124 STAT. 3301 PUBLIC LAW 111–312—DEC. 17, 2010 (e) EFFECTIVE DATE.—Except as otherwise provided in this section, the amendments made by this section shall apply to estates of decedents dying, and transfers made, after December 31, 2009. SEC. 302. MODIFICATIONS TO ESTATE, GIFT, AND GENERATION-SKIP - PING TRANSFER TAXES. (a) MODIFICATIONS TO ESTATE TAX.— (1) $5,000,000 APPLICABLE EXCLUSION AMOUNT.—Subsection (c) of section 2010 is amended to read as follows: ‘‘(c) APPLICABLE CREDIT AMOUNT.— ‘‘(1) IN GENERAL.—For purposes of this section, the applicable credit amount is the amount of the tentative tax which would be determined under section 2001(c) if the amount with respect to which such tentative tax is to be computed were equal to the applicable exclusion amount. ‘‘(2) APPLICABLE EXCLUSION AMOUNT.— ‘‘(A) IN GENERAL.—For purposes of this subsection, the applicable exclusion amount is $5,000,000. ‘‘(B) INFLATION ADJUSTMENT.—In the case of any decedent dying in a calendar year after 2011, the dollar amount in subparagraph (A) shall be increased by an amount equal to— ‘‘(i) such dollar amount, multiplied by ‘‘(ii) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by sub- stituting ‘calendar year 2010’ for ‘calendar year 1992’ in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the nearest multiple of $10,000.’’. (2) MAXIMUM ESTATE TAX RATE EQUAL TO 35 PERCENT.— Subsection (c) of section 2001 is amended— (A) by striking ‘‘Over $500,000’’ and all that follows in the table contained in paragraph (1) and inserting the following: ‘‘Over $500,000 ............................ $155,800, plus 35 percent of the excess of such amount over $500,000.’’, (B) by striking ‘‘(1) IN GENERAL.—’ ’, and (C) by striking paragraph (2). (b) MODIFICATIONS TO GIFT TAX.— (1) RESTORATION OF UNIFIED CREDIT AGAINST GIFT TAX.— (A) IN GENERAL.—Paragraph (1) of section 2505(a), after the application of section 301(b), is amended by striking ‘‘(determined as if the applicable exclusion amount were $1,000,000)’’. (B) EFFECTIVE DATE.—The amendment made by this paragraph shall apply to gifts made after December 31, 2010. (2) MODIFICATION OF GIFT TAX RATE.—On and after January 1, 2011, subsection (a) of section 2502 is amended to read as such subsection would read if section 511(d) of the Economic Growth and Tax Relief Reconciliation Act of 2001 had never been enacted. Effective date. 26 USC 2502 note. 26 USC 2505 note. 26 USC 2010. 26 USC 121 note.
