H.R. 1475 (103rd): To amend the Internal Revenue Code of 1986 to increase the unified estate and gift tax credits.

103rd Congress, 1993–1994. Text as of Mar 24, 1993 (Introduced).

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HR 1475 IH

103d CONGRESS

1st Session

H. R. 1475

To amend the Internal Revenue Code of 1986 to increase the unified estate and gift tax credits.

IN THE HOUSE OF REPRESENTATIVES

March 24, 1993

Mr. SUNDQUIST 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 increase the unified estate and gift tax credits.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. INCREASE IN UNIFIED ESTATE AND GIFT TAX CREDITS.

    (a) ESTATE TAX CREDIT-

      (1) Subsection (a) of section 2010 of the Internal Revenue Code of 1986 (relating to unified credit against estate tax) is amended by striking ‘$192,800’ and inserting ‘the applicable credit amount’.

      (2) Section 2010 of such Code is amended by redesignating subsection (c) as subsection (d) and by inserting after subsection (b) the following new subsection:

    ‘(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 $850,000.

      ‘(2) COST-OF-LIVING ADJUSTMENTS- In the case of any decedent dying in a calendar year after 1994, the $850,000 amount set forth in paragraph (1) shall be increased by an amount equal to--

        ‘(A) $850,000, multiplied by

        ‘(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1994’ for ‘calendar year 1989’ in subparagraph (B) thereof.

      Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $1,000.’

      (3) Paragraph (1) of section 6018(a) of such Code is amended by striking ‘$600,000’ and inserting ‘$850,000 (adjusted as provided in section 2010(c)(2)’.

    (b) UNIFIED GIFT TAX CREDIT- Paragraph (1) of section 2505(a) of such Code is amended by striking ‘$192,800’ and inserting ‘the applicable credit amount in effect under section 2010(c) for such calendar year’.

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to the estates of decedents dying, and gifts made, after December 31, 1993.