
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 532(c)(1)]
[CITE: 26USC2012]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                         CHAPTER 11--ESTATE TAX
 
             Subchapter A--Estates of Citizens or Residents
 
                      PART II--CREDITS AGAINST TAX
 
Sec. 2012. Credit for gift tax


(a) In general

    If a tax on a gift has been paid under chapter 12 (sec. 2501 and 
following), or under corresponding provisions of prior laws, and 
thereafter on the death of the donor any amount in respect of such gift 
is required to be included in the value of the gross estate of the 
decedent for purposes of this chapter, then there shall be credited 
against the tax imposed by section 2001 the amount of the tax paid on a 
gift under chapter 12, or under corresponding provisions of prior laws, 
with respect to so much of the property which constituted the gift as is 
included in the gross estate, except that the amount of such credit 
shall not exceed an amount which bears the same ratio to the tax imposed 
by section 2001 (after deducting from such tax the credit for State 
death taxes provided by section 2011 and the unified credit provided by 
section 2010) as the value (at the time of the gift or at the time of 
the death, whichever is lower) of so much of the property which 
constituted the gift as is included in the gross estate bears to the 
value of the entire gross estate reduced by the aggregate amount of the 
charitable and marital deductions allowed under sections 2055, 2056, and 
2106(a)(2).

(b) Valuation reductions

    In applying, with respect to any gift, the ratio stated in 
subsection (a), the value at the time of the gift or at the time of the 
death, referred to in such ratio, shall be reduced--
        (1) by such amount as will properly reflect the amount of such 
    gift which was excluded in determining (for purposes of section 
    2503(a)), or of corresponding provisions of prior laws, the total 
    amount of gifts made during the calendar quarter (or calendar year 
    if the gift was made before January 1, 1971) in which the gift was 
    made;
        (2) if a deduction with respect to such gift is allowed under 
    section 2056(a) (relating to marital deduction), then by the amount 
    of such value, reduced as provided in paragraph (1); and
        (3) if a deduction with respect to such gift is allowed under 
    sections 2055 or 2106(a)(2) (relating to charitable deduction), then 
    by the amount of such value, reduced as provided in paragraph (1) of 
    this subsection.

(c) Where gift considered made one-half by spouse

    Where the decedent was the donor of the gift but, under the 
provisions of section 2513, or corresponding provisions of prior laws, 
the gift was considered as made one-half by his spouse--
        (1) the term ``the amount of the tax paid on a gift under 
    chapter 12'', as used in subsection (a), includes the amounts paid 
    with respect to each half of such gift, the amount paid with respect 
    to each being computed in the manner provided in subsection (d); and
        (2) in applying, with respect to such gift, the ratio stated in 
    subsection (a), the value at the time of the gift or at the time of 
    the death, referred to in such ratio, includes such value with 
    respect to each half of such gift, each such value being reduced as 
    provided in paragraph (1) of subsection (b).

(d) Computation of amount of gift tax paid

                          (1) Amount of tax

        For purposes of subsection (a), the amount of tax paid on a gift 
    under chapter 12, or under corresponding provisions of prior laws, 
    with respect to any gift shall be an amount which bears the same 
    ratio to the total tax paid for the calendar quarter (or calendar 
    year if the gift was made before January 1, 1971) in which the gift 
    was made as the amount of such gift bears to the total amount of 
    taxable gifts (computed without deduction of the specific exemption) 
    for such quarter or year.

                         (2) Amount of gift

        For purposes of paragraph (1), the ``amount of such gift'' shall 
    be the amount included with respect to such gift in determining (for 
    the purposes of section 2503(a), or of corresponding provisions of 
    prior laws) the total amount of gifts made during such quarter or 
    year, reduced by the amount of any deduction allowed with respect to 
    such gift under section 2522, or under corresponding provisions of 
    prior laws (relating to charitable deduction), or under section 2523 
    (relating to marital deduction).

(e) Section inapplicable to gifts made after December 31, 1976

    No credit shall be allowed under this section with respect to the 
amount of any tax paid under chapter 12 on any gift made after December 
31, 1976.

(Aug. 16, 1954, ch. 736, 68A Stat. 375; Pub. L. 91-614, title I, 
Sec. 102(d)(2), Dec. 31, 1970, 84 Stat. 1841; Pub. L. 94-455, title XIX, 
Sec. 1902(a)(1), title XX, Sec. 2001(a)(3), (c)(1)(B), Oct. 4, 1976, 90 
Stat. 1804, 1848, 1850; Pub. L. 97-34, title IV, Sec. 403(a)(2)(A), Aug. 
13, 1981, 95 Stat. 301.)


                               Amendments

    1981--Subsec. (b)(2). Pub. L. 97-34 substituted ``the amount of such 
value, reduced as provided in paragraph (1)'' for ``an amount which 
bears the same ratio to such value (reduced as provided in paragraph (1) 
of this subsection) as the aggregate amount of the marital deductions 
allowed under section 2056(a) bears to the aggregate amount of such 
marital deductions computed without regard to subsection (c) thereof''.
    1976--Subsec. (a). Pub. L. 94-455, Sec. 2001(c)(1)(B), substituted 
``provided by section 2011 and the unified credit provided by section 
2010'' for ``provided by section 2011''.
    Subsec. (b). Pub. L. 94-455, Sec. 1902(a)(1)(A), added heading and 
substituted a comma for a dash after ``deduction)'' in pars. (2) and 
(3).
    Subsec. (c). Pub. L. 94-455, Sec. 1902(a)(1)(B), added heading.
    Subsec. (d). Pub. L. 94-455, Sec. 1902(a)(1)(C), (D), added headings 
for subsec. (d) and for pars. (1) and (2).
    Subsec. (e). Pub. L. 94-455, Sec. 2001(a)(3), added subsec. (e).
    1970--Subsec. (b)(1). Pub. L. 91-614, Sec. 102(d)(2)(A), substituted 
``the calendar quarter (or calendar year if the gift was made before 
January 1, 1971)'' for ``the year''.
    Subsec. (d). Pub. L. 91-614, Sec. 102(d)(2)(B), substituted ``such 
quarter or year'' for ``such year'' in two places.
    Subsec. (d)(1). Pub. L. 91-614, Sec. 102(d)(2)(A), substituted ``the 
calendar quarter (or calendar year if the gift was made before January 
1, 1971)'' for ``the year''.


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-34 applicable to estates of decedents dying 
after Dec. 31, 1981, but inapplicable under certain conditions under 
will executed before date which is 30 days after Aug. 13, 1981, or under 
trust created by such date, see section 403(e) of Pub. L. 97-34, set out 
as a note under section 2056 of this title.


                    Effective Date of 1976 Amendment

    Amendment by section 1902(a)(1) of Pub. L. 94-455 applicable to 
estates of decedents dying after Oct. 4, 1976, see section 1902(c)(1) of 
Pub. L. 94-455, set out as a note under section 2011 of this title.
    Amendment by section 2001(a)(3), (c)(1)(B) of Pub. L. 94-455 
applicable to estates of decedents dying after Dec. 31, 1976, see 
section 2001(d)(1) of Pub. L. 94-455, set out as a note under section 
2001 of this title.


                    Effective Date of 1970 Amendment

    Amendment by Pub. L. 91-614 applicable with respect to gifts made 
after Dec. 31, 1970, see section 102(e) of Pub. L. 91-614, set out as a 
note under section 2501 of this title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2001, 2013, 2014, 2102, 2107 
of this title.
