
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-16 Section 521(b)]
[CITE: 26USC2505]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                    Subtitle B--Estate and Gift Taxes
 
                          CHAPTER 12--GIFT TAX
 
              Subchapter A--Determination of Tax Liability
 
Sec. 2505. Unified credit against gift tax


(a) General rule

    In the case of a citizen or resident of the United States, there 
shall be allowed as a credit against the tax imposed by section 2501 for 
each calendar year an amount equal to--
        (1) the applicable credit amount in effect under section 2010(c) 
    for such calendar year, reduced by
        (2) the sum of the amounts allowable as a credit to the 
    individual under this section for all preceding calendar periods.

(b) Adjustment to credit for certain gifts made before 1977

    The amount allowable under subsection (a) shall be reduced by an 
amount equal to 20 percent of the aggregate amount allowed as a specific 
exemption under section 2521 (as in effect before its repeal by the Tax 
Reform Act of 1976) with respect to gifts made by the individual after 
September 8, 1976.

(c) Limitation based on amount of tax

    The amount of the credit allowed under subsection (a) for any 
calendar year shall not exceed the amount of the tax imposed by section 
2501 for such calendar year.

(Added Pub. L. 94-455, title XX, Sec. 2001(b)(2), Oct. 4, 1976, 90 Stat. 
1849; amended Pub. L. 97-34, title IV, Secs. 401(b), 442(a)(5), Aug. 13, 
1981, 95 Stat. 299, 321; Pub. L. 101-508, title XI, Sec. 11801(a)(40), 
(c)(19)(B), Nov. 5, 1990, 104 Stat. 1388-521, 1388-528; Pub. L. 105-34, 
title V, Sec. 501(a)(2), Aug. 5, 1997, 111 Stat. 845.)

                       References in Text

    The Tax Reform Act of 1976, referred to in subsec. (b), is Pub. L. 
94-455, Oct. 4, 1976, 90 Stat. 1520, as amended. Section 2521 of this 
title was repealed by section 2001(b)(3) of Pub. L. 94-455. For complete 
classification of this Act to the Code, see Tables.


                               Amendments

    1997--Subsec. (a)(1). Pub. L. 105-34 substituted ``the applicable 
credit amount in effect under section 2010(c) for such calendar year'' 
for ``$192,800''.
    1990--Subsecs. (b) to (d). Pub. L. 101-508 redesignated subsecs. (c) 
and (d) as subsecs. (b) and (c), respectively, and struck out former 
subsec. (b) which provided for a phase-in of the unified credit against 
gift tax.
    1981--Subsec. (a). Pub. L. 97-34, Sec. 442(a)(5)(A), substituted in 
provision preceding par. (1) ``year'' for ``quarter'', and ``periods'' 
for ``quarters'' in par. (2).
    Subsec. (a)(1). Pub. L. 97-34, Sec. 401(b)(1), substituted 
``$192,800'' for ``$47,000''.
    Subsec. (b). Pub. L. 97-34, Sec. 401(b)(2), struck out from heading 
``$47,000'' before ``credit'', substituted subsec. (a)(1) substitutions 
for ``$192,800'' of amounts of ``$62,800'', ``$79,300'', ``$96,300'', 
``$121,800'', and ``$155,800'' in the case of gifts made in 1982, 1983, 
1984, 1985, and 1986, respectively, for subsec. (a)(1) substitutions for 
``$47,000'' of amounts of ``$6,000'', ``$30,000'', ``$34,000'', 
``$38,000'', and ``$42,500'' in the case of gifts made after Dec. 31, 
1976, and before July 1, 1977, after June 30, 1977, and before Jan. 1, 
1978; after Dec. 31, 1977, and before Jan. 1, 1979, after Dec. 31, 1978, 
and before Jan. 1, 1980, and after Dec. 31, 1979, and before Jan. 1, 
1981, respectively.
    Subsec. (d). Pub. L. 97-34, Sec. 442(a)(5)(B), substituted ``year'' 
for ``quarter'' in two places.


                    Effective Date of 1997 Amendment

    Amendment by Pub. L. 105-34 applicable to estates of decedents 
dying, and gifts made, after Dec. 31, 1997, see section 501(f) of Pub. 
L. 105-34, set out as a note under section 2001 of this title.


                    Effective Date of 1981 Amendment

    Section 401(c)(2) of Pub. L. 97-34 provided that: ``The amendments 
made by subsection (b) [amending this section] shall apply to gifts made 
after such date [Dec. 31, 1981].''
    Amendment by section 442(a)(5) of Pub. L. 97-34 applicable with 
respect to gifts made after Dec. 31, 1981, see section 442(e) of Pub. L. 
97-34, set out as a note under section 2501 of this title.


                            Savings Provision

    For provisions that nothing in amendment by Pub. L. 101-508 be 
construed to affect treatment of certain transactions occurring, 
property acquired, or items of income, loss, deduction, or credit taken 
into account prior to Nov. 5, 1990, for purposes of determining 
liability for tax for periods ending after Nov. 5, 1990, see section 
11821(b) of Pub. L. 101-508, set out as a note under section 29 of this 
title.

                  Section Referred to in Other Sections

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