Page:United States Statutes at Large Volume 98 Part 1.djvu/940

 98 STAT. 892 „

PUBLIC LAW 98-369—JULY 18, 1984 (b) CONFORMING AMENDMENT.—The table of sections for part III of subchapter B of chapter 1 is amended by striking out the item relating to section 133 and inserting in lieu thereof the following: "Sec. 133. Interest on certmn loans used to acquire employer securities. "Sec. 134. Cross references to other Act."

26 USC 133 note.

(c) EFFECTIVE DATE.—The amendments made by this section shall apply to loans used to acquire employer securities after the date of the enactment of this Act. SEC. 544. ASSUMPTION OF ESTATE TAX LIABILITY BY EMPLOYER STOCK OWNERSHIP PLAN OR COOPERATIVE RECEIVING EMPLOYER SECURITIES. (a) IN GENERAL.—Subchapter C of chapter 11 (relating to miscellaneous estate tax provisions) is amended by adding at the end thereof the following new section:

< 26 USC 2210.

"SEC. 2210. LIABILITY FOR PAYMENT IN CASE OF TRANSFER OF EMPLOYER SECURITIES TO AN EMPLOYEE STOCK OWNERSHIP PLAN OR A WORKER-OWNED COOPERATIVE. "(a) IN GENERAL.—If—

"(1) employer securities— "(A) are acquired from the decedent by an employee stock ownership plan or by an eligible worker-owned cooperative from any decedent, "(B) pass from the decedent to such a plan or cooperative, or "(C) are transferred by the executor to such a plan or cooperative, and "(2) the executor elects the application of this section and files the agreements described in subsection (e) before the due date (including extensions) for filing the return of tax imposed by section 2001, then the executor is relieved of liability for payment of that portion of the tax imposed by section 2001 which such employee stock ownership plan or cooperative is required to pay under subsection (b). "(b) PAYMENT OF TAX BY EMPLOYEE STOCK OWNERSHIP PLAN OR COOPERATIVE.—

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"(1) IN GENERAL.—An employee stock ownership plan or eligible worker-owned cooperative— "(A) which has acquired employer securities from the decedent, or to which such securities have passed from the decedent or been transferred by the executor, and "(B) with respect to which an agreement described in subsection (e)(1) is in effect, shall pay that portion of the tax imposed by section 2001 with respect to the taxable estate of the decedent which is described in paragraph (2). "(2) AMOUNT OF TAX TO BE PAID.—The portion of the

tax

imposed by section 2001 with respect to the taxable estate of the decedent that is referred to in paragraph (1) is equal to the lesser of— "(A) the value of the employer securities described in subsection (a)(1) which is included in the gross estate of the decedent, or

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