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<PRE>[DOCID: f:h88ih.txt]






107th CONGRESS
  1st Session
                                 H. R. 88

  To amend the Internal Revenue Code of 1986 to increase the unified 
credit against estate and gift taxes to the equivalent of a $5,000,000 
    exclusion and to increase the annual gift exclusion to $30,000.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 3, 2001

  Mr. Foley introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to increase the unified 
credit against estate and gift taxes to the equivalent of a $5,000,000 
    exclusion and to increase the annual gift exclusion to $30,000.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Family Equity Preservation Act of 
2001''.

SEC. 2. UNIFIED CREDIT INCREASED TO EQUIVALENT OF $5,000,000 EXCLUSION.

    (a) In General.--Subsection (c) of section 2010 of the Internal 
Revenue Code of 1986 (relating to applicable credit amount) is amended 
by striking all that follows ``were the applicable exclusion amount'' 
and inserting ``. For purposes of the preceding sentence, the 
applicable exclusion amount is $5,000,000.''
    (b) Conforming Amendment.--Subparagraph (A) of section 2057(a)(3) 
of such Code is amended by striking ``$625,000'' and inserting ``the 
excess of the applicable exclusion amount (determined without regard to 
this paragraph) over $675,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to estates of decedents dying, and gifts made, after the date of 
the enactment of this Act.

SEC. 3. ANNUAL EXCLUSION FROM GIFT TAX INCREASED TO $30,000.

    (a) In General.--Subsection (b) of section 2503 of the Internal 
Revenue Code of 1986 (relating to exclusion from gifts) is amended--
            (1) by striking ``$10,000'' each place it appears and 
        inserting ``$30,000'',
            (2) by striking ``1998'' and inserting ``2001'', and
            (3) by striking ``1997'' and inserting ``2000''.
    (b) Effective Date.--The amendment made by this section shall apply 
to gifts made after December 31, 2000.
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