Internal Revenue Code:Sec. 2011. Credit for State death taxes
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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. 2011. Credit for State death taxes
(a) In general
The tax imposed by section 2001 shall be credited with the amount
of any estate, inheritance, legacy, or succession taxes actually
paid to any State or the District of Columbia, in respect of any
property included in the gross estate (not including any such taxes
paid with respect to the estate of a person other than the
decedent).
(b) Amount of credit
(1) In general
Except as provided in paragraph (2), the credit allowed by this
section shall not exceed the appropriate amount stated in the
following table:
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If the adjusted taxable estate The maximum tax credit shall be :
is:
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Not over $90,000 8/10ths of 1% of the amount by
which the taxable estate exceeds
$40,000.
Over $90,000 but not over $400 plus 1.6% of the excess over
$140,000 $90,000.
Over $140,000 but not over $1,200 plus 2.4% of the excess
$240,000 over $140,000.
Over $240,000 but not over $3,600 plus 3.2% of the excess
$440,000 over $240,000.
Over $440,000 but not over $10,000 plus 4% of the excess
$640,000 over $440,000.
Over $640,000 but not over $18,000 plus 4.8% of the excess
$840,000 over $640,000.
Over $840,000 but not over $27,600 plus 5.6% of the excess
$1,040,000 over $840,000.
Over $1,040,000 but not over $38,800 plus 6.4% of the excess
$1,540,000 over $1,040,000.
Over $1,540,000 but not over $70,800 plus 7.2% of the excess
$2,040,000 over $1,540,000.
Over $2,040,000 but not over $106,800 plus 8% of the excess
$2,540,000 over $2,040,000.
Over $2,540,000 but not over $146,800 plus 8.8% of the excess
$3,040,000 over $2,540,000
Over $3,040,000 but not over $190,800 plus 9.6% of the excess
$3,540,000 over $3,040,000.
Over $3,540,000 but not over $238,800 plus 10.4% of the excess
$4,040,000 over $3,540,000.
Over $4,040,000 but not over $290,800 plus 11.2% of the excess
$5,040,000 over $4,040,000.
Over $5,040,000 but not over $402,800 plus 12% of the excess
$6,040,000 over $5,040,000.
Over $6,040,000 but not over $522,800 plus 12.8% of the excess
$7,040,000 over $6,040,000.
Over $7,040,000 but not over $650,800 plus 13.6% of the excess
$8,040,000 over $7,040,000.
Over $8,040,000 but not over $786,800 plus 14.4% of the excess
$9,040,000 over $8,040,000.
Over $9,040,000 but not over $930,800 plus 15.2% of the excess
$10,040,000 over $9,040,000.
Over $10,040,000 $1,082,800 plus 16% of the excess
over $10,040,000.
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(2) Reduction of maximum credit
(A) In general
In the case of estates of decedents dying after December 31,
2001, the credit allowed by this section shall not exceed the
applicable percentage of the credit otherwise determined under
paragraph (1).
(B) Applicable percentage
In the case of estates of decedents The applicable
dying during: percentage is:
2002 75 percent
2003 50 percent
2004 25 percent.
(3) Adjusted taxable estate
For purposes of this section, the term ''adjusted taxable
estate'' means the taxable estate reduced by $60,000.
(c) Period of limitations on credit
The credit allowed by this section shall include only such taxes
as were actually paid and credit therefor claimed within 4 years
after the filing of the return required by section 6018, except
that -
(1) If a petition for redetermination of a deficiency has been
filed with the Tax Court within the time prescribed in section
6213(a), then within such 4-year period or before the expiration
of 60 days after the decision of the Tax Court becomes final.
(2) If, under section 6161 or 6166, an extension of time has
been granted for payment of the tax shown on the return, or of a
deficiency, then within such 4-year period or before the date of
the expiration of the period of the extension.
(3) If a claim for refund or credit of an overpayment of tax
imposed by this chapter has been filed within the time prescribed
in section 6511, then within such 4-year period or before the
expiration of 60 days from the date of mailing by certified mail
or registered mail by the Secretary to the taxpayer of a notice
of the disallowance of any part of such claim, or before the
expiration of 60 days after a decision by any court of competent
jurisdiction becomes final with respect to a timely suit
instituted upon such claim, whichever is later.
Refund based on the credit may (despite the provisions of sections
6511 and 6512) be made if claim therefor is filed within the period
above provided. Any such refund shall be made without interest.
(d) Limitation in cases involving deduction under section 2053(d)
In any case where a deduction is allowed under section 2053(d)
for an estate, succession, legacy, or inheritance tax imposed by a
State or the District of Columbia upon a transfer for public,
charitable, or religious uses described in section 2055 or
2106(a)(2), the allowance of the credit under this section shall be
subject to the following conditions and limitations:
(1) The taxes described in subsection (a) shall not include any
estate, succession, legacy, or inheritance tax for which such
deduction is allowed under section 2053(d).
(2) The credit shall not exceed the lesser of -
(A) the amount stated in subsection (b) on an adjusted
taxable estate determined by allowing such deduction authorized
by section 2053(d), or
(B) that proportion of the amount stated in subsection (b) on
an adjusted taxable estate determined without regard to such
deduction authorized by section 2053(d) as (i) the amount of
the taxes described in subsection (a), as limited by the
provisions of paragraph (1) of this subsection, bears to (ii)
the amount of the taxes described in subsection (a) before
applying the limitation contained in paragraph (1) of this
subsection.
(3) If the amount determined under subparagraph (B) of
paragraph (2) is less than the amount determined under
subparagraph (A) of that paragraph, then for purposes of
subsection (d) such lesser amount shall be the maximum credit
provided by subsection (b).
(e) Limitation based on amount of tax
The credit provided by this section shall not exceed the amount
of the tax imposed by section 2001, reduced by the amount of the
unified credit provided by section 2010.
(f) Termination
This section shall not apply to the estates of decedents dying
after December 31, 2004.
Sources
(Aug. 16, 1954, ch. 736, 68A Stat. 374; Feb. 20, 1956, ch. 63, Sec.
3, 70 Stat. 24; Pub. L. 85-866, title I, Sec. 65(a), 102(c)(1),
Sept. 2, 1958, 72 Stat. 1657, 1674; Pub. L. 86-175, Sec. 3, Aug.
21, 1959, 73 Stat. 397; Pub. L. 94-455, title XIX, Sec.
1902(a)(12)(B), 1906(b)(13)(A), title XX, Sec. 2001(c)(1)(A),
2004(f)(3), Oct. 4, 1976, 90 Stat. 1806, 1834, 1849, 1872; Pub. L.
97-34, title IV, Sec. 422(e)(2), Aug. 13, 1981, 95 Stat. 316; Pub.
L. 107-16, title V, Sec. 531(a), 532(a), June 7, 2001, 115 Stat.
72, 73; Pub. L. 107-134, title I, Sec. 103(b)(1), Jan. 23, 2002,
115 Stat. 2431.)
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.
Miscellaneous
AMENDMENTS
2002 - Subsecs. (d) to (g). Pub. L. 107-134 redesignated subsecs.
(e) to (g) as (d) to (f), respectively, and struck out heading and
text of former subsec. (d). Text read as follows: ''The basic
estate tax and the estate tax imposed by the Revenue Act of 1926
shall be 125 percent of the amount determined to be the maximum
credit provided by subsection (b). The additional estate tax shall
be the difference between the tax imposed by section 2001 or 2101
and the basic estate tax.''
2001 - Subsec. (b). Pub. L. 107-16, Sec. 531(a), 901, temporarily
designated existing provisions as pars. (1) and (3), inserted
headings, in par. (1) substituted ''Except as provided in paragraph
(2), the credit allowed'' for ''The credit allowed'', and added
par. (2). See Effective and Termination Dates of 2001 Amendment
note below.
Subsec. (g). Pub. L. 107-16, Sec. 532(a), 901, temporarily added
subsec. (g). See Effective and Termination Dates of 2001 Amendment
note below.
1981 - Subsec. (c)(2). Pub. L. 97-34 struck out reference to
section 6166A.
1976 - Subsec. (a). Pub. L. 94-455, Sec. 1902(a)(12)(B), struck
out ''or Territory'' after ''State''.
Subsec. (b). Pub. L. 94-455, Sec. 2001(c)(1)(A)(i), (ii),
substituted ''adjusted taxable estate'' for ''taxable estate'' and
inserted provision that, for purposes of this section ''adjusted
taxable estate'' means the taxable estate reduced by $60,000.
Subsec. (c)(2). Pub. L. 94-455, Sec. 2004(f)(3), substituted
''section 6161, 6166, or 6166A'' for ''section 6161''.
Subsec. (c)(3). Pub. L. 94-455, Sec. 1906(b)(13)(A), struck out
''or his delegate'' after ''Secretary''.
Subsec. (e). Pub. L. 94-455, Sec. 1902(a)(12)(B),
2001(c)(1)(A)(iii), substituted ''adjusted taxable estate'' for
''taxable estate'' in par. (2) and struck out ''or Territory''
after ''imposed by a State'' in provisions preceding par. (1).
Subsec. (f). Pub. L. 94-455, Sec. 2001(c)(1)(A)(iv), added
subsec. (f).
1959 - Subsec. (e). Pub. L. 86-175 substituted ''imposed by a
State or Territory or the District of Columbia upon a transfer''
for ''imposed upon a transfer'' in introduction, ''such deduction''
for ''a deduction'' in par. (1) and ''such deduction'' for ''the
deduction'' in two places in par. (2).
1958 - Subsec. (a). Pub. L. 85-866, Sec. 102(c)(1), struck out
''or any possession of the United States,'' after ''District of
Columbia,''.
Subsec. (c)(3). Pub. L. 85-866, Sec. 65(a), added par. (3).
1956 - Subsec. (e). Act Feb. 20, 1956, added subsec. (e).
EFFECTIVE DATE OF 2002 AMENDMENT
Pub. L. 107-134, title I, Sec. 103(d), Jan. 23, 2002, 115 Stat.
2431, provided that:
''(1) Effective date. - The amendments made by this section
(amending this section and sections 2053 and 2201 of this title)
shall apply to estates of decedents -
''(A) dying on or after September 11, 2001; and
''(B) in the case of individuals dying as a result of the April
19, 1995, terrorist attack, dying on or after April 19, 1995.
''(2) Waiver of limitations. - If refund or credit of any
overpayment of tax resulting from the amendments made by this
section is prevented at any time before the close of the 1-year
period beginning on the date of the enactment of this Act (Jan. 23,
2002) by the operation of any law or rule of law (including res
judicata), such refund or credit may nevertheless be made or
allowed if claim therefor is filed before the close of such
period.''
EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
Pub. L. 107-16, title V, Sec. 531(b), June 7, 2001, 115 Stat. 73,
provided that: ''The amendments made by this subsection (probably
means this section, amending this section) shall apply to estates
of decedents dying after December 31, 2001.''
Pub. L. 107-16, title V, Sec. 532(d), June 7, 2001, 115 Stat. 75,
provided that: ''The amendments made by this section (enacting
section 2058 of this title and amending this section and sections
2012 to 2016, 2053, 2056A, 2102, 2106, 2107, 2201, 2604, 6511, and
6612 of this title) shall apply to estates of decedents dying, and
generation-skipping transfers, after December 31, 2004.''
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 1981 AMENDMENT
Amendment by Pub. L. 97-34 applicable to estates of decedents
dying after Dec. 31, 1981, see section 422(f)(1) of Pub. L. 97-34,
set out as a note under section 6166 of this title.
EFFECTIVE DATE OF 1976 AMENDMENT
Section 1902(c)(1) of Pub. L. 94-455, as amended by Pub. L.
95-600, title VII, Sec. 703(j)(12), Nov. 6, 1978, 92 Stat. 2942,
provided that: ''The amendments made by paragraphs (1) through (8),
and paragraphs (12)(A), (B), and (C), of subsection (a) and by
subsection (b) (amending this section and sections 2012, 2013,
2016, 2038, 2053, 2055, 2056, 2106, 2107, 2108, 2201, 6167, and
6503 of this title, repealing section 2202 of this title, and
enacting provisions set out as a note under section 2201 of this
title) shall apply in the case of estates of decedents dying after
the date of the enactment of this Act (Oct. 4, 1976), and the
amendment made by paragraph (9) of subsection (a) (amending section
2204 of this title) shall apply in the case of estates of decedents
dying after December 31, 1970.''
Amendment by section 1902(a)(12)(B) of Pub. L. 94-455 applicable
with respect to gifts made after Dec. 31, 1976, see section
1902(c)(2) of Pub. L. 94-455, set out as a note under section 2501
of this title.
Amendment by section 2001(c)(1)(A) of Pub. L. 94-455 applicable
to estates of decedents dying after Dec. 31, 1976, see section
2001(d)(1) of Pub. L. 94-455, set out as a note under section 2001
of this title.
Amendment by section 2004(f)(3) of Pub. L. 94-455 applicable to
estates of decedents dying after Dec. 31, 1976, see section 2004(g)
of Pub. L. 94-455, set out as an Effective Date note under section
6166 of this title.
EFFECTIVE DATE OF 1959 AMENDMENT
Amendment by Pub. L. 86-175 applicable with respect to estates of
decedents dying on or after July 1, 1955, see section 4 of Pub. L.
86-175, set out as a note under section 2053 of this title.
EFFECTIVE DATE OF 1958 AMENDMENT
Section 65(c) of Pub. L. 85-866 provided that: ''The amendment
made by subsection (a) (amending this section) shall apply with
respect to estates of decedents dying after August 16, 1954. The
amendment made by subsection (b) (amending this section) shall
apply with respect to estates of decedents dying after February 10,
1939, and on or before August 16, 1954.''
Section 102(d) of Pub. L. 85-866 provided that: ''The amendments
made by this section (other than by subsection (b)) (enacting
section 2208 of this title and amending this section and sections
2104 and 2053 of this title) shall apply to the estates of
decedents dying after the date of the enactment of this Act (Sept.
2, 1958). The amendment made by subsection (b) (amending section
2501 of this title) shall apply to gifts made after the date of the
enactment of this Act.''
EFFECTIVE DATE OF 1956 AMENDMENT
Amendment by act Feb. 20, 1956, applicable to the estates of all
decedents dying after Dec. 31, 1953, see section 4 of act Feb. 20,
1956, set out as a note under section 2053 of this title.
References
SECTION REFERRED TO IN OTHER SECTIONS
This section is referred to in sections 2012, 2013, 2014, 2015,
2016, 2053, 2056A, 2102, 2106, 2107, 6511, 6612 of this title.
