26 USC § 2011 - Credit for State death taxes

(a) In general

The tax imposed by section 2001 shall be credited with the amount of any estate, inheritance, legacy, or succession taxes actually paid to any State or the District of Columbia, in respect of any property included in the gross estate (not including any such taxes paid with respect to the estate of a person other than the decedent).

(b) Amount of credit

(1) In general

Except as provided in paragraph (2), the credit allowed by this section shall not exceed the appropriate amount stated in the following table:

If the adjusted taxable estate is:	The maximum tax credit shall be:
Not over $90,000	8/10ths of 1% of the amount by which the adjusted taxable estate exceeds $40,000.
Over $90,000 but not over $140,000	$400 plus 1.6% of the excess over $90,000.
Over $140,000 but not over $240,000	$1,200 plus 2.4% of the excess over $140,000.
Over $240,000 but not over $440,000	$3,600 plus 3.2% of the excess over $240,000.
Over $440,000 but not over $640,000	$10,000 plus 4% of the excess over $440,000.
Over $640,000 but not over $840,000	$18,000 plus 4.8% of the excess over $640,000.
Over $840,000 but not over $1,040,000	$27,600 plus 5.6% of the excess over $840,000.
Over $1,040,000 but not over $1,540,000	$38,800 plus 6.4% of the excess over $1,040,000.
Over $1,540,000 but not over $2,040,000	$70,800 plus 7.2% of the excess over $1,540,000.
Over $2,040,000 but not over $2,540,000	$106,800 plus 8% of the excess over $2,040,000.
Over $2,540,000 but not over $3,040,000	$146,800 plus 8.8% of the excess over $2,540,000
Over $3,040,000 but not over $3,540,000	$190,800 plus 9.6% of the excess over $3,040,000.
Over $3,540,000 but not over $4,040,000	$238,800 plus 10.4% of the excess over $3,540,000.
Over $4,040,000 but not over $5,040,000	$290,800 plus 11.2% of the excess over $4,040,000.
Over $5,040,000 but not over $6,040,000	$402,800 plus 12% of the excess over $5,040,000.
Over $6,040,000 but not over $7,040,000	$522,800 plus 12.8% of the excess over $6,040,000.
Over $7,040,000 but not over $8,040,000	$650,800 plus 13.6% of the excess over $7,040,000.
Over $8,040,000 but not over $9,040,000	$786,800 plus 14.4% of the excess over $8,040,000.
Over $9,040,000 but not over $10,040,000	$930,800 plus 15.2% of the excess over $9,040,000.
Over $10,040,000	$1,082,800 plus 16% of the excess over $10,040,000.

(2) Reduction of maximum credit

(A) In general

In the case of estates of decedents dying after December 31, 2001, the credit allowed by this section shall not exceed the applicable percentage of the credit otherwise determined under paragraph (1).

(B) Applicable percentage In the case of estates of decedents The applicable  dying during: percentage is: 2002 75 percent   2003 50 percent   2004 25 percent.

(3) Adjusted taxable estate

For purposes of this section, the term “adjusted taxable estate” means the taxable estate reduced by $60,000.

(c) Period of limitations on credit

The credit allowed by this section shall include only such taxes as were actually paid and credit therefor claimed within 4 years after the filing of the return required by section 6018, except that—

(1) If a petition for redetermination of a deficiency has been filed with the Tax Court within the time prescribed in section 6213 (a), then within such 4-year period or before the expiration of 60 days after the decision of the Tax Court becomes final.

(2) If, under section 6161 or 6166, an extension of time has been granted for payment of the tax shown on the return, or of a deficiency, then within such 4-year period or before the date of the expiration of the period of the extension.

(3) If a claim for refund or credit of an overpayment of tax imposed by this chapter has been filed within the time prescribed in section 6511, then within such 4-year period or before the expiration of 60 days from the date of mailing by certified mail or registered mail by the Secretary to the taxpayer of a notice of the disallowance of any part of such claim, or before the expiration of 60 days after a decision by any court of competent jurisdiction becomes final with respect to a timely suit instituted upon such claim, whichever is later.

Refund based on the credit may (despite the provisions of sections 6511 and 6512) be made if claim therefor is filed within the period above provided. Any such refund shall be made without interest.

(d) Limitation in cases involving deduction under section 2053(d)

In any case where a deduction is allowed under section 2053 (d) for an estate, succession, legacy, or inheritance tax imposed by a State or the District of Columbia upon a transfer for public, charitable, or religious uses described in section 2055 or 2106 (a)(2), the allowance of the credit under this section shall be subject to the following conditions and limitations:

(1) The taxes described in subsection (a) shall not include any estate, succession, legacy, or inheritance tax for which such deduction is allowed under section 2053 (d).

(2) The credit shall not exceed the lesser of—

(A) the amount stated in subsection (b) on an adjusted taxable estate determined by allowing such deduction authorized by section 2053 (d), or

(B) that proportion of the amount stated in subsection (b) on an adjusted taxable estate determined without regard to such deduction authorized by section 2053 (d) as

(i) the amount of the taxes described in subsection (a), as limited by the provisions of paragraph (1) of this subsection, bears to

(ii) the amount of the taxes described in subsection (a) before applying the limitation contained in paragraph (1) of this subsection.

(3) If the amount determined under subparagraph (B) of paragraph (2) is less than the amount determined under subparagraph (A) of that paragraph, then for purposes of subsection (d) such lesser amount shall be the maximum credit provided by subsection (b).

(e) Limitation based on amount of tax

The credit provided by this section shall not exceed the amount of the tax imposed by section 2001, reduced by the amount of the unified credit provided by section 2010.

(f) Termination

This section shall not apply to the estates of decedents dying after December 31, 2004.

Source

(Aug. 16, 1954, ch. 736, 68A Stat. 374; Feb. 20, 1956, ch. 63, § 3,70 Stat. 24; Pub. L. 85–866, title I, §§ 65(a), 102 (c)(1),Sept. 2, 1958, 72 Stat. 1657, 1674; Pub. L. 86–175, § 3,Aug. 21, 1959, 73 Stat. 397; Pub. L. 94–455, title XIX, §§ 1902(a)(12)(B), 1906(b)(13)(A), title XX, §§ 2001(c)(1)(A), 2004(f)(3),Oct. 4, 1976, 90 Stat. 1806, 1834, 1849, 1872; Pub. L. 97–34, title IV, § 422(e)(2),Aug. 13, 1981, 95 Stat. 316; Pub. L. 107–16, title V, §§ 531(a), 532 (a),June 7, 2001, 115 Stat. 72, 73; Pub. L. 107–134, title I, § 103(b)(1),Jan. 23, 2002, 115 Stat. 2431.)

Amendment of Section

For termination of amendment by section 901 ofPub. L. 107–16, see Effective and Termination Dates of 2001 Amendment note below.

Amendments

2002—Subsecs. (d) to (g). Pub. L. 107–134redesignated subsecs. (e) to (g) as (d) to (f), respectively, and struck out heading and text of former subsec. (d). Text read as follows: “The basic estate tax and the estate tax imposed by the Revenue Act of 1926 shall be 125 percent of the amount determined to be the maximum credit provided by subsection (b). The additional estate tax shall be the difference between the tax imposed by section 2001 or 2101 and the basic estate tax.”

2001—Subsec. (b). Pub. L. 107–16, §§ 531(a), 901, temporarily designated existing provisions as pars. (1) and (3), inserted headings, in par. (1) substituted “Except as provided in paragraph (2), the credit allowed” for “The credit allowed”, and added par. (2). See Effective and Termination Dates of 2001 Amendment note below.

Subsec. (g). Pub. L. 107–16, §§ 532(a), 901, temporarily added subsec. (g). See Effective and Termination Dates of 2001 Amendment note below.

1981—Subsec. (c)(2). Pub. L. 97–34struck out reference to section 6166A.

1976—Subsec. (a). Pub. L. 94–455, § 1902(a)(12)(B), struck out “or Territory” after “State”.

Subsec. (b). Pub. L. 94–455, § 2001(c)(1)(A)(i), (ii), substituted “adjusted taxable estate” for “taxable estate” in two places in table and inserted provision that, for purposes of this section, “adjusted taxable estate” means the taxable estate reduced by $60,000.

Subsec. (c)(2). Pub. L. 94–455, § 2004(f)(3), substituted “section 6161, 6166, or 6166A” for “section 6161”.

Subsec. (c)(3). Pub. L. 94–455, § 1906(b)(13)(A), struck out “or his delegate” after “Secretary”.

Subsec. (e). Pub. L. 94–455, §§ 1902(a)(12)(B), 2001 (c)(1)(A)(iii), substituted “adjusted taxable estate” for “taxable estate” in par. (2) and struck out “or Territory” after “imposed by a State” in provisions preceding par. (1).

Subsec. (f). Pub. L. 94–455, § 2001(c)(1)(A)(iv), added subsec. (f).

1959—Subsec. (e). Pub. L. 86–175substituted “imposed by a State or Territory or the District of Columbia upon a transfer” for “imposed upon a transfer” in introduction, “such deduction” for “a deduction” in par. (1) and “such deduction” for “the deduction” in two places in par. (2).

1958—Subsec. (a). Pub. L. 85–866, § 102(c)(1), struck out “or any possession of the United States,” after “District of Columbia,”.

Subsec. (c)(3). Pub. L. 85–866, § 65(a), added par. (3).

1956—Subsec. (e). Act Feb. 20, 1956, added subsec. (e).

Effective Date of 2002 Amendment

Pub. L. 107–134, title I, § 103(d),Jan. 23, 2002, 115 Stat. 2431, provided that:

“(1) Effective date.—The amendments made by this section [amending this section and sections 2053 and 2201 of this title] shall apply to estates of decedents—

“(A) dying on or after September 11, 2001; and

“(B) in the case of individuals dying as a result of the April 19, 1995, terrorist attack, dying on or after April 19, 1995.

“(2) Waiver of limitations.—If refund or credit of any overpayment of tax resulting from the amendments made by this section is prevented at any time before the close of the 1-year period beginning on the date of the enactment of this Act [Jan. 23, 2002] by the operation of any law or rule of law (including res judicata), such refund or credit may nevertheless be made or allowed if claim therefor is filed before the close of such period.”

Effective and Termination Dates of 2001 Amendment

Pub. L. 107–16, title V, § 531(b),June 7, 2001, 115 Stat. 73, as amended by Pub. L. 108–311, title IV, § 408(b)(6),Oct. 4, 2004, 118 Stat. 1192, provided that: “The amendments made by this section [amending this section] shall apply to estates of decedents dying after December 31, 2001.”

Pub. L. 107–16, title V, § 532(d),June 7, 2001, 115 Stat. 75, provided that: “The amendments made by this section [enacting section 2058 of this title and amending this section and sections 2012 to 2016, 2053, 2056A, 2102, 2106, 2107, 2201, 2604, 6511, and 6612 of this title] shall apply to estates of decedents dying, and generation-skipping transfers, after December 31, 2004.”

Amendment by Pub. L. 107–16inapplicable to estates of decedents dying, gifts made, or generation skipping transfers, after Dec. 31, 2012, and the Internal Revenue Code of 1986 to be applied and administered to such estates, gifts, and transfers as if such amendment had never been enacted, see section 901 ofPub. L. 107–16, set out as a note under section 1 of this title.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–34applicable to estates of decedents dying after Dec. 31, 1981, see section 422(f)(1) ofPub. L. 97–34, set out as a note under section 6166 of this title.

Effective Date of 1976 Amendment

Section 1902(c)(1) ofPub. L. 94–455, as amended by Pub. L. 95–600, title VII, § 703(j)(12),Nov. 6, 1978, 92 Stat. 2942, provided that: “The amendments made by paragraphs (1) through (8), and paragraphs (12)(A), (B), and (C), of subsection (a) and by subsection (b) [amending this section and sections 2012, 2013, 2016, 2038, 2053, 2055, 2056, 2106, 2107, 2108, 2201, 6167, and 6503 of this title, repealing section 2202 of this title, and enacting provisions set out as a note under section 2201 of this title] shall apply in the case of estates of decedents dying after the date of the enactment of this Act [Oct. 4, 1976], and the amendment made by paragraph (9) of subsection (a) [amending section 2204 of this title] shall apply in the case of estates of decedents dying after December 31, 1970.”

Amendment by section 1902(a)(12)(B) ofPub. L. 94–455applicable with respect to gifts made after Dec. 31, 1976, see section 1902(c)(2) ofPub. L. 94–455, set out as a note under section 2501 of this title.

Amendment by section 2001(c)(1)(A) ofPub. L. 94–455applicable to estates of decedents dying after Dec. 31, 1976, see section 2001(d)(1) ofPub. L. 94–455, set out as a note under section 2001 of this title.

Amendment by section 2004(f)(3) ofPub. L. 94–455applicable to estates of decedents dying after Dec. 31, 1976, see section 2004(g) ofPub. L. 94–455, set out as an Effective Date note under section 6166 of this title.

Effective Date of 1959 Amendment

Amendment by Pub. L. 86–175applicable with respect to estates of decedents dying on or after July 1, 1955, see section 4 ofPub. L. 86–175, set out as a note under section 2053 of this title.

Effective Date of 1958 Amendment

Section 65(c) ofPub. L. 85–866provided that: “The amendment made by subsection (a) [amending this section] shall apply with respect to estates of decedents dying after August 16, 1954. The amendment made by subsection (b) [amending this section] shall apply with respect to estates of decedents dying after February 10, 1939, and on or before August 16, 1954.”

Section 102(d) ofPub. L. 85–866provided that: “The amendments made by this section (other than by subsection (b)) [enacting section 2208 of this title and amending this section and sections 2104 and 2053 of this title] shall apply to the estates of decedents dying after the date of the enactment of this Act [Sept. 2, 1958]. The amendment made by subsection (b) [amending section 2501 of this title] shall apply to gifts made after the date of the enactment of this Act.”

Effective Date of 1956 Amendment

Amendment by act Feb. 20, 1956, applicable to the estates of all decedents dying after Dec. 31, 1953, see section 4 of act Feb. 20, 1956, set out as a note under section 2053 of this title.