Internal Revenue Code:Sec. 2102. Credits against tax

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle B - Estate and Gift Taxes
       CHAPTER 11 - ESTATE TAX
        Subchapter B - Estates of Nonresidents Not Citizens
      

Statute

    Sec. 2102. Credits against tax
 
    (a) In general
      The tax imposed by section 2101 shall be credited with the
    amounts determined in accordance with sections 2011 to 2013,
    inclusive (relating to State death taxes, gift tax, and tax on
    prior transfers), subject to the special limitation provided in
    subsection (b).
    (b) Special limitation
      The maximum credit allowed under section 2011 against the tax
    imposed by section 2101 for State death taxes paid shall be an
    amount which bears the same ratio to the credit computed as
    provided in section 2011(b) as the value of the property, as
    determined for purposes of this chapter, upon which State death
    taxes were paid and which is included in the gross estate under
    section 2103 bears to the value of the total gross estate under
    section 2103. For purposes of this subsection, the term ''State
    death taxes'' means the taxes described in section 2011(a).
    (c) Unified credit
      (1) In general
        A credit of $13,000 shall be allowed against the tax imposed by
      section 2101.
      (2) Residents of possessions of the United States
        In the case of a decedent who is considered to be a
      ''nonresident not a citizen of the United States'' under section
      2209, the credit under this subsection shall be the greater of -
          (A) $13,000, or
          (B) that proportion of $46,800 which the value of that part
        of the decedent's gross estate which at the time of his death
        is situated in the United States bears to the value of his
        entire gross estate wherever situated.
      (3) Special rules
        (A) Coordination with treaties
          To the extent required under any treaty obligation of the
        United States, the credit allowed under this subsection shall
        be equal to the amount which bears the same ratio to the
        applicable credit amount in effect under section 2010(c) for
        the calendar year which includes the date of death as the value
        of the part of the decedent's gross estate which at the time of
        his death is situated in the United States bears to the value
        of his entire gross estate wherever situated.  For purposes of
        the preceding sentence, property shall not be treated as
        situated in the United States if such property is exempt from
        the tax imposed by this subchapter under any treaty obligation
        of the United States.
        (B) Coordination with gift tax unified credit
          If a credit has been allowed under section 2505 with respect
        to any gift made by the decedent, each dollar amount contained
        in paragraph (1) or (2) or subparagraph (A) of this paragraph
        (whichever applies) shall be reduced by the amount so allowed.
      (4) Limitation based on amount of tax
        The credit allowed under this subsection shall not exceed the
      amount of the tax imposed by section 2101.
      (5) Application of other credits
        For purposes of subsection (a), sections 2011 to 2013,
      inclusive, shall be applied as if the credit allowed under this
      subsection were allowed under section 2010.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 397; Pub. L. 89-809, title I,
    Sec. 108(b), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 94-455, title
    XX, Sec. 2001(c)(1)(E)(i), Oct. 4, 1976, 90 Stat. 1851; Pub. L.
    100-647, title V, Sec. 5032(b), Nov. 10, 1988, 102 Stat. 3669; Pub.
    L. 104-188, title I, Sec. 1704(f)(1), Aug. 20, 1996, 110 Stat.
    1879; Pub. L. 105-34, title V, Sec. 501(a)(1)(E), Aug. 5, 1997, 111
    Stat. 845; Pub. L. 107-16, title V, Sec. 532(c)(7), June 7, 2001,
    115 Stat. 75.)
 

Amendment of Section

                            AMENDMENT OF SECTION
        Pub. L. 107-16, title V, Sec. 532(c)(7), (d), title IX, Sec.
      901, June 7, 2001, 115 Stat. 75, 150, provided that, applicable
      to estates of decedents dying, and generation-skipping transfers,
      after Dec. 31, 2004, this section is temporarily amended as
      follows:
        (1) by amending subsection (a) to read as follows:
    ''(a) In general
      ''The tax imposed by section 2101 shall be credited with the
    amounts determined in accordance with sections 2012 and 2013
    (relating to gift tax and tax on prior transfers).'';
        (2) by striking out subsection (b) and by redesignating
      subsection (c) as subsection (b); and
        (3) in subsection (b)(5),by substituting ''2012 and 2013'' for
      ''2011 to 2013, inclusive,''.
        See Effective and Termination Dates of 2001 Amendment note
      below.
 

Miscellaneous

                                 AMENDMENTS
      1997 - Subsec. (c)(3)(A). Pub. L. 105-34 substituted ''the
    applicable credit amount in effect under section 2010(c) for the
    calendar year which includes the date of death'' for ''$192,800''.
      1996 - Subsec. (c)(3)(A). Pub. L. 104-188 inserted at end ''For
    purposes of the preceding sentence, property shall not be treated
    as situated in the United States if such property is exempt from
    the tax imposed by this subchapter under any treaty obligation of
    the United States.''
      1988 - Subsec. (c)(1). Pub. L. 100-647, Sec. 5032(b)(1)(A),
    substituted ''$13,000'' for ''$3,600''.
      Subsec. (c)(2). Pub. L. 100-647, Sec. 5032(b)(1), substituted
    ''$13,000'' for ''$3,600'' in subpar. (A) and ''$46,800'' for
    ''$15,075'' in subpar. (B).
      Subsec. (c)(3). Pub. L. 100-647, Sec. 5032(b)(2), amended par.
    (3) generally, substituting provision relating to special rules for
    coordination with treaties and with gift tax unified tax credit for
    provision relating to a phase-in of the par. (2)(B) amount for
    decedents dying during 1977, 1978, 1979, and 1980.
      1976 - Subsec. (c). Pub. L. 94-455 added subsec. (c).
      1966 - Pub. L. 89-809 redesignated existing provisions as subsec.
    (a), inserted reference to special limitation provided in subsec.
    (b), and added subsec. (b).
             EFFECTIVE AND TERMINATION DATES OF 2001 AMENDMENT
      Amendment by Pub. L. 107-16 applicable to estates of decedents
    dying, and generation-skipping transfers, after Dec. 31, 2004, see
    section 532(d) of Pub. L. 107-16, set out as a note under section
    2011 of this title.
      Amendment by Pub. L. 107-16 inapplicable to estates of decedents
    dying, gifts made, or generation skipping transfers, after Dec. 31,
    2010, and the Internal Revenue Code of 1986 to be applied and
    administered to such estates, gifts, and transfers as if such
    amendment had never been enacted, see section 901 of Pub. L.
    107-16, set out as a note under section 1 of this title.
                      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 1988 AMENDMENT
      Amendment by Pub. L. 100-647 applicable to estates of decedents
    dying after Nov. 10, 1988, see section 5032(d) of Pub. L. 100-647,
    set out as a note under section 2101 of this title.
                      EFFECTIVE DATE OF 1976 AMENDMENT
      Amendment by 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 1966 AMENDMENT
      Amendment by Pub. L. 89-809 applicable with respect to estates of
    decedents dying after Nov. 13, 1966, see section 108(i) of Pub. L.
    89-809, set out as a note under section 2101 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 2101, 2107, 2108 of this
    title.