A bill to amend the Internal Revenue Code of 1954 to provide that the maximum reduction in valuation under the special estate tax valuation for certain farm, small business, and so forth, real property shall be increased to $1,000,000 and to provide an inflation adjustment for such amount.

Amends the Internal Revenue Code to provide that the maximum reduction (currently $500,000) in valuation under the special estate tax valuation for certain farm and small business real property shall be increased annually between 1981 and 1985 by $100,000 each year plus an inflation adjustment amount.