124 STAT. 3302 PUBLIC LAW 111–312—DEC. 17, 2010 (c) MODIFICATION OF GENERATION-SKIPPING TRANSFER TAX.— In the case of any generation-skipping transfer made after December 31, 2009, and before January 1, 2011, the applicable rate determined under section 2641(a) of the Internal Revenue Code of 1986 shall be zero. (d) MODIFICATIONS OF ESTATE AND GIFT TAXES TO REFLECT DIFFERENCES IN CREDIT RESULTING FROM DIFFERENT TAX RATES.— (1) ESTATE TAX.— (A) IN GENERAL.—Section 2001(b)(2) is amended by striking ‘‘if the provisions of subsection (c) (as in effect at the decedent’s death)’’ and inserting ‘‘if the modifications described in subsection (g)’’. (B) MODIFICATIONS.—Section 2001 is amended by adding at the end the following new subsection: ‘‘(g) MODIFICATIONS TO GIFT TAX PAYABLE TO REFLECT DIF- FERENT TAX RATES.—For purposes of applying subsection (b)(2) with respect to 1 or more gifts, the rates of tax under subsection (c) in effect at the decedent’s death shall, in lieu of the rates of tax in effect at the time of such gifts, be used both to compute— ‘‘(1) the tax imposed by chapter 12 with respect to such gifts, and ‘‘(2) the credit allowed against such tax under section 2505, including in computing— ‘‘(A) the applicable credit amount under section 2505(a)(1), and ‘‘(B) the sum of the amounts allowed as a credit for all preceding periods under section 2505(a)(2).’’. (2) GIFT TAX.—Section 2505(a) is amended by adding at the end the following new flush sentence: ‘‘For purposes of applying paragraph (2) for any calendar year, the rates of tax in effect under section 2502(a)(2) for such calendar year shall, in lieu of the rates of tax in effect for preceding calendar periods, be used in determining the amounts allowable as a credit under this section for all preceding calendar periods.’’. (e) CONFORMING AMENDMENT.—Section 2511 is amended by striking subsection (c). (f) EFFECTIVE DATE.—Except as otherwise provided in this sub- section, the amendments made by this section shall apply to estates of decedents dying, generation-skipping transfers, and gifts made, after December 31, 2009. SEC. 303. APPLICABLE EXCLUSION AMOUNT INCREASED BY UNUSED EXCLUSION AMOUNT OF DECEASED SPOUSE. (a) IN GENERAL.—Section 2010(c), as amended by section 302(a), is amended by striking paragraph (2) and inserting the following new paragraphs: ‘‘(2) APPLICABLE EXCLUSION AMOUNT.—For purposes of this subsection, the applicable exclusion amount is the sum of— ‘‘(A) the basic exclusion amount, and ‘‘(B) in the case of a surviving spouse, the deceased spousal unused exclusion amount. ‘‘(3) BASIC EXCLUSION AMOUNT.— ‘‘(A) IN GENERAL.—For purposes of this subsection, the basic exclusion amount is $5,000,000. ‘‘(B) INFLATION ADJUSTMENT.—In the case of any decedent dying in a calendar year after 2011, the dollar 26 USC 2001 note. Applicability. Applicability. 26 USC 2001. Time period. 26 USC 2641 note.
