,i #aagth ,,congress #b;d ,session ,h4 ,r4 #heeh ,,in ,,the ,,house ,,of ,,representatives ,july #bh1 #bjbb,mr4 ,cohen 7for himself1 ,mr4 ,beyer1 ,mr4 ,carson1 ,ms4 ,de,lauro1 ,mr4 ,evans1 ,mr4 ,foster1 ,mr4 ,garca of ,illinois1 ,mr4 ,grijalva1 ,mr4 ,jones1 ,ms4 ,lee of ,california1 ,ms4 ,mc,collum1 ,ms4 ,newman1 ,mr4 ,de,fazio1 ,mr4 ,nadler1 ,ms4 ,schakowsky1 ,ms4 ,barragn1 ,mr4 ,gomez1 ,ms4 ,norton1 ,ms4 ,porter1 ,ms4 ,tlaib1 ,mrs4 ,watson ,coleman1 ,mr4 ,welch1 ,mr4 ,garamendi1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,mr4 ,yarmuth1 ,mr4 ,mc,govern1 ,ms4 ,clarke of ,new ,york1 ,mr4 ,brendan ,f4 ,boyle of ,pennsylvania1 ,ms4 ,plaskett1 ,mr4 ,takano1 ,mr4 ,moulton1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 and ,mr4 ,de,saulnier7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to impose a minimum tax on certain wealthy taxpayers that takes into account unrealized gains4 #a4 ,short title ,this ,act may be cited as the ,billionaire ,minimum ,income ,tax ,act4 #b4 ,minimum tax on certain wealthy taxpayers 7a7 ,in general ,subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after chapter #d the following new chapter3 #e ,minimum tax on certain wealthy taxpayers ,sec4 #adha4 ,minimum tax on certain wealthy taxpayers4,sec4 #adhb4 ,certain otherwise exempt transfers by certain wealthy taxpayers treated as taxable4 #adha4 ,minimum tax on certain wealthy taxpayers 7a7 ,in general ,in the case of an applicable taxpayer1 there is hereby imposed 7in addition to any other tax imposed by this subtitle7 for each taxable year a tax equal to the excess 7if any7 of-- 7#a7 #bj percent of the sum of-- 7,a7 the taxpayer's taxable income for such taxable year1 plus 7,b7 the taxpayer's net unrealized gain for such taxable year1 over 7#b7 the sum of-- 7,a7 the taxpayer's minimum tax account balance for such taxable year1 plus 7,b7 the taxpayer's regular tax liability 7as defined in section #bf7;b77 for such taxable year4 7b7 ,limitation on minimum tax ,the tax imposed under subsection 7a7 with respect to any applicable taxpayer 7other than an applicable taxpayer described in subsection 7c77#a77;,b77 for any taxable year shall not exceed #dj percent of the excess described in subsection 7c77#a77;,a7 with respect to such taxpayer for such taxable year4 7c7 ,applicable taxpayer ,for purposes of this section-- 7#a7 ,in general ,the term applicable taxpayer means-- 7,a7 any individual for any taxable year if the taxpayer's net worth for such taxable year exceeds #ajj1jjj1jjj 7half such amount in the case of a married individual filing a separate return71 and 7,b7 any trust or estate treated as an applicable taxpayer under subsection 7g74 7#b7 ,net worth ,the term net worth means1 with respect to any taxpayer for any taxable year1 the excess 7if any71 determined as of the close of such taxable year1 of-- 7,a7 the estimated value of all assets of the taxpayer and all trust attributed assets of the taxpayer1 as determined under regulations provided by the ,secretary1 over 7,b7 all debts 7and such other liabilities as the ,secretary may provide7 of the taxpayer and all trust attributed debts of the taxpayer4 7#c7 ,trust attributed assets ,the term trust attributed assets means1 with respect to any taxpayer-- 7,a7 any asset of a trust which such taxpayer is treated as owning under subpart ,e of part ,i of subchapter ,j of chapter #a1 and 7,b7 any asset of a trust 7other than a trust which a person other than the taxpayer is treated as owning under such subpart7 that is distributable to the taxpayer or from which income is distributable to the taxpayer in whole or in part1 whether or not the taxpayer's distribution rights are subject to a contingency1 unless that contingency is the death of another trust beneficiary4 7#d7 ,trust attributed debts ,the term trust attributed debts means1 with respect to any taxpayer-- 7,a7 any debt 7and such other liabilities as the ,secretary may provide7 of a trust described in paragraph 7#c77;,a71 and 7,b7 any debt 7and such other liabilities as the ,secretary may provide7 with respect to an asset described in paragraph 7#c77;,b7 if the holders of such debt have a right to repayment which is senior to the distribution rights of the taxpayer4 7#e7 ,gratuitous transfers 7,a7 ,in general ,in the case of any asset which was transferred by the taxpayer during the #e-year period ending with the close of the taxable year for which the taxpayer's net worth is determined 7and which is not otherwise taken into account in determining such net worth71 such taxpayer's net worth 7as determined for purposes of this section7 shall be-- 7i7 increased by the value of such transferred asset at the time of transfer1 7ii7 decreased 7but not in excess of the amount of the increase under clause 7i77 by the amount paid in consideration for such asset by the transferee1 7iii7 in the case of any decrease under clause 7ii71 increased to the extent of any liability of the transferee to the transferor or related party 7as defined under section #bfg7;b77 of the transferor1 incurred in connection with the transfer of such asset1 to the extent that the right to collect such liability is not already reflected in the net wealth of the transferor1 and 7iv7 increased by the value of any such transferred asset transferred with a purpose that was in substantial part to avoid tax1 to the extent not already included as an increase under clause 7i7 or 7iii74 7,b7 ,exceptions ,subparagraph 7,a7 shall not apply with respect to any transfer of an asset to-- 7i7 an organization described in section #agj7;c71 7ii7 a spouse or former spouse if section #ajda applies to such transfer1 or 7iii7 a spouse if both spouses are applicable taxpayers at the time of such transfer4 7,c7 ,special rule regarding transfer to avoid tax ,for purposes of subparagraph 7,a77iv71 if one or more transfers of assets would 7but for this sentence7 reduce the tax imposed under this section and the taxpayer retains a substantial degree of control over such assets1 the purpose of such transfers shall be treated as avoidance of tax unless the taxpayer shows otherwise by clear and convincing evidence4 7d7 ,minimum tax account balance ,for purposes of this section1 the term minimum tax account balance means1 with respect to any taxpayer for any taxable year1 the excess 7if any7 of-- 7#a7 the aggregate amount of tax imposed under this section with respect to the taxpayer for all prior taxable years1 over 7#b7 the sum of-- 7,a7 the aggregate credits allowed under sections #be;,e and #cf;,c with respect to the taxpayer for all prior taxable years1 and 7,b7 the aggregate reductions described in subsection 7h77#f7 with respect to the taxpayer for all prior taxable years4 7e7 ,net unrealized gain 7#a7 ,in general ,for purposes of this section1 the term net unrealized gain means1 with respect to any taxpayer for any taxable year1 the excess 7if any7 of-- 7,a7 the aggregate gains which would be recognized if such taxpayer sold each asset held at the close of such taxable year 7including any asset described in subsection 7c77#c77;,a77 for such asset's estimated value at such time1 over 7,b7 the aggregate losses which would be so recognized4 7#b7 ,estimated value ,for purposes of this section-- 7,a7 ,in general ,except as otherwise provided in this subsection1 the term estimated value means fair market value determined in such manner as the ,secretary may provide4 7,b7 ,non-readily tradable assets 7i7 ,default method ,in the absence of regulations or other guidance under clause 7iii7 or 7iv7 7and only in such absence71 the estimated value of a non-readily tradable asset shall be determined by beginning with the greatest 7determined after adjustment under clause 7ii77 of-- 7,i7 the original basis amount1 7,,ii7 the adjusted cost basis amount1 or 7,,iii7 the most recent fair market valuation amount4 7ii7 ,adjustment for deemed appreciation ,each amount described in subclauses 7,i71 7,,ii71 and 7,,iii7 of clause 7i7 shall be separately increased by a rate of appreciation equal to the sum of-- 7,i7 the annual rate of interest determined by the ,secretary to be equivalent to the average of the #e-year constant maturity ,treasury yields1 as published by the ,board of ,governors of the ,federal ,reserve ,system1 for the #e-year period ending on ,september #cj of the calendar year ending before the date with respect to which the estimated value is determined1 plus 7,,ii7 #b percentage points1 for the period beginning on the date with respect to which such amount relates and ending on the date with respect to which the estimated value is determined4 7iii7 ,regulations ,in the case of any non-readily tradable asset1 the estimated value of such asset shall be determined by such method as the ,secretary may prescribe in regulations or other guidance4 ,such method may require a single valuation method with respect to any such asset or may provide one or more options for valuing any such asset and may 7but is not required to7 include one or more of the following3 7,i7 ,required formulaic valuations based on any of the original basis amount 7grossed up by a formula71 other adjusted cost basis amounts 7potentially adjusted by a formula71 most recent fair market valuation amount 7grossed up by a formula71 or formulaic multiple of book value or other financial statement valuation4 7,,ii7 ,any valuation method utilized with respect to illiquid taxpayers under subsection 7f71 including any method under the special valuation regime and the rule that a valuation may be challenged by the taxpayer only upon a showing of clear and convincing error4 7iv7 ,certain required applications of illiquid taxpayer rules ,the ,secretary may issue regulations or other guidance which require certain taxpayers which hold one or more non-readily tradable assets to apply one or more of the rules applicable to illiquid taxpayers under paragraph 7#d7 and subsection 7h7 7without regard to whether the taxpayer makes the election described in paragraph 7#d7 or any election under subsection 7h77 with respect to all or any portion of such assets4 ,the ,secretary may require calculation and payment of estimated annual taxes on such assets to the extent that the ,secretary determines that doing so would best advance the goal of minimizing gaming by taxpayers4 7v7 ,recapture of depreciation and amortization permitted ,nothing in this subsection shall be construed to prevent the determination of gains and losses for purposes of this subsection with respect to any asset on the basis of the adjusted basis of such asset 7after taking into account any reductions in such basis for depreciation or amortization74 7#c7 ,non-readily tradable asset ,for purposes of this section1 the term non-readily tradable asset means any asset which is part of any class of assets with respect to which the ,secretary has determined that mandatory annual valuations are inappropriate for purposes of this section4 7#d7 ,illiquid taxpayers 7,a7 ,in general ,in the case of an illiquid taxpayer which makes the election described in subparagraph 7,b7-- 7i7 the net unrealized gain of such taxpayer shall be determined by only taking into account the unrealized gains 7and losses7 on assets other than non-readily tradable assets1 and 7ii7 such taxpayer shall be subject to the requirements of subsection 7f7 with respect to all non-readily tradable assets held by the taxpayer4 7,b7 ,illiquid taxpayer ,for purposes of this subsection1 the term illiquid taxpayer means any taxpayer for any taxable year if the estimated value of all assets other than non-readily tradable assets of the taxpayer as of the close of such taxable year does not exceed #bj percent of the taxpayer's net worth for such taxable year4 7,c7 ,election ,any election made under this paragraph shall be made at such time and in such manner as the ,secretary may provide and1 once made with respect to any asset1 may be revoked only with the consent of the ,secretary 7and subject to such requirements as the ,secretary may provide to ensure proper taxation of gains and losses with respect to such assets74 ,if the ,secretary determines that it is consistent with the purposes of this section1 the ,secretary may permit an illiquid taxpayer to elect to apply this paragraph 7and subsection 7f77 with respect to such portion of non-readily tradable assets of the taxpayer as the ,secretary determines is consistent with such purposes4 7f7 ,unliquidated ,tax ,reserve ,accounts 7#a7 ,in general ,the ,secretary shall issue regulations or other guidance under which1 in the case of any taxpayer subject to the requirements of this subsection 7including by reason of subsection 7e77#b77;,b77iv7 or 7e77#d7 or paragraph 7#b77,k7 of this subsection71 the taxpayer's tax liability under this section1 and the timing of any such liability1 with respect to any non-readily tradable assets held by such taxpayer are determined on the basis of the ,unliquidated ,tax ,reserve ,account rules prescribed by the ,secretary under this subsection4 7#b7 ,unliquidated ,tax ,reserve ,account rules ,the ,unliquidated ,tax ,reserve ,account rules prescribed by the ,secretary under this subsection shall1 except as otherwise provided by the ,secretary1 be consistent with the following3 7,a7 ,any taxpayer subject to this subsection shall be treated as having an ,unliquidated ,tax ,reserve ,account 7hereafter in this subsection referred to as an ,,ultra7 which consists of the non-readily tradable assets held by such taxpayer 7or1 as the case may be1 to the portion of such assets described in subsection 7e77#b77;,b77iv7 or 7e77#d77;,c77 7hereafter in this subsection referred to as the ,,ultra assets74 7,b7 ,except as provided in subparagraph 7,k7-- 7i7 in the case of the first year in which a taxpayer becomes subject to this subsection and so has assets in the ,,ultra1 the notional interest percentage of the ,,ultra shall be #bj percent 7#j percent in the case of a taxpayer which elects to recognize all unrealized gains of all assets in the ,,ultra upon initiation of the ,,ultra71 and 7ii7 at the end of the first year in which a taxpayer becomes subject to this subsection and so has assets in the ,,ultra and at the end of each subsequent year during which the taxpayer continues to be subject to this subsection and have assets in the ,,ultra1 the notional interest percentage of the ,,ultra shall be increased annually by an amount equal to the product of-- 7,i7 the deemed rate of return multiplied by #bj percent1 multiplied by 7,,ii7 #a minus the notional interest percentage immediately prior to the increase4 7,c7 ,the deemed rate of return for purposes of subparagraph 7,b77ii77,i7 shall be the estimated investment rate of return for the entire economy as determined by the ,secretary1 or if the ,secretary provides that the notional interest percentage should be determined separately with respect to any class of assets1 such other rate of return as the ,secretary determines appropriate for such asset class4 7,d7 ,any sale1 or other transfer1 of any ,,ultra asset shall be treated as a distribution from the ,,ultra1 except that the ,secretary shall provide rules for treating transfers made in the ordinary course of a trade or business and exchanges of non-readily tradable assets as other than distributions4 7,e7 ,except as otherwise provided by the ,secretary1 an increase in debt shall be treated as a distribution from the ,,ultra and any subsequent decrease in debt shall be taken into account as a reduction in distributions from the ,,ultra or as a credit against tax 7as the ,secretary determines appropriate74 7,f7 ,any distribution from the ,,ultra shall result in an increase in the taxable income of the taxpayer equal to the product of the estimated value of the distribution multiplied by the notional interest percentage at the time of the distribution4 7,g7 ,a taxpayer may elect to pay liabilities under this subsection in advance and proper credit shall be provided for any such liabilities so paid in advance upon resolution of the ,,ultra4 7,h7 ,the ,secretary shall establish a special valuation regime for purposes of determining the estimated value of any distribution of a non-tradable asset from an ,,ultra4 ,such special valuation regime shall ensure valuation accuracy1 minimize the potential for under-valuation1 and minimize the potential for taxpayer gaming4 ,such regime may include the use of appraisers employed by the ,secretary1 formulaic valuations1 or any other method designed to ensure valuation accuracy and minimize the potential for gaming4 ,any estimated value determined under such special valuation regime may be challenged by the taxpayer only upon a showing of clear and convincing error4 ,in place of the standard due process safeguards1 a taxpayer may opt to reject such special valuations 7under rules and procedures to be determined by the ,secretary7 and instead maintain the non-tradable asset within an ,,ultra4 7,i7 ,if a taxpayer is subject to the requirements of this subsection with respect to any assets1 such taxpayer shall remain subject to the requirements of this subsection 7without regard to whether or not such taxpayer ceases to be an applicable taxpayer7 until the ,,ultra is resolved and all liabilities with respect to such ,,ultra have been paid4 ,for purposes of this subsection1 an ,,ultra shall be treated as resolved upon the death of the taxpayer1 the distribution of all assets of the ,,ultra1 a determination by the ,secretary that further treatment as an ,,ultra is inconsistent with the purposes of this section1 or a determination by the ,secretary described in subparagraph 7,j74 7,j7 ,if the ,secretary determines1 upon application by the taxpayer1 that the resolution of an ,,ultra is not inconsistent with the purposes of this section-- 7i7 all remaining assets of such ,,ultra shall be treated as distributed1 and 7ii7 such ,,ultra shall be treated as resolved4 7,k7 ,upon the resolution of the ,,ultra1 there shall be imposed on the taxpayer a tax 7or a refund of taxes previously paid may be awarded7 as determined by the ,secretary by applying a retrospective formula determined by the ,secretary to eliminate the entire tax advantage of deferral4 ,such tax shall be determined in a manner to take into account prior distributions from the ,,ultra and any tax previously imposed thereon and any liability under this subsection which is paid in advance under subparagraph 7,g74 7,l7 ,if1 upon the death of a taxpayer1 an heir of ,,ultra assets elects to initiate a carry-over ,,ultra for such inherited assets-- 7i7 such assets shall not be taken into account under subparagraph 7,j7 upon the resolution of the decedent's ,,ultra1 7ii7 such heir's carry-over ,,ultra shall begin with a notional interest percentage equal to that of the decedent's ,,ultra at the time of death1 and 7iii7 such carry-over ,,ultra shall be maintained separately from any ,,ultra otherwise maintained by such heir4 7g7 ,treatment of trusts and estates as applicable taxpayers ,for purposes of this chapter-- 7#a7 ,in general ,any trust 7other than a trust the assets of which are treated as owned by another taxpayer under subpart ,e of part ,i of subchapter ,j of chapter #a7 or applicable estate shall be treated as an applicable taxpayer for purposes of this chapter if any assets of the trust are trust attributed assets with respect to any applicable taxpayer4 7#b7 ,applicable estate ,an estate is an applicable estate beginning with the third taxable year following the date of death of the decedent if the decedent was an applicable taxpayer for any taxable year ending during the #e-year period ending on the date of the decedent's death4 7#c7 ,trusts acquiring ,united ,states beneficiaries 7,a7 ,in general ,if paragraph 7#a7 applies to a trust for a transferor or beneficiary's taxable year1 and paragraph 7#a7 would have applied to the trust for any of the preceding #aj taxable years 7other than years prior to the effective date of this section7 but for the fact that in such year or years there was no ,united ,states beneficiary for any portion of the trust1 then the transferor shall be treated as having income for the taxable year equal to-- 7i7 the aggregate increases in the tax imposed under this title for each such prior taxable year 7beginning after the date of the enactment of this chapter7 which would have occurred if paragraph 7#a7 had applied to such trust for such year1 plus 7ii7 interest on such increase determined with respect to each such taxable year determined at the underpayment rate4 7,b7 ,no living transferor ,in the event that subparagraph 7,a7 would apply1 but for the fact that there is no living transferor1 then each beneficiary of such trust1 other than a contingent beneficiary1 shall be treated as having income for the taxable year equal to-- 7i7 the aggregate increases in the tax imposed under this title for each such prior taxable year 7beginning after the date of the enactment of this chapter7 which would have occurred if paragraph 7#a7 had applied to such trust1 but only to the extent of such increases in tax which would have occurred with respect to such portion of trust assets as are distributable to the beneficiary1 or such portion of trust income as is distributable to the beneficiary 7whether or not such assets or income are so distributed71 plus 7ii7 interest on such increase determined with respect to each such taxable year determined at the underpayment rate4 7,c7 ,contingent beneficiaries ,in the event that no tax is imposed on a beneficiary under subparagraph 7,b7 because such beneficiary is contingent1 then in the first taxable year in which such beneficiary is no longer contingent1 such beneficiary shall be treated as having income for the taxable year equal to the amount that would have been imposed under subparagraph 7,b71 plus interest on such increase determined with respect to each such taxable year determined at the underpayment rate1 but in no case will such tax and interest be imposed with respect to any portion of trust assets or income previously subject to tax under this section4 7,d7 ,contingent ,for purposes of this paragraph1 a beneficiary's interest in a trust shall be treated as contingent if 7and only if7 such interest depends on the outcome of uncertain future events 7other than the discretion of the trustee to determine the timing of the distribution of income74 7h7 ,election ,to pay liability in installments 7#a7 ,in general ,a taxpayer may elect to pay the tax imposed under subsection 7a7 or 7g7 for any taxable year in #e equal annual installments 7in the case of the taxpayer's first taxable year beginning in #bjbc1 #i equal annual installments74 7#b7 ,date for payment of installments ,if an election is made under paragraph 7#a71 the first installment shall be paid on or before the due date 7determined without regard to any extension of time for filing the return7 for the return of tax for the taxable year described in subsection 7a7 and each succeeding installment shall be paid on or before the due date 7as so determined7 for the return of tax for the taxable year following the taxable year with respect to which the preceding installment was made4 7#c7 ,acceleration of payment 7,a7 ,in general ,if there is an addition to tax for failure to timely pay any installment required under this subsection 7other than by reason of a timely election made under paragraph 7#e771 a bankruptcy of the taxpayer 7including in a title #aa or similar case71 or any similar circumstance1 then the unpaid portion of all remaining installments shall be due on the date of such event 7or in the case of a title #aa or similar case1 the day before the petition is filed74 7,b7 ,payment within #f months ,in the case of the payment of any installment required under this subsection during the #f-month period beginning on the due date of such installment1 subparagraph 7,a7 shall not apply and rules similar to the rules of section #faff7;g77#c77;,b7 shall apply4 7#d7 ,proration of deficiency to installments ,if an election is made under paragraph 7#a7 to pay tax imposed under subsection 7a7 in installments and a deficiency has been assessed with respect to such tax1 the deficiency shall be prorated to the installments payable under paragraph 7#a74 ,the part of the deficiency so prorated to any installment the date for payment of which has not arrived shall be collected at the same time as1 and as a part of1 such installment4 ,the part of the deficiency so prorated to any installment the date for payment of which has arrived shall be paid upon notice and demand from the ,secretary4 ,this subsection shall not apply if the deficiency is due to negligence1 to intentional disregard of rules and regulations1 or to fraud with intent to evade tax4 7#e7 ,election ,any election under paragraph 7#a7 shall be made at such time and in such manner as the ,secretary shall provide4 7#f7 ,reduction of installment payments to extent minimum account balance is in excess of expected recognized gain ,if the minimum account balance of the taxpayer for any taxable year 7reduced by the amount of any credit allowed under section #be;,e for such taxable year7 exceeds #bj percent of the taxpayer's net unrealized gain for such taxable year1 such excess shall be applied to reduce the amount of any installment payments of the taxpayer the date for payment of which has not yet arrived 7without regard to the taxable year to which such installment payment relates74 ,any reduction under the preceding sentence shall be applied to installment payments on a last-due1 first-reduced basis4 7i7 ,information reporting ,the ,secretary shall1 not later than #a year after the date of the enactment of this section1 issue regulations-- 7#a7 requiring such persons as the ,secretary determines appropriate to file a return with the ,secretary which include such information as the ,secretary determines necessary to carry out this section1 including the provision of applicable financial statements 7within the meaning of section #dea7;b771 other financial or accounting statements1 insurance valuations1 or similar documents1 and 7#b7 requiring persons required to file returns under paragraph 7#a7 to furnish statements to such other persons as the ,secretary determines appropriate which contain all or a portion of the information contained in such return4 7j7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes this section and sections #be;,e and #cf;,c1 including regulations or other guidance to-- 7#a7 require reporting of basis and estimated value of assets1 aggregated by asset class or otherwise1 held by the applicable taxpayer1 and liabilities of the applicable taxpayer1 as of the close of the taxable year1 in such manner as the ,secretary may provide1 7#b7 discourage applicable taxpayers from inappropriately converting assets into assets which are non-readily tradable assets1 7#c7 treat assets held directly or indirectly by the applicable taxpayer as held by the applicable taxpayer1 7#d7 in such circumstances as the ,secretary determines there is a reasonable risk of an intent to avoid tax1 treat assets owned or controlled by persons related to the applicable taxpayer as owned by the applicable taxpayer1 7#e7 provide for the application of such sections with respect to married individuals1 including rules with respect to-- 7,a7 individuals whose marital or joint return filing status changes1 and 7,b7 the transfer of an individual's minimum tax account balance to the individual's spouse or otherwise upon the death of such individual1 7#f7 provide that the tax imposed under this section shall not be taken into account in determining the amount of any required payment of estimated tax or in satisfying the safe harbor to avoid a penalty for the underpayment of estimated tax1 and 7#g7 if the ,secretary determines appropriate to carry out the purposes of this section1 provide for the separate application of such sections with respect to different classes of assets4 7k7 ,standards for making certain determinations ,for purposes of making any determination described in subsection 7e77#b77;,a71 7e77#b77;,b77iii71 7e77#c71 7f77#b77;,c71 or 7f77#b77;,d71 the ,secretary shall balance the goals of ensuring valuation accuracy1 minimizing the potential for taxpayer gaming1 and avoiding unduly excessive compliance and administrative costs4 #adhb4 ,certain otherwise exempt transfers by certain wealthy taxpayers treated as taxable 7a7 ,in general ,notwithstanding any other provision of this title1 in the case of any specified transfer by a covered taxpayer1 gain shall be recognized by such covered taxpayer in an amount equal to the excess 7if any7 of the estimated value 7as defined in section #adha7;e77#b77 of the property transferred over the adjusted basis of such property4 7b7 ,specified transfer ,for purposes of this section1 the term specified transfer means any gift1 charitable contribution1 bequest1 or other transfer upon death4 7c7 ,covered taxpayer ,for purposes of this section1 the term covered taxpayer means1 with respect to any taxable year1 any taxpayer which is an applicable taxpayer for such taxable year or was an applicable taxpayer for any of the #aj taxable years immediately preceding such taxable year4 7d7 ,regulations ,the ,secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out the purposes of this section1 including regulations or other guidance that provide for exceptions with respect to-- 7#a7 transfers which are de minimis or which otherwise do not pose a risk of circumventing the purposes of this chapter1 and 7#b7 taxpayers which do not pose such a risk4 4 7b7 ,credit against taxes on recognized gains ,subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #be;,d the following new section3 #be;,e4 ,minimum tax on certain wealthy taxpayers credited against recognized gains ,in the case of an individual 7including any estate or trust71 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the lesser of-- 7#a7 the taxpayer's minimum tax account balance 7as defined in section #adha7 for such taxable year determined1 in the case of any tax imposed under section #adha with respect to which an election is made under such section to pay such tax in installments1 by only taking into account so much of such tax as has been paid as of the close of such taxable year1 and 7#b7 the excess 7if any7 of-- 7,a7 the taxpayer's regular tax 7as defined in section #bf7;b77 for such taxable year1 over 7,b7 the amount which would be determined under subparagraph 7,a7 if the taxpayer did not recognize any gain or loss for such taxable year4 4 7c7 ,refund of excess minimum tax on certain wealthy taxpayers ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,credit for excess minimum tax on certain wealthy taxpayers ,in the case of an individual 7including any estate or trust71 there shall be allowed as a credit against the tax imposed by this subtitle for any taxable year an amount equal to the excess 7if any7 of-- 7#a7 the amount described in section #be;,e7#a7 for such taxable year1 over 7#b7 the sum of-- 7,a7 #bj percent of the taxpayer's net unrealized gain 7as defined in section #adha7 for such taxable year1 7,b7 the aggregate credits allowed under section #be;,e for such taxable year and all prior taxable years1 and 7,c7 the aggregate reductions determined under section #adha7;h77#f7 for such taxable year and all prior taxable years4 4 7d7 ,penalties for failure ,to report 7#a7 ,returns ,section #fgbd7;d77#a77;,d7 of the ,internal ,revenue ,code of #aihf is amended by inserting #adha7;i77#a7 or before #fjee4 7#b7 ,statements ,section #fgbd7;d77#b7 of such ,code is amended-- 7,a7 in subparagraph 7,,ii71 by striking or at the end1 7,b7 in the first subparagraph 7,,jj71 by striking the period at the end and inserting a comma1 7,c7 in the second subparagraph 7,,jj7-- 7i7 by redesignating such subparagraph as subparagraph 7,,kk71 and 7ii7 by striking the period at the end and inserting 1 or1 and 7,d7 by adding at the end the following new subparagraph3 7,,ll7 section #adha7;i77#b7 7relating to statements relating to minimum tax on certain wealthy taxpayers74 4 7e7 ,conforming amendments 7#a7 ,section #fbaa7;b77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by inserting #cf;,c1 after #cf;,b14 7#b7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7#c7 ,the table of chapters for subtitle ,a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to chapter #d the following new item3 ,chapter #e4 ,minimum tax on certain wealthy taxpayers4 4 7#d7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #be;,d the following new item3 ,sec4 #be;,e4 ,minimum tax on certain wealthy taxpayers credited against recognized gains4 4 7#e7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,credit for excess minimum tax on certain wealthy taxpayers4 4 7f7 ,sense of ,congress regarding ,state residency rules ,it is the sense of ,congress that the taxation by the several ,states of extreme wealth is in the public interest and that silence on the part of ,congress shall not be construed to impose any barrier to the use of reasonable residency rules1 including such rules that apportion a tax on deemed sales or extreme wealth over no more than five years1 by the several ,states or the ,district of ,columbia4 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4