Us Congress 2025-2026 Regular Session

Us Congress Senate Bill SB587 Compare Versions

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Old	New	Differences
1	1	II
2	2	119THCONGRESS
3	3	1
4	4	STSESSION S. 587
5	5	To amend the Internal Revenue Code of 1986 to repeal the estate and
6	6	generation-skipping transfer taxes, and for other purposes.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	FEBRUARY13, 2025
9	9	Mr. T
10	10	HUNE(for himself, Mr. GRASSLEY, Mr. LANKFORD, Mrs. HYDE-SMITH,
11	11	Mr. H
12	12	AGERTY, Mr. DAINES, Mr. TUBERVILLE, Mr. SHEEHY, Mr. JOHN-
13	13	SON, Mr. MULLIN, Mrs. CAPITO, Mr. JUSTICE, Mr. CORNYN, Mr.
14	14	W
15	15	ICKER, Mr. SCOTTof South Carolina, Mrs. BLACKBURN, Mr. TILLIS,
16	16	Mr. B
17	17	UDD, Mr. CRAPO, Mr. HOEVEN, Mr. BARRASSO, Mr. RISCH, Mr.
18	18	B
19	19	OOZMAN, Ms. ERNST, Mr. MORAN, Mr. MARSHALL, Mr. CRAMER, Mr.
20	20	R
21	21	ICKETTS, Mr. SCOTTof Florida, Mr. KENNEDY, Mr. ROUNDS, Ms.
22	22	L
23	23	UMMIS, Mrs. FISCHER, Mr. GRAHAM, Mr. MCCORMICK, Mrs. BRITT,
24	24	Mr. Y
25	25	OUNG, Mr. COTTON, Mr. MCCONNELL, Mr. BANKS, Mr. CURTIS,
26	26	Mr. S
27	27	CHMITT, Mr. LEE, Mr. HAWLEY, Mr. CRUZ, and Mr. MORENO) in-
28	28	troduced the following bill; which was read twice and referred to the Com-
29	29	mittee on Finance
30	30	A BILL
31	31	To amend the Internal Revenue Code of 1986 to repeal
32	32	the estate and generation-skipping transfer taxes, and
33	33	for other purposes.
34	34	Be it enacted by the Senate and House of Representa-1
35	35	tives of the United States of America in Congress assembled, 2
36	36	SECTION 1. SHORT TITLE. 3
37	37	This Act may be cited as the ‘‘Death Tax Repeal Act 4
38	38	of 2025’’. 5
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41	41	•S 587 IS
42	42	SEC. 2. REPEAL OF ESTATE AND GENERATION-SKIPPING 1
43	43	TRANSFER TAXES. 2
44	44	(a) E
45	45	STATETAXREPEAL.—Subchapter C of chapter 3
46	46	11 of subtitle B of the Internal Revenue Code of 1986 4
47	47	is amended by adding at the end the following new section: 5
48	48	‘‘SEC. 2210. TERMINATION. 6
49	49	‘‘(a) I
50	50	NGENERAL.—Except as provided in subsection 7
51	51	(b), this chapter shall not apply to the estates of decedents 8
52	52	dying on or after the date of the enactment of the Death 9
53	53	Tax Repeal Act of 2025. 10
54	54	‘‘(b) C
55	55	ERTAINDISTRIBUTIONSFROMQUALIFIED 11
56	56	D
57	57	OMESTICTRUSTS.—In applying section 2056A with re-12
58	58	spect to the surviving spouse of a decedent dying before 13
59	59	the date of the enactment of the Death Tax Repeal Act 14
60	60	of 2025— 15
61	61	‘‘(1) section 2056A(b)(1)(A) shall not apply to 16
62	62	distributions made after the 10-year period begin-17
63	63	ning on such date, and 18
64	64	‘‘(2) section 2056A(b)(1)(B) shall not apply on 19
65	65	or after such date.’’. 20
66	66	(b) G
67	67	ENERATION-SKIPPINGTRANSFERTAXRE-21
68	68	PEAL.—Subchapter G of chapter 13 of subtitle B of such 22
69	69	Code is amended by adding at the end the following new 23
70	70	section: 24
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73	73	•S 587 IS
74	74	‘‘SEC. 2664. TERMINATION. 1
75	75	‘‘This chapter shall not apply to generation-skipping 2
76	76	transfers on or after the date of the enactment of the 3
77	77	Death Tax Repeal Act of 2025.’’. 4
78	78	(c) C
79	79	ONFORMINGAMENDMENTS.— 5
80	80	(1) The table of sections for subchapter C of 6
81	81	chapter 11 of the Internal Revenue Code of 1986 is 7
82	82	amended by adding at the end the following new 8
83	83	item: 9
84	84	‘‘Sec. 2210. Termination.’’.
85	85	(2) The table of sections for subchapter G of 10
86	86	chapter 13 of such Code is amended by adding at 11
87	87	the end the following new item: 12
88	88	‘‘Sec. 2664. Termination.’’.
89	89	(d) EFFECTIVEDATE.—The amendments made by 13
90	90	this section shall apply to the estates of decedents dying, 14
91	91	and generation-skipping transfers, after the date of the 15
92	92	enactment of this Act. 16
93	93	SEC. 3. MODIFICATIONS OF GIFT TAX. 17
94	94	(a) C
95	95	OMPUTATION OF GIFTTAX.—Subsection (a) of 18
96	96	section 2502 of the Internal Revenue Code of 1986 is 19
97	97	amended to read as follows: 20
98	98	‘‘(a) C
99	99	OMPUTATION OFTAX.— 21
100	100	‘‘(1) I
101	101	N GENERAL.—The tax imposed by section 22
102	102	2501 for each calendar year shall be an amount 23
103	103	equal to the excess of— 24
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106	106	•S 587 IS
107	107	‘‘(A) a tentative tax, computed under para-1
108	108	graph (2), on the aggregate sum of the taxable 2
109	109	gifts for such calendar year and for each of the 3
110	110	preceding calendar periods, over 4
111	111	‘‘(B) a tentative tax, computed under para-5
112	112	graph (2), on the aggregate sum of the taxable 6
113	113	gifts for each of the preceding calendar periods. 7
114	114	‘‘(2) R
115	115	ATE SCHEDULE.— 8
116	116	‘‘If the amount with respect to which the
117	117	tentative tax to be computed is:.
118	118	The tentative
119	119	tax is:
120	120	Not over $10,000 ........................................................... 18% of such amount.
121	121	Over $10,000 but not over $20,000 .............................. $1,800, plus 20% of
122	122	the excess over
123	123	$10,000.
124	124	Over $20,000 but not over $40,000 .............................. $3,800, plus 22% of
125	125	the excess over
126	126	$20,000.
127	127	Over $40,000 but not over $60,000 .............................. $8,200, plus 24% of
128	128	the excess over
129	129	$40,000.
130	130	Over $60,000 but not over $80,000 .............................. $13,000, plus 26% of
131	131	the excess over
132	132	$60,000.
133	133	Over $80,000 but not over $100,000 ............................ $18,200, plus 28% of
134	134	the excess over
135	135	$80,000.
136	136	Over $100,000 but not over $150,000 .......................... $23,800, plus 30% of
137	137	the excess over
138	138	$100,000.
139	139	Over $150,000 but not over $250,000 .......................... $38,800, plus 32% of
140	140	the excess over
141	141	$150,000.
142	142	Over $250,000 but not over $500,000 .......................... $70,800, plus 34% of
143	143	the excess over
144	144	$250,000.
145	145	Over $500,000 ............................................................... $155,800, plus 35% of
146	146	the excess over
147	147	$500,000.’’.
148	148	(b) TREATMENT OF CERTAINTRANSFERS IN 9
149	149	T
150	150	RUST.—Section 2511 of the Internal Revenue Code of 10
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153	153	•S 587 IS
154	154	1986 is amended by adding at the end the following new 1
155	155	subsection: 2
156	156	‘‘(c) T
157	157	REATMENT OF CERTAINTRANSFERS IN 3
158	158	T
159	159	RUST.—Notwithstanding any other provision of this sec-4
160	160	tion and except as provided in regulations, a transfer in 5
161	161	trust shall be treated as a taxable gift under section 2503, 6
162	162	unless the trust is treated as wholly owned by the donor 7
163	163	or the donor’s spouse under subpart E of part I of sub-8
164	164	chapter J of chapter 1.’’. 9
165	165	(c) L
166	166	IFETIMEGIFTEXEMPTION.— 10
167	167	(1) I
168	168	N GENERAL.—Paragraph (1) of section 11
169	169	2505(a) of the Internal Revenue Code of 1986 is 12
170	170	amended to read as follows: 13
171	171	‘‘(1) the amount of the tentative tax which 14
172	172	would be determined under the rate schedule set 15
173	173	forth in section 2502(a)(2) if the amount with re-16
174	174	spect to which such tentative tax is to be computed 17
175	175	were $10,000,000, reduced by’’. 18
176	176	(2) I
177	177	NFLATION ADJUSTMENT .—Section 2505 of 19
178	178	such Code is amended by adding at the end the fol-20
179	179	lowing new subsection: 21
180	180	‘‘(d) I
181	181	NFLATIONADJUSTMENT.— 22
182	182	‘‘(1) I
183	183	N GENERAL.—In the case of any calendar 23
184	184	year after 2011, the dollar amount in subsection 24
185	185	(a)(1) shall be increased by an amount equal to— 25
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188	188	•S 587 IS
189	189	‘‘(A) such dollar amount, multiplied by 1
190	190	‘‘(B) the cost-of-living adjustment deter-2
191	191	mined under section 1(f)(3) for such calendar 3
192	192	year by substituting ‘calendar year 2010’ for 4
193	193	‘calendar year 2016’ in subparagraph (A)(ii) 5
194	194	thereof. 6
195	195	‘‘(2) R
196	196	OUNDING.—If any amount as adjusted 7
197	197	under paragraph (1) is not a multiple of $10,000, 8
198	198	such amount shall be rounded to the nearest mul-9
199	199	tiple of $10,000.’’. 10
200	200	(d) C
201	201	ONFORMINGAMENDMENTS.— 11
202	202	(1) Section 2505(a) of such Code is amended 12
203	203	by striking the last sentence. 13
204	204	(2) The heading for section 2505 of such Code 14
205	205	is amended by striking ‘‘
206	206	UNIFIED’’. 15
207	207	(3) The item in the table of sections for sub-16
208	208	chapter A of chapter 12 of such Code relating to 17
209	209	section 2505 is amended to read as follows: 18
210	210	‘‘Sec. 2505. Credit against gift tax.’’.
211	211	(e) EFFECTIVEDATE.—The amendments made by 19
212	212	this section shall apply to gifts made on or after the date 20
213	213	of the enactment of this Act. 21
214	214	(f) T
215	215	RANSITIONRULE.— 22
216	216	(1) I
217	217	N GENERAL.—For purposes of applying 23
218	218	sections 1015(d), 2502, and 2505 of the Internal 24
219	219	Revenue Code of 1986, the calendar year in which 25
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222	222	•S 587 IS
223	223	this Act is enacted shall be treated as 2 separate cal-1
224	224	endar years one of which ends on the day before the 2
225	225	date of the enactment of this Act and the other of 3
226	226	which begins on such date of enactment. 4
227	227	(2) A
228	228	PPLICATION OF SECTION 2504(b).—For 5
229	229	purposes of applying section 2504(b) of the Internal 6
230	230	Revenue Code of 1986, the calendar year in which 7
231	231	this Act is enacted shall be treated as one preceding 8
232	232	calendar period. 9
233	233	Æ
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