1. Short title This Act may be cited as the Family Business Preservation Estate Tax Act . 2. Taxable estate reduced by value of certain family-owned business interests (a) In general Part IV of subchapter A of chapter 11 of the Internal Revenue Code of 1986 is amended by inserting after section 2056A the following new section: 2057. Family-owned business interests (a) General rule (1) Allowance of deduction For purposes of the tax imposed by section 2001, in the case of an estate of a decedent to which this section applies, the value of the taxable estate shall be determined by deducting from the value of the gross estate the adjusted value of the qualified family-owned business interests of the decedent which are described in subsection (b)(2). (2) Maximum deduction The deduction allowed by this section shall not exceed the greater of— (A) the basic exclusion amount in effect under section 2010(c)(3) for the calendar year which includes the date of the death of the decedent, or (B) the value of any qualified farmland which constitutes the qualified family-owned business interest (in the case of an entity described in subsection (e)(1)(B), qualified farmland held by such entity shall be treated as constituting a qualified family-owned business interest in the same proportion as the decedent’s ownership interest in such entity). (3) Qualified farmland For purposes of paragraph (2)(B), the term qualified farmland means qualified real property as defined in section 2032A(b) applied without regard to paragraph (2)(B) thereof. (b) Estates to which section applies (1) In general This section shall apply to an estate if— (A) the decedent was (at the date of the decedent’s death) a citizen or resident of the United States, (B) the executor elects the application of this section and files the agreement referred to in subsection (h), (C) the sum of— (i) the adjusted value of the qualified family-owned business interests described in paragraph (2), plus (ii) the amount of the gifts of such interests determined under