Page:United States Statutes at Large Volume 111 Part 1.djvu/876

 Ill STAT. 852 PUBLIC LAW 105-34—AUG. 5, 1997 "(E) Section 2032A(c)(4) (relating to due date). "(F) Section 2032A(c)(5) (relating to liability for tax; furnishing of bond). "(G) Section 2032A(c)(7) (relating to no tax if use begins within 2 years; active management by eligible qualified heir treated as material participation). "(H) Paragraphs (1) and (3) of section 2032A(d) (relating to election; agreement). "(I) Section 2032A(e)(10) (relating to community property). "(J) Section 2032A(e)(14) (relating to treatment of replacement property acquired in section 1031 or 1033 transactions). "(K) Section 2032A(f) (relating to statute of limitations). "(L) Section 6166(b)(3) (relating to farmhouses and certain other structures taken into account). "(M) Subparagraphs (B), (C), and (D) of section 6166(g)(1) (relating to acceleration of pa5niient). "(N) Section 6324B (relating to special lien for additional estate tax).", (b) CLERICAL AMENDMENT. —The table of sections for part III of subchapter A of chapter 11 is amended by inserting after the item relating to section 2033 the following new item: "Sec. 2033A. Family-owned business exclusion.". 26 USC 2033A (c) EFFECTIVE DATE. —The amendments made by this section iioteshall apply to estates of decedents dying after December 31, 1997. SEC. 503. MODIFICATIONS TO RATE OF INTEREST ON PORTION OF ESTATE TAX EXTENDED UNDER SECTION 6166. (a) IN GENERAL. — Paragraphs (1) and (2) of section 6601(j) (relating to 4-percent rate on certain portion of estate tax extended under section 6166) are amended to read as follows: "(1) IN GENERAL. — I f the time for payment of an amount of tax imposed by chapter 11 is extended as provided in section 6166, then in lieu of the annual rate provided by subsection (a)- "(A) interest on the 2-percent portion of such amount shall be paid at the rate of 2 percent, and "(B) interest on so much of such amount as exceeds the 2-percent portion shall be paid at a rate equal to 45 percent of the annual rate provided by subsection (a). For purposes of this subsection, the amount of any deficiency which is prorated to installments payable under section 6166 shall be treated as an amount of tax payable in installments under such section. "(2) 2-PERCENT PORTION.— For purposes of this subsection, the term *2-percent portion' means the lesser of— "(A)(i) the amount of the tentative tax which would be determined under the rate schedule set forth in section 2001(c) if the amount with respect to which such tentative tax is to be computed were the sum of $1,000,000 and the applicable exclusion amount in effect under section 2010(c), reduced by "(ii) the applicable credit amount in effect under section 2010(c), or "(B) the amount of the tax imposed by chapter 11 which is extended as provided in section 6166.".

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