< Back to H.R. 324 (105th Congress, 1997–1998)

Text of To amend the Internal Revenue Code of 1986 to increase the unified estate and gift tax credit to an exemption ...

...to an exemption equivalent of $1,200,000, and to provide a cost-of-living adjustment for such amount.

This bill was introduced on January 7, 1997, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jan 7, 1997 (Introduced).

Download PDF

Source: GPO

HR 324 IH

105th CONGRESS

1st Session

H. R. 324

To amend the Internal Revenue Code of 1986 to increase the unified estate and gift tax credit to an exemption equivalent of $1,200,000, and to provide a cost-of-living adjustment for such amount.

IN THE HOUSE OF REPRESENTATIVES

January 7, 1997

Mr. SOLOMON 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 credit to an exemption equivalent of $1,200,000, and to provide a cost-of-living adjustment for such amount.

    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 CREDIT.

    (a) IN GENERAL-

      (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-

      ‘(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 $1,200,000.

      ‘(2) COST-OF-LIVING ADJUSTMENTS- In the case of any decedent dying, and gift made, in a calendar year after 1998, the $1,200,000 amount set forth in paragraph (1) shall be increased by an amount equal to--

        ‘(A) $1,200,000, multiplied by

        ‘(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting ‘calendar year 1997’ 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.’

      (3) Paragraph (1) of section 6018(a) of such Code is amended by striking ‘$600,000’ and inserting ‘the applicable exclusion amount in effect under section 2010(c) (as adjusted under paragraph (2) thereof) for the calendar year which includes the date of death’.

      (4) Paragraph (2) of section 2001(c) of such Code is amended by striking ‘$21,040,000’ and inserting ‘the amount at which the average tax rate under this section is 55 percent’.

      (5) Subparagraph (A) of section 2102(c)(3) of such Code is amended by striking ‘$192,800’ and inserting ‘the applicable credit amount in effect under section 2010(c) for the calendar year which includes the date of death’.

    (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, 1997.