REDUCTION OF CREDIT FOR STATE DEATH TAXES.

SEC. 531. REDUCTION OF CREDIT FOR STATE DEATH TAXES. (a) In General.—Section 2011(b) (relating to amount of credit) is amended— (1) by striking “Credit.—The credit allowed” and inserting “Credit.— “(1) In general.—Except as provided in paragraph (2), the credit allowed”, (2) by striking “For purposes” and inserting the following: “(3) Adjusted taxable estate.—For purposes”, and (3) by inserting after paragraph (1) the following new paragraph: “(2) Reduction of maximum credit.— “(A) In general.—In the case of estates of decedents dying after December 31, 2001, the credit allowed by this section shall not exceed the applicable percentage of the credit otherwise determined under paragraph (1). “(B) Applicable percentage.— “In the case of estates of decedents dying during: The applicable percentage is: 2002 75 percent 115 STAT. 73 2003 50 percent 2004 25 percent.”, (b) Effective Date.—The amendments made by this subsection shall apply to estates of decedents dying after December 31, 2001.