Internal Revenue Code:Sec. 2010. Unified credit against estate tax

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Contents


Location in Internal Revenue Code


     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter A - Estates of Citizens or Residents
         PART II - CREDITS AGAINST TAX
       

Statute

    Sec. 2010. Unified credit against estate tax
 
    (a) General rule
      A credit of the applicable credit amount shall be allowed to the
    estate of every decedent against the tax imposed by section 2001.
    (b) Adjustment to credit for certain gifts made before 1977
      The amount of the credit allowable under subsection (a) shall be
    reduced by an amount equal to 20 percent of the aggregate amount
    allowed as a specific exemption under section 2521 (as in effect
    before its repeal by the Tax Reform Act of 1976) with respect to
    gifts made by the decedent after September 8, 1976.
    (c) Applicable credit amount
      For purposes of this section, 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 the
    applicable exclusion amount determined in accordance with the
    following table:
    In the case of estates of decedents                   The applicable
     dying during:                                  exclusion amount is:
          2002 and 2003                                       $1,000,000
          2004 and 2005                                       $1,500,000
          2006, 2007, and 2008                                $2,000,000
          2009                                               $3,500,000.
    (d) Limitation based on amount of tax
      The amount of the credit allowed by subsection (a) shall not
    exceed the amount of the tax imposed by section 2001.
 

Sources

    (Added Pub. L. 94-455, title XX, Sec. 2001(a)(2), Oct. 4, 1976, 90
    Stat. 1848; amended Pub. L. 97-34, title IV, Sec. 401(a)(1),
    (2)(A), Aug. 13, 1981, 95 Stat. 299; Pub. L. 101-508, title XI,
    Sec. 11801(a)(39), (c)(19)(A), Nov. 5, 1990, 104 Stat. 1388-521,
    1388-528; Pub. L. 105-34, title V, Sec. 501(a)(1)(A), (B), Aug. 5,
    1997, 111 Stat. 845; Pub. L. 107-16, title V, Sec. 521(a), June 7,
    2001, 115 Stat. 71.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        For termination of amendment by section 901 of Pub. L. 107-16,
      see Effective and Termination Dates of 2001 Amendment note below.
 

References in Text

                             REFERENCES IN TEXT
      The Tax Reform Act of 1976, referred to in subsec. (b), is Pub.
    L. 94-455, Oct. 4, 1976, 90 Stat. 1520, as amended.  For complete
    classification of this Act to the Code, see Tables.
      Section 2521 of this title, referred to in subsec. (b), was
    repealed by section 2001(b)(3) of Pub. L. 94-455, applicable to
    gifts made after Dec. 31, 1976.
 

Miscellaneous

                                 AMENDMENTS
      2001 - Subsec. (c). Pub. L. 107-16, Sec. 521(a), 901, in table,
    temporarily substituted provision that in the case of estates of
    decedents dying during the years 2002 and 2003, the years 2004 and
    2005, the years 2006, 2007, and 2008, and the year 2009, the
    applicable exclusion amount is $1,000,000, $1,500,000, $2,000,000,
    and $3,500,000, respectively, for provision that in the case of
    decedents dying, and gifts made, during the year 1998, the year
    1999, the years 2000 and 2001, the years 2002 and 2003, the year
    2004, the year 2005, and the year 2006 or thereafter, the
    applicable exclusion amount is $625,000, $650,000, $675,000,
    $700,000, $850,000, $950,000, and $1,000,000, respectively.  See
    Effective and Termination Dates of 2001 Amendment note below.
      1997 - Subsec. (a). Pub. L. 105-34, Sec. 501(a)(1)(A),
    substituted ''the applicable credit amount'' for ''$192,800''.
      Subsecs. (c), (d). Pub. L. 105-34, Sec. 501(a)(1)(B), added
    subsec. (c) and redesignated former subsec. (c) as (d).
      1990 - Subsecs. (b) to (d). Pub. L. 101-508 redesignated subsecs.
    (c) and (d) as (b) and (c), respectively, and struck out former
    subsec. (b) which provided for a phase-in of the unified credit
    against estate tax.
      1981 - Subsec. (a). Pub. L. 97-34, Sec. 401(a)(1), substituted
    ''$192,800'' for ''$47,000''.
      Subsec. (b). Pub. L. 97-34, Sec. 401(a)(2)(A), struck out
    ''$47,000'' before ''credit'' from heading and in text substituted
    in subsec. (a) substitutions for ''$192,800'' amounts of
    ''$62,800'', ''$79,300'', ''$96,300'', ''$121,800'', and
    ''$155,800'' in the case of decedents dying in 1982, 1983, 1984,
    1985, and 1986, respectively, for subsec. (a) substitutions for
    ''$47,000'' amounts of ''$30,000'', ''$34,000'', ''$38,000'', and
    ''$42,500'' in the case of decedents dying in 1977, 1978, 1979, and
    1980, respectively.
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Pub. L. 107-16, title V, Sec. 521(e), June 7, 2001, 115 Stat. 72,
    provided that:
      ''(1) In general. - Except as provided in paragraphs (2) and (3),
    the amendments made by this section (amending this section and
    sections 2057, 2505, and 2631 of this title) shall apply to estates
    of decedents dying, and gifts made, after December 31, 2001.
      ''(2) Subsection (b)(2). - The amendments made by subsection
    (b)(2) (amending section 2505 of this title) shall apply to gifts
    made after December 31, 2009.
      ''(3) Subsections (c) and (d). - The amendments made by
    subsections (c) and (d) (amending sections 2057 and 2631 of this
    title) shall apply to estates of decedents dying, and
    generation-skipping transfers, after December 31, 2003.''
      Amendment by Pub. L. 107-16 inapplicable to estates of decedents
    dying, gifts made, or generation skipping transfers, after Dec. 31,
    2010, and the Internal Revenue Code of 1986 to be applied and
    administered to such estates, gifts, and transfers as if such
    amendment had never been enacted, see section 901 of Pub. L.
    107-16, set out as a note under section 1 of this title.
                      EFFECTIVE DATE OF 1997 AMENDMENT
      Amendment by Pub. L. 105-34 applicable to estates of decedents
    dying, and gifts made, after Dec. 31, 1997, see section 501(f) of
    Pub. L. 105-34, set out as a note under section 2001 of this title.
                      EFFECTIVE DATE OF 1981 AMENDMENT
      Section 401(c)(1) of Pub. L. 97-34 provided that: ''The
    amendments made by subsection (a) (amending this section and
    section 6018 of this title) shall apply to the estates of decedents
    dying after December 31, 1981''.
                             SAVINGS PROVISION
      For provisions that nothing in amendment by Pub. L. 101-508 be
    construed to affect treatment of certain transactions occurring,
    property acquired, or items of income, loss, deduction, or credit
    taken into account prior to Nov. 5, 1990, for purposes of
    determining liability for tax for periods ending after Nov. 5,
    1990, see section 11821(b) of Pub. L. 101-508, set out as a note
    under section 29 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2011, 2012, 2013, 2014,
    2056A, 2057, 2101, 2102, 2107, 2201, 2505, 2631, 6018, 6601 of this
    title.
 

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