
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)(2)]
[CITE: 26USC2013]

 
                     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. 2013. Credit for tax on prior transfers


(a) General rule

    The tax imposed by section 2001 shall be credited with all or a part 
of the amount of the Federal estate tax paid with respect to the 
transfer of property (including property passing as a result of the 
exercise or non-exercise of a power of appointment) to the decedent by 
or from a person (herein designated as a ``transferor'') who died within 
10 years before, or within 2 years after, the decedent's death. If the 
transferor died within 2 years of the death of the decedent, the credit 
shall be the amount determined under subsections (b) and (c). If the 
transferor predeceased the decedent by more than 2 years, the credit 
shall be the following percentage of the amount so determined--
        (1) 80 percent, if within the third or fourth years preceding 
    the decedent's death;
        (2) 60 percent, if within the fifth or sixth years preceding the 
    decedent's death;
        (3) 40 percent, if within the seventh or eighth years preceding 
    the decedent's death; and
        (4) 20 percent, if within the ninth or tenth years preceding the 
    decedent's death.

(b) Computation of credit

    Subject to the limitation prescribed in subsection (c), the credit 
provided by this section shall be an amount which bears the same ratio 
to the estate tax paid (adjusted as indicated hereinafter) with respect 
to the estate of the transferor as the value of the property transferred 
bears to the taxable estate of the transferor (determined for purposes 
of the estate tax) decreased by any death taxes paid with respect to 
such estate. For purposes of the preceding sentence, the estate tax paid 
shall be the Federal estate tax paid increased by any credits allowed 
against such estate tax under section 2012, or corresponding provisions 
of prior laws, on account of gift tax, and for any credits allowed 
against such estate tax under this section on account of prior transfers 
where the transferor acquired property from a person who died within 10 
years before the death of the decedent.

(c) Limitation on credit

                           (1) In general

        The credit provided in this section shall not exceed the amount 
    by which--
            (A) the estate tax imposed by section 2001 or section 2101 
        (after deducting the credits provided for in sections 2010, 
        2011, 2012, and 2014) computed without regard to this section, 
        exceeds
            (B) such tax computed by excluding from the decedent's gross 
        estate the value of such property transferred and, if 
        applicable, by making the adjustment hereinafter indicated.

    If any deduction is otherwise allowable under section 2055 or 
    section 2106(a)(2) (relating to charitable deduction) then, for the 
    purpose of the computation indicated in subparagraph (B), the amount 
    of such deduction shall be reduced by that part of such deduction 
    which the value of such property transferred bears to the decedent's 
    entire gross estate reduced by the deductions allowed under sections 
    2053 and 2054, or section 2106(a)(1) (relating to deduction for 
    expenses, losses, etc.). For purposes of this section, the value of 
    such property transferred shall be the value as provided for in 
    subsection (d) of this section.

                     (2) Two or more transferors

        If the credit provided in this section relates to property 
    received from 2 or more transferors, the limitation provided in 
    paragraph (1) of this subsection shall be computed by aggregating 
    the value of the property so transferred to the decedent. The 
    aggregate limitation so determined shall be apportioned in 
    accordance with the value of the property transferred to the 
    decedent by each transferor.

(d) Valuation of property transferred

    The value of property transferred to the decedent shall be the value 
used for the purpose of determining the Federal estate tax liability of 
the estate of the transferor but--
        (1) there shall be taken into account the effect of the tax 
    imposed by section 2001 or 2101, or any estate, succession, legacy, 
    or inheritance tax, on the net value to the decedent of such 
    property;
        (2) where such property is encumbered in any manner, or where 
    the decedent incurs any obligation imposed by the transferor with 
    respect to such property, such encumbrance or obligation shall be 
    taken into account in the same manner as if the amount of a gift to 
    the decedent of such property was being determined; and
        (3) if the decedent was the spouse of the transferor at the time 
    of the transferor's death, the net value of the property transferred 
    to the decedent shall be reduced by the amount allowed under section 
    2056 (relating to marital deductions), as a deduction from the gross 
    estate of the transferor.

(e) Property defined

    For purposes of this section, the term ``property'' includes any 
beneficial interest in property, including a general power of 
appointment (as defined in section 2041).

(f) Treatment of additional tax imposed under section 2032A

    If section 2032A applies to any property included in the gross 
estate of the transferor and an additional tax is imposed with respect 
to such property under section 2032A(c) before the date which is 2 years 
after the date of the decedent's death, for purposes of this section--
        (1) the additional tax imposed by section 2032A(c) shall be 
    treated as a Federal estate tax payable with respect to the estate 
    of the transferor; and
        (2) the value of such property and the amount of the taxable 
    estate of the transferor shall be determined as if section 2032A did 
    not apply with respect to such property.

(Aug. 16, 1954, ch. 736, 68A Stat. 377; Pub. L. 94-455, title XIX, 
Sec. 1902(a)(2), title XX, Secs. 2001(c)(1)(C), 2003(c), 2006(b)(2), 
Oct. 4, 1976, 90 Stat. 1804, 1850, 1862, 1888; Pub. L. 99-514, title 
XIV, Sec. 1432(c)(2), Oct. 22, 1986, 100 Stat. 2730; Pub. L. 100-647, 
title I, Sec. 1011A(g)(7), Nov. 10, 1988, 102 Stat. 3481; Pub. L. 105-
34, title X, Sec. 1073(b)(2), Aug. 5, 1997, 111 Stat. 948.)


                               Amendments

    1997--Subsec. (g). Pub. L. 105-34 struck out heading and text of 
subsec. (g). Prior to amendment, text read as follows: ``For purposes of 
this section, the estate tax paid shall not include any portion of such 
tax attributable to section 4980A(d).''
    1988--Subsec. (g). Pub. L. 100-647 added subsec. (g).
    1986--Subsec. (g). Pub. L. 99-514 struck out subsec. (g) which 
provided for treatment of tax imposed on certain generation-skipping 
transfers.
    1976--Subsec. (b). Pub. L. 94-455, Sec. 2001(c)(1)(C)(i), struck out 
``and increased by the exemption provided for by section 2052 or section 
2106(a)(3), or the corresponding provisions of prior laws, in 
determining the taxable estate of the transferor for purposes of the 
estate tax'' after ``death taxes paid with respect to such estate''.
    Subsec. (c)(1)(A). Pub. L. 94-455, Sec. 2001(c)(1)(C)(ii), 
substituted ``credits provided for in sections 2010, 2011, 2012, and 
2014) computed'' for ``credits for State death taxes, gift tax, and 
foreign death taxes provided for in sections 2011, 2012, and 2014) 
computed''.
    Subsec. (d)(3). Pub. L. 94-455, Sec. 1902(a)(2), struck out ``, or 
the corresponding provision of prior law,'' after ``marital 
deductions)''.
    Subsec. (f). Pub. L. 94-455, Sec. 2003(c), added subsec. (f).
    Subsec. (g). Pub. L. 94-455, Sec. 2006(b)(2), added subsec. (g).


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 applicable to estates of decedents dying 
after Dec. 31, 1996, see section 1073(c) of Pub. L. 105-34, set out as 
an Effective Date of Repeal note under section 4980A of this title.


                    Effective Date of 1988 Amendment

    Amendment by Pub. L. 100-647 effective, except as otherwise 
provided, as if included in the provision of the Tax Reform Act of 1986, 
Pub. L. 99-514, to which such amendment relates, see section 1019(a) of 
Pub. L. 100-647, set out as a note under section 1 of this title.


                    Effective Date of 1986 Amendment

    Amendment by Pub. L. 99-514 applicable to generation-skipping 
transfers (within the meaning of section 2611 of this title) made after 
Oct. 22, 1986, except as otherwise provided, see section 1433 of Pub. L. 
99-514, set out as an Effective Date note under section 2601 of this 
title.

                  Section Referred to in Other Sections

    This section is referred to in sections 2056, 2102, 2107 of this 
title.
