A bill to amend the Internal Revenue Code of 1954 to provide for the valuation of a decedent's interest in a closely held business for estate tax purposes.

Provides that the value of a decedent's interest in a closely held business shall be determined by either of two methods, at the election of the executor, and within specified limitations. States that the election shall be exercised by the executor not later than the time prescribed for filing the return with respect to the estate tax (including extensions thereof).

Defines the terms used in this Act, including "interest in a closely held business," "capitalization factor," and "operating return." (Adds 26 U.S.C. 2031(c))