What does Preamble of Estate Tax Rate Reduction Act do?

This bill proposes to amend the Internal Revenue Code of 1986. The stated purpose is to reduce the rate of tax on estates, gifts, and generation-skipping transfers.

What does SHORT TITLE. of Estate Tax Rate Reduction Act do?

This bill is formally titled the Estate Tax Rate Reduction Act.

What does REDUCTION OF RATE OF TAX ON ESTATES, GIFTS, AND GENERATION- of Estate Tax Rate Reduction Act do?

This section amends Section 2001 of the Internal Revenue Code of 1986 to establish a 20 percent rate of tax for purposes of determining the tentative tax. The amendments modify several sections of the Internal Revenue Code, including 2056A, 2107, 2201, 2641, 2801, and 6601, primarily by replacing references to rate schedules with references to the rate of tax under section 2001(c). Section 2641 is amended to define 'applicable rate' for generation-skipping transfers as the product of the estate tax rate under section 2001 and the inclusion ratio. The amendments apply to estates of decedents dying, generation-skipping transfers, and gifts made after December 31, 2024. This section is not subject to PAYGO scorecard requirements.

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Estate Tax Rate Reduction Act

Last updated: 1/22/2025 · Introduced: 1/22/2025

Author: Jodey Arrington (R-TX)

TL;DR (AI)

This bill reduces the estate tax rate to 20% for estates, gifts, and generation-skipping transfers.
The bill modifies several sections of the Internal Revenue Code to align with the new 20% rate, including how 'applicable rate' is defined for generation-skipping transfers.
These changes apply to estates and transfers made after December 31, 2024.

119th Congressin committeeOfficial page

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Other Sections

Includes provisions on preamble, short title., and 1 more.

3 sections

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