Ill STAT. 846 PUBLIC LAW 105-34—AUG. 5, 1997 amount contained in paragraph (2) shall be increased by an amount equal to— " (A) $750,000, multiphed by "(B) the cost-of-living adjustment determined under section 1(f)(3) for such csdendar year by substituting 'calendar year 1997' for 'calendar year 1992' in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amount shall be rounded to the next lowest multiple of $10,000.". (c) ANNUAL GIFT TAX EXCLUSION. —Subsection (b) of section 2503 is amended— (1) by striking the subsection heading and inserting the following: "(b) EXCLUSIONS FROM GIFTS. — "(1) IN GENERAL.— ", (2) by moving the text 2 ems to the right, and (3) by adding at the end the following new paragraph: "(2) INFLATION ADJUSTMENT.—In the case of gifts made in a calendar year after 1998, the $10,000 amount contained in paragraph (1) shall be increased by an amount equal to— " (A) $10,000, multiplied by "(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting 'calendar year 1997' for 'calendar year 1992' in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.". (d) EXEMPTION FROM GENERATION-SKIPPING TAX. —Section 2631 (relating to GST exemption) is amended by adding at the end the following new subsection: "(c) INFLATION ADJUSTMENT.—In the case of an individual who dies in any calendar year after 1998, the $1,000,000 amount contained in subsection (a) shall be increased by an amount equal to— " (1) $1,000,000, multiplied by "(2) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting 'calendar year 1997' for 'calendar year 1992' in subparagraph (B) thereof. If any amount as adjusted under the preceding sentence is not a multiple of $10,000, such amoxmt shall be rounded to the next lowest multiple of $10,000.". (e) AMOUNT SUBJECT TO REDUCED RATE WHERE EXTENSION OF TIME FOR PAYMENT OF ESTATE TAX ON CLOSELY HELD BUSI- NESS. —Subsection (j) of section 6601 is amended by redesignating paragraph (3) as paragraph (4) and by inserting after paragraph (2) the following new paragraph: "(3) INFLATION ADJUSTMENT.—In the case of estates of decedents dying in a calendar year after 1998, the $1,000,000 amount contained in paragraph (2)(A) shall be increased by an Eunount equal to— " (A) $1,000,000, multiplied by "(B) the cost-of-living adjustment determined under section 1(f)(3) for such calendar year by substituting 'calendar year 1997' for 'calendar year 1992' in subparagraph (B) thereof
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