Internal Revenue Code:Sec. 2011. Credit for State death taxes

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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. 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:
 
    ---------------------------------------------------------------------
    If the adjusted taxable estate     The maximum tax credit shall be  :
     is:
    ---------------------------------------------------------------------
    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.
                     -------------------------------
      (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.
 

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