HR 1278 IH

To amend the Internal Revenue Code of 1986 to repeal the limitation on the estate tax deduction for family-owned business interests.

March 24, 1999

Mr. SMITH of Washington introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to repeal the limitation on the estate tax deduction for family-owned business interests.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Family-Owned Business Survival Act of 1999'.

SEC. 2. REPEAL OF LIMITATION ON ESTATE TAX DEDUCTION FOR FAMILY-OWNED BUSINESS INTERESTS.

(a) IN GENERAL- Subsection (a) of section 2057 of the Internal Revenue Code of 1986 (relating to family-owned business interests) is amended to read as follows:

`(a) ALLOWANCE OF DEDUCTION- For purposes of the tax imposed by section 2001, in the case of an estate of a decedent to which this section applies, the value of the taxable estate shall be determined by deducting from the value of the gross estate the adjusted value of the qualified family-owned business interests of the decedent which are described in subsection (b)(2).'

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to estates of decedents dying after the date of the enactment of this Act.

END