26 U.S.C. § 2102 — Credits against tax

Page 2618 TITLE 26—INTERNAL REVENUE CODE § 2102 such amendment relates, see section 411(x) of Pub. L. 107–147, set out as a note under section 25B of this title. EFFECTIVE DATE OF 1993 AMENDMENT Amendment by Pub. L. 103–66 applicable in the case of decedents dying and gifts made after Dec. 31, 1992, see section 13208(c) of Pub. L. 103–66, set out as a note under section 2001 of this title. EFFECTIVE DATE OF 1989 AMENDMENT Amendment by Pub. L. 101–239 effective, except as otherwise provided, as if included in the provision of the Technical and Miscellaneous Revenue Act of 1988, Pub. L. 100–647, to which such amendment relates, see section 7817 of Pub. L. 101–239, set out as a note under section 1 of this title. EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–647, title V, § 5032(d), Nov. 10, 1988, 102 Stat. 3670, provided that: ‘‘The amendments made by this section [amending this section and section 2102 of this title] shall apply to the estates of decedents dying after the date of the enactment of this Act [Nov. 10, 1988].’’ 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 Pub. L. 89–809, title I, § 108(i), Nov. 13, 1966, 80 Stat. 1574, provided that: ‘‘The amendments made by this section [amending this section and sections 2102, 2104, 2105, 2106, and 6018 of this title and enacting sections 2107 and 2108 of this title] shall apply with respect to estates of decedents dying after the date of the enact- ment of this Act [Nov. 13, 1966].’’ § 2102. Credits against tax (a) In general The tax imposed by section 2101 shall be cred- ited with the amounts determined in accordance with sections 2012 and 2013 (relating to gift tax and tax on prior transfers). (b) 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 es- tate which at the time of his death is situ- ated 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 im- posed 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 de- cedent, 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 im- posed by section 2101. (5) Application of other credits For purposes of subsection (a), sections 2012 and 2013 shall be applied as if the credit al- lowed under this subsection were allowed under section 2010. (Aug. 16, 1954, ch. 736, 68A Stat. 397; Pub. L. 89–809, title I, § 108(b), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 94–455, title XX, § 2001(c)(1)(E)(i), Oct. 4, 1976, 90 Stat. 1851; Pub. L. 100–647, title V, § 5032(b), Nov. 10, 1988, 102 Stat. 3669; Pub. L. 104–188, title I, § 1704(f)(1), Aug. 20, 1996, 110 Stat. 1879; Pub. L. 105–34, title V, § 501(a)(1)(E), Aug. 5, 1997, 111 Stat. 845; Pub. L. 107–16, title V, § 532(c)(7), June 7, 2001, 115 Stat. 75.) Editorial Notes AMENDMENTS 2001—Subsec. (a). Pub. L. 107–16, § 532(c)(7)(A), reen- acted heading without change and amended text of sub- sec. (a) generally. Prior to amendment, text read as fol- lows: ‘‘The tax imposed by section 2101 shall be credited with the amounts determined in accordance with sec- tions 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).’’ Subsec. (b). Pub. L. 107–16, § 532(c)(7)(B), redesignated subsec. (c) as (b) and struck out heading and text of former subsec. (b). Text read as follows: ‘‘The max- imum 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 chap- ter, 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).’’ Subsec. (b)(5). Pub. L. 107–16, § 532(c)(7)(C), substituted ‘‘2012 and 2013’’ for ‘‘2011 to 2013, inclusive,’’. Subsec. (c). Pub. L. 107–16, § 532(c)(7)(B), redesignated subsec. (c) as (b). 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 sub- chapter under any treaty obligation of the United States.’’ Page 2619 TITLE 26—INTERNAL REVENUE CODE § 2104 1988—Subsec. (c)(1). Pub. L. 100–647, § 5032(b)(1)(A), substituted ‘‘$13,000’’ for ‘‘$3,600’’. Subsec. (c)(2). Pub. L. 100–647, § 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, § 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). Statutory Notes and Related Subsidiaries EFFECTIVE DATE 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 2012 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 sec- tion 108(i) of Pub. L. 89–809, set out as a note under sec- tion 2101 of this title. § 2103. Definition of gross estate For the purpose of the tax imposed by section 2101, the value of the gross estate of every dece- dent nonresident not a citizen of the United States shall be that part of his gross estate (de- termined as provided in section 2031) which at the time of his death is situated in the United States. (Aug. 16, 1954, ch. 736, 68A Stat. 397.) § 2104. Property within the United States (a) Stock in corporation For purposes of this subchapter shares of stock owned and held by a nonresident not a cit- izen of the United States shall be deemed prop- erty within the United States only if issued by a domestic corporation. (b) Revocable transfers and transfers within 3 years of death For purposes of this subchapter, any property of which the decedent has made a transfer, by trust or otherwise, within the meaning of sec- tions 2035 to 2038, inclusive, shall be deemed to be situated in the United States, if so situated either at the time of the transfer or at the time of the decedent’s death. (c) Debt obligations For purposes of this subchapter, debt obliga- tions of— (1) a United States person, or (2) the United States, a State or any polit- ical subdivision thereof, or the District of Co- lumbia, owned and held by a nonresident not a citizen of the United States shall be deemed property within the United States. Deposits with a do- mestic branch of a foreign corporation, if such branch is engaged in the commercial banking business, shall, for purposes of this subchapter, be deemed property within the United States. This subsection shall not apply to a debt obliga- tion to which section 2105(b) applies. (Aug. 16, 1954, ch. 736, 68A Stat. 397; Pub. L. 89–809, title I, § 108(c), Nov. 13, 1966, 80 Stat. 1572; Pub. L. 91–172, title IV, § 435(b), Dec. 30, 1969, 83 Stat. 625; Pub. L. 93–17, § 3(a)(1), Apr. 10, 1973, 87 Stat. 12; Pub. L. 93–625, § 9(b), Jan. 3, 1975, 88 Stat. 2116; Pub. L. 94–455, title XX, § 2001(c)(1)(L), Oct. 4, 1976, 90 Stat. 1853; Pub. L. 100–647, title I, § 1012(q)(11), Nov. 10, 1988, 102 Stat. 3525; Pub. L. 104–188, title I, § 1704(t)(38), Aug. 20, 1996, 110 Stat. 1889; Pub. L. 111–226, title II, § 217(c)(3), Aug. 10, 2010, 124 Stat. 2402; Pub. L. 113–295, div. A, title II, § 221(a)(98), Dec. 19, 2014, 128 Stat. 4051.) Editorial Notes AMENDMENTS 2014—Subsec. (c). Pub. L. 113–295 substituted ‘‘Depos- its’’ for ‘‘With respect to estates of decedents dying after December 31, 1969, deposits’’ in concluding provi- sions. 2010—Subsec. (c). Pub. L. 111–226, in concluding provi- sions, struck out before period at end ‘‘or to a debt ob- ligation of a domestic corporation if any interest on such obligation, were such interest received by the de- cedent at the time of his death, would be treated by reason of section 861(a)(1)(A) as income from sources without the United States’’. 1996—Subsec. (c). Pub. L. 104–188 substituted ‘‘section 861(a)(1)(A)’’ for ‘‘subparagraph (A), (C), or (D) of sec- tion 861(a)(1)’’ in concluding provisions. 1988—Subsec. (c). Pub. L. 100–647 substituted ‘‘sub- paragraph (A), (C), or (D) of section 861(a)(1)’’ for ‘‘sec- tion 861(a)(1)(B), section 861(a)(1)(G), or section 861(a)(1)(H)’’. 1976—Subsec. (b). Pub. L. 94–455 substituted ‘‘and transfers within 3 years of death’’ for ‘‘and transfers in contemplation of death’’ after ‘‘Revocable transfers’’. 1975—Subsec. (c). Pub. L. 93–625 inserted reference to section 861(a)(1)(H) of this title in last sentence. 1973—Subsec. (c). Pub. L. 93–17 made subsec. (c) inap- plicable to debt obligations where interest on such obli- gations is treated as income from sources without the United States by reason of section 861(a)(1)(G) of this title. 1969—Subsec. (c). Pub. L. 91–172 substituted ‘‘Decem- ber 31, 1969’’ for ‘‘December 31, 1972’’ in provisions deeming deposit with a domestic branch of a foreign corporation if such branch is engaged in the commer- cial banking business to be property within the United States. 1966—Subsec. (c). Pub. L. 89–809 added subsec. (c). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 effective Dec. 19, 2014, subject to a savings provision, see section 221(b) of Pub. L. 113–295, set out as a note under section 1 of this title.