HR601-119

1. Short title This Act may be cited as the Estate Tax Rate Reduction Act.

2. Reduction of rate of tax on estates, gifts, and generation-skipping transfers Section 2001 of the Internal Revenue Code of 1986 is amended— by striking subsection (c) and inserting the following: For purposes of determining the tentative tax, the rate of tax shall be 20 percent of the amount with respect to which the tentative tax is computed. in subsection (g)(1), by striking rates of tax under subsection (c) and inserting rate of tax under subsection (c). Section 2056A(b)(2) of the Internal Revenue Code of 1986 is amended— in subparagraph (B)(i), by striking highest; and in subparagraph (C), by striking highest. Section 2107(a) of such Code is amended by striking the table contained in and inserting the rate of tax under. Section 2201(a) of such Code is amended by striking the rate schedule set forth in section 2001(c) and inserting the rate of tax under section 2001(c). Section 2641 of such Code is amended to read as follows: For purposes of this chapter, the term applicable rate means, with respect to any generation-skipping transfer, the product of— the rate imposed by section 2001 on the estates of decedents dying at the time of the taxable distribution, taxable termination, or direct skip, as the case may be, and the inclusion ratio with respect to the transfer. Section 2801(a)(1) of such Code is amended by striking the highest rate of tax specified in the table contained in and inserting the rate of tax under. Section 6601(j)(2)(A)(i) of such Code is amended by striking the rate schedule set forth in. The amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2024. The budgetary effects of this section shall not be entered on either PAYGO scorecard maintained pursuant to section 4(d) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 933(d)). The budgetary effects of this section shall not be entered on any PAYGO scorecard maintained for purposes of section 4106 of H. Con. Res. 71 (115th Congress), the concurrent resolution on the budget for fiscal year 2018. (c)Rate of taxFor purposes of determining the tentative tax, the rate of tax shall be 20 percent of the amount with respect to which the tentative tax is computed.; and 2641.Applicable rateFor purposes of this chapter, the term applicable rate means, with respect to any generation-skipping transfer, the product of— (1)the rate imposed by section 2001 on the estates of decedents dying at the time of the taxable distribution, taxable termination, or direct skip, as the case may be, and (2)the inclusion ratio with respect to the transfer..

2641. Applicable rate For purposes of this chapter, the term applicable rate means, with respect to any generation-skipping transfer, the product of— the rate imposed by section 2001 on the estates of decedents dying at the time of the taxable distribution, taxable termination, or direct skip, as the case may be, and the inclusion ratio with respect to the transfer.