse.
''(6) Special rules.--
''(A) Election required.--A deceased spousal unused
exclusion amount may not be taken into account by a
surviving spouse under paragraph (5) unless the
executor of the estate of the deceased spouse files an
estate tax return on which such amount is computed and
makes an election on such return that such amount may
be so taken into account. Such election, once made,
shall be irrevocable. No election may be made under
this subparagraph if such return is filed after the
time prescribed by law (including extensions) for
filing such return.
''(B) Examination of prior returns after expiration
of period of limitations with respect to deceased
spousal unused exclusion amount.--Notwithstanding any
period of limitation in section 6501, after the time
has expired under section 6501 within which a tax may
be assessed under chapter 11 or 12 with respect to a
deceased spousal unused exclusion amount, the Secretary
may examine a return of the deceased spouse to make
determinations with respect to such amount for purposes
of carrying out this subsection.
''(7) Regulations.--The Secretary shall prescribe such
regulations as may be necessary or appropriate to carry out
this subsection.''.
(b) Conforming Amendments.--
(1) Paragraph (1) of section 2505(a) of the Internal
Revenue Code of 1986, as amended by section 1(a), is amended to
read as follows:
''(1) the applicable credit amount in effect under section
2010(c) which would apply if the donor died as of the end of
the calendar year, reduced by''.
(2) Section 2631(c) of such Code is amended by striking
''the applicable exclusion amount'' and inserting ''the basic
exclusion amount''.
(3) Section 6018(a)(1) of such Code is amended by striking
''applicable exclusion amount'' and inserting ''basic exclusion
amount''.
(c) Effective Date.--The amendments made by this section shall
apply to estates of decedents dying, generation-skipping transfers, and
gifts made, after December 31, 2009.

SEC. 3. SENSE OF THE SENATE REGARDING REVENUE NEUTRALITY.

It is the sense of the Senate that any reduction in Federal
revenues resulting from the provisions of, and amendments made by, this
Act should be fully offset.

Answer: Amends the Internal Revenue Code to: (1) establish a permanent estate tax exclusion of $3.5 million ($7 million for married couples filing joint tax returns) and a maximum 45% tax rate for decedents dying, generation-skipping transfers, and gifts made, after December 31, 2009; (2) allow an annual inflation adjustment to the exclusion amount after 2010; and (3) allow a surviving spouse an increase in the estate tax exclusion by the unused exclusion amount of a deceased spouse.

Expresses the sense of the Senate that any reduction in federal revenues resulting from this Act should be fully offset.

Question: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Creating Jobs From Innovative Small
Businesses Act of 2015''.

SEC. 2. CREDIT FOR INVESTMENTS IN SMALL TECHNOLOGY INNOVATION
COMPANIES.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

''SEC. 45S. RESEARCH INTENSIVE INVESTMENT TAX CREDIT.

''(a) Allowance of Credit.--For purposes of section 38, the
research intensive investment tax credit determined under this section
for the taxable year is an amount equal to 20 percent of the amount
paid by the taxpayer during such year to acquire a qualified equity
investment in a qualified research intensive small business concern.
''(b) Maximum Credit.--
''(1) In general.--The taxpayer's credit determined under
this section for the taxable year shall not exceed the excess
(if any) of--
''(A) $100,000, over
''(B) the taxpayer's (and any predecessor's)
aggregate credit determined under this section for all
prior taxable years.
''(2) Related parties.--
''(A) In general.--For purposes of paragraph (1),
all related persons shall be treated as 1 person, and
the dollar amount in paragraph (1)(A) shall be
allocated among such persons under regulations
prescribed by the Secretary.
''(B) Related persons.--A person shall be treated
as related to another person if the relationship
between such persons would result in the disallowance
of losses under section 267 or 707(b).
''(c) Definitions.--For purposes of this section--
''(1) Qualified equity investment.--
''(A) In general.--The term 'qualified equity
investment' means any equity investment in a qualified
research intensive small business concern if--
''(i) such investment is acquired by the
taxpayer at its original issue (directly or
through an underwriter) solely in exchange for
cash, and
''(ii) such investment is designated for
purposes of this section by such concern.
''(B) Equity investment.--The term 'equity
investment' means--
''(i) any stock (other than nonqualified
preferred stock as defined in section
351(g)(2)) in an entity which is a corporation,
and
''(ii) any capital interest in an entity
which is a partnership.
''(C) Redemptions.--A rule similar to the rule of
section 1202(c)(3) shall apply for purposes of this
subsection.
''(2) Qualified research intensive small business
concern.--The term 'qualified research intensive small business
concern' means, with respect to any taxable year, any small
business concern (as defined in section 3 of the Small Business
Act) if--
''(A) such concern employs an average of fewer than
500 employees on business days during such year, and
''(B) at least 50 percent of the gross expenditures
of such entity for such year are research or
experimental expenditures under section 174.
''(d) National Limitation on Amount of Investments Designated.--
''(1) In general.--There is a research intensive investment
tax credit limitation for each calendar year. Such limitation
is--
''(A) $500,000,000 for 2015,
''(B) $750,000,000 for 2016 and 2017, and
''(C) $1,000,000,000 for 2018 and 2019.
''(2) Allocation of limitation.--The limitation under
paragraph (1) shall be allocated by the Secretary among
qualified research intensive small business concerns selected
by the Secretary.
''(3) Carryover of unused limitation.--If the research
intensive investment tax credit limitation for any calendar
year exceeds the aggregate amount allocated under paragraph (2)
for such year, such limitation for the succeeding calendar year
shall be increased by the amount of such excess. No amount may
be carried under the preceding sentence to any calendar year
after 2023.
''(e) Certain Taxpayers Not Eligible.--No credit shall be
determined under this section for any equity investment in any
qualified research intensive small business concern made by any
individual who, at the time of the investment, is--
''(1) an employee of such concern, or
''(2) a member of the family (within the meaning of section
267(c)(4)) of an employee of such concern.
''(f) Basis Reduction.--The basis of any qualified equity
investment shall be reduced by the amount of any credit determined
under this section with respect to such investment. This subsection
shall not apply for purposes of sections 1202, 1400B, and 1400F.
''(g) Regulations.--The Secretary shall prescribe such regulations
as may be appropriate to carry out this section, including
regulations--
''(1) which prevent the abuse of the purposes of this
section,
''(2) which impose appropriate reporting requirements, and
''(3) which apply the provisions of this section to newly
formed entities.''.
(b) Credit Made Part of General Business Credit.--Subsection (b) of
section 38 of such Code (relating to current year business credit) is
amended by striking ''plus'' at the end of paragraph (35), by striking
the period at the end of paragraph (36) and inserting '', plus'', and
by adding at the end the following new paragraph:
''(37) the research intensive investment tax credit
determined under section 45S.''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:

''Sec. 45S. Research intensive investment tax credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to investments made after December 31, 2014, in taxable years
ending after such date.

Answer:
Creating Jobs From Innovative Small Businesses Act of 2015 Amends the Internal Revenue Code to allow a general business tax credit of 20% of the amount paid to acquire an equity investment in a qualified research intensive small business concern. Defines "qualified research intensive small business concern" as a small business concern that employs an average of fewer than 500 employees during a year and devotes at least 50% of its gross expenditures to research and experimentation.