Clerk session vote number: 315
Description: Permanent Estate Tax Relief Act
Bill summary: (This measure has not been amended since it was introduced. The summary has been expanded because action occurred on the measure.)
Permanent Estate Tax Relief Act of 2006 - Amends the Internal Revenue Code to restore the unified estate and gift tax exclusion and increase the exclusion amount to $5 million beginning in 2010. Adjusts such exclusion amount for inflation after 2010.
Lowers the estate tax rate to equal the current long-term capital gains tax rate (i.e., 15% through 2010) for taxable
estates up to $25 million and to twice such tax rate for estates of $25 million or more, beginning in 2010.
Repeals after 2009 the estate tax deduction for estate, inheritance, legacy, or succession taxes paid to states.
Provides that the general termination date of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) (i.e., December 31, 2010) shall not apply to estate, gift, and generation-skipping transfer tax provisions of EGTRRA which are not amended by this Act.
Repeals provisions of EGTRRA relating to carryover basis of estate property to allow heirs to use a date-of-death fair market value for such property after 2009.
Allows a surviving spouse to claim any unused portion of a deceased spouse's estate or gift tax exclusion amount.
Allows a taxpayer election to deduct 60% of the lesser of qualified timber gain or net capital gain for a taxable year. Allows such deduction to taxpayers who do not itemize deductions. Terminates such deduction after 2008.
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Bill titles: To amend the Internal Revenue Code of 1986 to increase the unified credit against the estate tax to an exclusion equivalent of $5,000,000 and to repeal the sunset provision for the estate and generation-skipping taxes, and for other purposes.
Links for more info on the vote: congress.gov