1572 68A Stat. 397.
Ante, p. 1571.
PUBLIC LAW 89-809-NOV. 13, 1966
^^^ CREDITS A G A I N S T T A X. — S e c t l o n 2102 ( r e l a t i n g to credits allowed a g a i n s t estate tax) is amended to read as f o l l o w s: "SEC. 2102. CREDITS AGAINST TAX. u ^^^^ j ^ GENERAL. — The tax i m p o s e d by section 2101 s h a l l b e credited w i t h the a m o u n t s determined in accordance w i t h sections 2011 to 2013, inclusive ( r e l a t i n g to State death taxes, gift tax, and tax on p r i o r transfers), subject to the special l i m i t a t i o n provided i n subsection (b). " (b) S P E C I A L L I M I T A T I O N. — The maximum c r e d i t allowed under section 2011 a g a i n s t the tax imposed by section 2101 for State death taxes paid shall be a n amount which bears the same ratio to the credit c o m p u t e d as provided i n section 2 0 1 1 (b) as the v a l u e of the property, as determined for purposes of t h i s chapter, upon which State death tax e s were p a i d and which is i n c l u d e d i n the gross estate under section 2103 b e a r s to the v a l u e of the to t a l g r o s s estate under section 2103. For purposes of t h i s subsection, the term ' State death tax e s ' means the taxes described i n section 2 0 1 1 (a). " (c)
Post, p. 1573.
Ante, p. 1542.
[80 STAT.
PROPERTY W I T H I N THE UNITED STATES. — S e c t i o n 2104
(relat-
i n g to property w i t h i n the United States) is amended by a d d i t i g a t the e n d thereof the following n e w s u b s e c t i o n: u^Q^ D E B TO B L I G A T I O N S. — For purposes of t h i s subchapter, debt obligations of— " (1) a United States person, or " (2) the United States, a State o r any political subdivision thereof, o r the District of C o l u m b i a, owned and held by a n o n r e s i d e n t not a citizen of the United States s h a l l be deemed property w i t h i n the United States. W i t h respect to estates of decedents d y i n g after December 31, 1972, deposits w i t h a domestic b r a n c h of a foreign corporation, if such b r a n c h is e n g a g e d i n the commercial b a n k i n g business, shall, for purposes of t h i s subchapter, be deemed property w i t h i n the United States. T h i s subsection shall not a p p l y to a debt obligation to which section 2105(b) a p p l i e s o r to a debt o b l i g a t i o n of a domestic corporation if any interest on such obligation, were such interest received by the decedent a t the t i m e of his death, w o u l d be t r e a t e d by reason of section 8 6 1 (a)(1)(B) a s income from sources w i t h o u t the United States. " (d)
PROPERTY W I T H O U T THE UNITED STATES.—Subsection
(b)
of
section 2105 ( r e l a t i n g to b a n k deposits) is amended to read as f o l l o w s: "(b) Ante, p. 1541.
74 Stat. 1000.
CERTAIN B A N K D E P O S I T S, E T C. — For purposes of t h i s sub-
chapter— " (1) a m o u n t s described i n section 861(c) if any interest the r e o n, were such interest received by the decedent a t the t i m e of h i s death, w o u l d be t r e a t e d by reason of section 8 6 1 (a)(1)(A) as income from sources w i t h o u t the United States, and " (2) deposits w i t h a foreign b r a n c h of a domestic corporation or domestic partnership, if such b r a n c h is e n g a g e d i n the commercial b a n k i n g business, shall not be deemed property w i t h i n the United States. " (e)
DEFINITION o r TAXABLE E S T A T E. — Paragraph
(3)
of
section
2 1 0 6 (a) ( r e l a t i n g to deduction of e x e m p t i o n from g r o s s estate) is amended to read as f o l l o w s: "(3)
EXEMPTION.—
"(A) "(B)
74 Stat. 999.
68A Stat. 389.
GENERAL RULE. — A n e x e m p t i o n of $30,000. R E S I D E N T S OF POSSESSIONS O F THE UNITED STATES.—•
I n the case of a decedent w h o is considered to be a 'nonr e s i d e n t not a citizen of the United States ' under the provisions of section 2209, the e x e m p t i o n shall be the g r e a t e r of (i) $30,000, o r ( i i) that proportion of the e x e m p t i o n a u t h o H z e d by section 2052 which the v a l u e of that part of
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